11 Oct 2019 07:01
PAO Severstal (SVST) Severstal reports Q3 2019 operational results 11-Oct-2019 / 09:00 MSK Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group. The issuer is solely responsible for the content of this announcement. Severstal reports Q3 2019 operational results Moscow, Russia - 11 October 2019 - PAO Severstal (MICEX-RTS: CHMF; LSE: SVST), one of the world's leading vertically integrated steel and steel-related mining companies, today announces its operational results for Q3 2019. Q3 2019 GROUP HIGHLIGHTS Hot metal output increased 7% q/q in Q3 2019 to 2.46 mln tonnes (Q2 2019: 2.30 mln tonnes) following short-term maintenance works at BF#1, BF#4 and BF#5 in the previous quarter. Crude steel production declined 1% to 3.03 mln tonnes (Q2 2019: 3.06 mln tonnes) mainly reflecting a decline in EAF steel output following the sale of Balakovo mini-mill in July 2019.Consolidated steel product sales remained flat q/q at 2.83 mln tonnes in Q3 2019 (Q2 2019: 2.83 mln tonnes). The share of domestic sales remained at historically high levels of 67% due to their continued attractiveness (Q2 2019: 70%). The share of high value-added (HVA) products within the sales portfolio amounted to 45% (Q2 2019: 46%), reflecting a decline in sales of galvanised, colour-coated and cold-rolled products due to short-term maintenance works at one of the pickling lines. This was offset by higher sales volumes of thick plate and lower sales of long products. Coking coal concentrate sales volumes from Vorkutaugol surged 41% q/q in line with the 42% increase q/q in production of run-of-mine coal. Iron ore pellet sales declined 15% to 2.46 mln tonnes (Q2 2019: 2.90 mln tonnes) reflecting higher production of iron ore concentrate at Karelsky Okatysh. Iron ore concentrate sales volumes increased 35% to 1.93 mln tonnes (Q2 2019: 1.43 mln tonnes) driven by production volumes growth at Karelsky Okatysh. 9M 2019 GROUP HIGHLIGHTS Hot metal output increased 3% y/y to 7.13 mln tonnes in 9M 2019 (9M 2018: 6.91 mln tonnes) driven by improved maintenance works efficiency and higher quality of raw materials. Crude steel production remained almost flat at 9.13 mln tonnes (9M 2018: 9.10 mln tonnes), predominantly reflecting higher aggregate productivity levels, which were offset by lower EAF production in Q3 following the sale of Balakovo mini-mill.Coking coal concentrate sales volumes from Vorkutaugol increased 43% y/y, driven by growth in coal production. Iron ore concentrate sales volumes increased 14% y/y to 4.66 mln tonnes (9M 2018: 4.08 mln tonnes) predominantly reflecting production volumes growth at Karelsky Okatysh. The share of HVA products remained high at 45% in 9M 2019, primarily reflecting higher sales of galvanised and colour-coated products following the launch of new product lines, which reached their full utilisation rates in Q1 2019. SUMMARY OF KEY PRODUCTION, SALES VOLUMES
SEVERSTAL'S CONSOLIDATED SALES (NET OF INTERCOMPANY SALES)
SEVERSTAL RESOURCES Coking coal concentrate sales volumes from Vorkutaugol surged 41% q/q reflecting the 42% increase q/q in production of run-of-mine coal. Iron ore pellet sales declined 15% to 2.46 mln tonnes (Q2 2019: 2.90 mln tonnes) reflecting higher production of iron ore concentrate at Karelsky Okatysh. Iron ore concentrate sales volumes increased 35% to 1.93 mln tonnes (Q2 2019: 1.43 mln tonnes) driven by production volumes growth at Karelsky Okatysh.
SEVERSTAL RUSSIAN STEