28 Oct 2010 07:00
Severstal reports 9M and Q3 2010 operational results
Moscow, Russia - October 28, 2010 - OAO Severstal (LSE: SVST), one of the world's leading integrated steel and mining companies, today announces its operational results for the 9 months and Q3 2010.
PRODUCTION OF HOT METAL AND CRUDE STEEL
Total output* | 9M 2010 | 9M 2009 | Change, % | Q3 2010 | Q2 2010 | Change, % |
Hot metal: total output | 9 524 473 | 7 723 747 | 23% | 3 038 349 | 3 402 987 | -11% |
Russian Steel | 6 418 509 | 5 189 534 | 24% | 2 188 671 | 2 132 028 | 3% |
North America | 3 105 964 | 2 534 213 | 23% | 849 678 | 1 270 959 | -33% |
Crude steel: total output | 12 878 117 | 10 917 152 | 18% | 4 213 246 | 4 563 855 | -8% |
Russian Steel | 8 172 365 | 6 898 432 | 18% | 2 856 327 | 2 739 890 | 4% |
North America | 4 705 752 | 4 018 720 | 17% | 1 356 919 | 1 823 965 | -26% |
CONSOLIDATED SALES (NET OF INTERCOMPANY SALES)
Sales volume* | 9M 2010 | 9M 2009 | Change, % | Q3 2010 | Q2 2010 | Change, % |
Coal: | 5 652 988 | 3 541 900 | 60% | 1 992 852 | 1 992 612 | 0% |
Coking coal | 293 007 | 109 512 | 168% | 164 811 | 116 843 | 41% |
Coking coal concentrate | 2 370 723 | 624 416 | 280% | 886 209 | 854 748 | 4% |
Steam coal | 2 989 258 | 2 807 972 | 6% | 941 833 | 1 021 020 | -8% |
Iron ore | 2 320 275 | 3 197 139 | -27% | 1 064 594 | 604 630 | 76% |
Iron ore pellets | 2 320 275 | 3 084 350 | -25% | 1 064 594 | 604 630 | 76% |
Iron ore concentrate | - | 112 789 | n.a. | - | - | n.a. |
Gold (oz tr.) | 408 406 | 360 640 | 13% | 148 412 | 137 356 | 8% |
Semi-finished products | 705 493 | 529 407 | 33% | 297 547 | 338 686 | -12% |
Rolled products: | 10 275 317 | 8 736 051 | 18% | 3 321 934 | 3 726 502 | -11% |
Hot-rolled strip and plate | 5 423 957 | 4 394 599 | 23% | 1 744 427 | 1 930 971 | -10% |
Cold-rolled sheet | 2 266 462 | 1 890 363 | 20% | 695 670 | 855 486 | -19% |
Galvanised and metallic coated sheet | 1 786 123 | 1 639 003 | 9% | 526 077 | 656 656 | -20% |
Color coated sheet | 210 362 | 220 671 | -5% | 96 866 | 72 641 | 33% |
Long products | 588 415 | 591 414 | -1% | 258 895 | 210 748 | 23% |
Downstream products: | 1 352 531 | 1 198 877 | 13% | 457 742 | 499 554 | -8% |
Metalware products | 657 462 | 611 175 | 8% | 230 789 | 236 016 | -2% |
Large diameter pipes | 335 249 | 267 945 | 25% | 102 814 | 131 334 | -22% |
Other tubes, pipes, formed shapes | 359 820 | 319 757 | 13% | 124 138 | 132 204 | -6% |
* - metric tonnes unless otherwise stated.
SEGMENT BREAKDOWN
Severstal Resources*
Sales volume** | 9M 2010 | 9M 2009 | Change, % | Q3 2010 | Q2 2010 | Change, % |
Coal: | 8 604 927 | 6 336 756 | 36% | 2 977 499 | 2 987 406 | 0% |
Coking coal, Vorkutaugol | 293 007 | 109 512 | 168% | 164 811 | 116 843 | 41% |
Coking coal concentrate, including | 5 322 662 | 3 419 272 | 56% | 1 870 856 | 1 849 543 | 1% |
Vorkutaugol | 3 960 084 | 2 945 579 | 34% | 1 399 637 | 1 351 709 | 4% |
PBS Coals | 1 362 578 | 473 693 | 188% | 471 218 | 497 834 | -5% |
Steam coal, including | 2 989 258 | 2 807 972 | 6% | 941 833 | 1 021 020 | -8% |
Vorkutaugol | 2 000 335 | 1 647 830 | 21% | 561 134 | 682 486 | -18% |
PBS Coals | 988 923 | 1 160 141 | -15% | 380 699 | 338 534 | 12% |
Iron ore: | 10 208 519 | 9 847 076 | 4% | 3 595 695 | 3 372 149 | 7% |
Iron ore pellets | 7 175 579 | 6 023 652 | 19% | 2 481 119 | 2 432 813 | 2% |
Iron ore concentrate | 3 032 940 | 3 823 424 | -21% | 1 114 576 | 939 337 | 19% |
Gold (oz tr.) | 408 406 | 360 640 | 13% | 148 412 | 137 356 | 8% |
Severstal Russian Steel*
Sales volume** | 9M 2010 | 9M 2009 | Change, % | Q3 2010 | Q2 2010 | Change, % |
Semi-finished products | 809 211 | 518 606 | 56% | 297 499 | 413 290 | -28% |
Rolled products: | 5 740 654 | 4 898 917 | 17% | 1 937 918 | 2 045 229 | -5% |
Hot-rolled strip and plate | 3 431 457 | 2 854 691 | 20% | 1 074 006 | 1 161 747 | -8% |
Cold-rolled sheet | 1 143 262 | 906 996 | 26% | 370 479 | 457 149 | -19% |
Galvanised and metallic coated sheet | 390 555 | 367 497 | 6% | 140 308 | 153 216 | -8% |
Color coated sheet | 179 138 | 178 319 | 0% | 91 890 | 60 810 | 51% |
Long products | 596 242 | 591 414 | 1% | 261 236 | 212 306 | 23% |
Downstream products: | 1 273 472 | 1 099 480 | 16% | 425 946 | 471 408 | -10% |
Metalware products | 577 926 | 510 740 | 13% | 198 843 | 207 742 | -4% |
Large diameter pipes | 335 249 | 268 522 | 25% | 102 814 | 131 334 | -22% |
Other tubes, pipes, formed shapes | 360 296 | 320 218 | 13% | 124 288 | 132 333 | -6% |
Severstal North America*
Sales volume** | 9M 2010 | 9M 2009 | Change, % | Q3 2010 | Q2 2010 | Change, % |
Rolled products: | 4 544 752 | 3 837 727 | 18% | 1 386 734 | 1 684 502 | -18% |
Hot-rolled strip and plate | 1 993 387 | 1 540 501 | 29% | 670 799 | 769 520 | -13% |
Cold-rolled sheet | 1 124 573 | 983 368 | 14% | 325 191 | 399 711 | -19% |
Galvanised and metallic coated sheet | 1 395 568 | 1 271 506 | 10% | 385 769 | 503 439 | -23% |
Color coated sheet | 31 223 | 42 352 | -26% | 4 976 | 11 832 | -58% |
Downstream products (Metalware) | 81 286 | 101 616 | -20% | 32 586 | 28 802 | 13% |
* - including intercompany sales. ** - metric tonnes unless otherwise stated.
VOLUME WEIGHTED AVERAGE SELLING PRICES
Consolidated sales
Sales prices (EXW), USD/tonne | 9M 2010 | 9M 2009 | Change, % | Q3 2010 | Q2 2010 | Change, % |
Coal | 86 | 62 | 38% | 94 | 93 | 1% |
Coking coal, Vorkutaugol | 56 | 15 | 280% | 72 | 37 | 95% |
Coking coal concentrate, including | 139 | 81 | 71% | 150 | 150 | 0% |
Vorkutaugol | 139 | 78 | 78% | 148 | 154 | -4% |
PBS Coals | 138 | 103 | 34% | 155 | 137 | 13% |
Steam coal | 42 | 41 | 3% | 44 | 43 | 2% |
Vorkutaugol | 32 | 27 | 19% | 32 | 32 | 0% |
PBS Coals | 63 | 60 | 4% | 62 | 66 | -6% |
Iron ore | 85 | 40 | 112% | 96 | 99 | -3% |
Iron ore pellets | 94 | 44 | 114% | 105 | 111 | -5% |
Iron ore concentrate | - | 35 | n.a. | - | - | n.a. |
Gold (USD/oz tr.) | 1 181 | 942 | 25% | 1 238 | 1 194 | 4% |
Semi-finished products | 482 | 331 | 46% | 507 | 510 | -1% |
Rolled products | 704 | 567 | 24% | 733 | 727 | 1% |
Hot-rolled strip and plate | 604 | 464 | 30% | 623 | 636 | -2% |
Cold-rolled sheet | 704 | 584 | 21% | 752 | 715 | 5% |
Galvanised and metallic coated sheet | 900 | 825 | 9% | 915 | 916 | 0% |
Color coated sheet | 1 213 | 1 001 | 21% | 1 172 | 1 276 | -8% |
Long products | 789 | 438 | 80% | 836 | 802 | 4% |
Downstream products | 1 183 | 1 077 | 10% | 1 199 | 1 205 | 0% |
Metalware products | 1 072 | 969 | 11% | 1 120 | 1 085 | 3% |
Large diameter pipes | 2 004 | 1 948 | 3% | 1 992 | 2 010 | -1% |
Other tubes and pipes, formed shapes | 690 | 556 | 24% | 736 | 695 | 6% |
Severstal Resources
Sales prices (EXW), USD/tonne | 9M 2010 | 9M 2009 | Change, % | Q3 2010 | Q2 2010 | Change, % |
Coal | 83 | 62 | 33% | 91 | 89 | 2% |
Coking coal, Vorkutaugol | 56 | 15 | 280% | 72 | 37 | 95% |
Coking coal concentrate | 139 | 81 | 71% | 150 | 150 | 0% |
Vorkutaugol | 139 | 78 | 78% | 148 | 154 | -4% |
PBS Coals | 138 | 103 | 34% | 155 | 137 | 13% |
Steam coal | 42 | 41 | 3% | 44 | 43 | 2% |
Vorkutaugol | 32 | 27 | 19% | 32 | 32 | 0% |
PBS Coals | 63 | 60 | 4% | 62 | 66 | -6% |
Iron ore | 85 | 40 | 112% | 96 | 99 | -3% |
Iron ore pellets | 94 | 44 | 114% | 105 | 111 | -5% |
Iron ore concentrate | 66 | 34 | 94% | 80 | 71 | 13% |
Gold (USD/oz tr.) | 1 181 | 942 | 25% | 1 238 | 1 194 | 4% |
Severstal Russian Steel
Sales prices (EXW), USD/tonne | 9M 2010 | 9M 2009 | Change, % | Q3 2010 | Q2 2010 | Change, % |
Semi-finished products | 459 | 323 | 42% | 478 | 485 | -1% |
Rolled products | 629 | 468 | 34% | 670 | 649 | 3% |
Hot-rolled strip and plate | 571 | 425 | 34% | 596 | 596 | 0% |
Cold-rolled sheet | 642 | 475 | 35% | 708 | 646 | 10% |
Galvanised and metallic coated sheet | 837 | 671 | 25% | 865 | 844 | 2% |
Color coated sheet | 1 197 | 974 | 23% | 1 161 | 1 258 | -8% |
Long products | 602 | 438 | 37% | 627 | 626 | 0% |
Downstream products | 1 174 | 1 036 | 13% | 1 187 | 1 198 | -1% |
Metalware products | 1 033 | 860 | 20% | 1 079 | 1 046 | 3% |
Large diameter pipes | 2 004 | 1 948 | 3% | 1 992 | 2 010 | -1% |
Other tubes and pipes, formed shapes | 690 | 556 | 24% | 736 | 695 | 6% |
Severstal North America
Sales prices (EXW), USD/tonne | 9M 2010 | 9M 2009 | Change, % | Q3 2010 | Q2 2010 | Change, % |
Rolled products: | 782 | 693 | 13% | 782 | 809 | -3% |
Hot-rolled strip and plate | 680 | 536 | 27% | 680 | 718 | -5% |
Cold-rolled sheet | 791 | 684 | 16% | 817 | 819 | 0% |
Galvanised and metallic coated sheet | 921 | 870 | 6% | 936 | 941 | -1% |
Color coated sheet | 1 328 | 1 116 | 19% | 1 386 | 1 384 | 0% |
Downstream products (Metalware) | 1 422 | 1 515 | -6% | 1 430 | 1 469 | -3% |
Note: As of Q2 2010, Severstal has been reporting its consolidated operational results without Lucchini sales volumes and average selling prices. On June 30, 2010 Severstal announced the sale of 50.8% of Lucchini S.p.A shares to a company controlled by Alexey Mordashov. Lucchini's operational results for 9M and Q3 2010 are provided below for information purposes only. Severstal currently owns 49.2% of Lucchini S.p.A.
LUCCHINI
Total output* | 9M 2010 | 9M 2009 | Change, % | Q3 2010 | Q2 2010 | Change, % |
Hot metal: total output | 1 488 222 | 982 969 | 51% | 408 023 | 575 728 | -29% |
Crude Steel: total output | 1 878 989 | 1 211 371 | 55% | 515 842 | 736 925 | -30% |
Sales volume, tonnes* | 9M 2010 | 9M 2009 | Change, % | Q3 2010 | Q2 2010 | Change, % |
Semi-finished products | 712 204 | 401 669 | 77% | 170 306 | 234 812 | -27% |
Rolled long products | 1 297 715 | 884 350 | 47% | 363 330 | 485 308 | -25% |
Downstream products (Metalware) | 39 367 | 31 636 | 24% | 13 657 | 15 752 | -13% |
Sales prices (EXW), USD/tonne | 9M 2010 | 9M 2009 | Change, % | Q3 2010 | Q2 2010 | Change, % |
Semi-finished products | 506 | 462 | 9% | 590 | 547 | 8% |
Rolled long products | 916 | 959 | -4% | 1 034 | 906 | 14% |
Downstream products (Metalware) | 981 | 1 018 | -4% | 1 041 | 950 | 10% |
* - including intercompany sales
Note: Semi-finished products include hot metal, pig iron, slabs, billets, ingots, steel casting and forgings.
***
Investor Relations
Vladimir Zaluzhsky
T: +7 (495) 926-77-66 ext. 6375
vladimir.zaluzhsky@severstal.com
Public Relations
Maria Medvedeva
T: +7 (495) 926-77-66 ext. 6536
maria.medvedeva@severstal.com
***
ОАО Severstal is one of the world's leading integrated steel and mining companies. The company's shares are traded on the Russian Trading System (CHMF), MICEX (CHMF, RTS) and LSE (SVST). With assets in Russia, Ukraine, Kazakhstan, Italy, France, the USA and Africa, Severstal posted revenue of $13.05 billion and EBITDA of $844 million in 2009. The Company was also ranked 13th in Metal Bulletin's 2009 global ranking of Top Steelmakers, producing 16.8 million tonnes of crude steel. Severstal's mining assets in Russia and the USA mean that the Company is self sufficient in coking coal and iron ore in Russia and 50% self sufficient in coking coal in the USA.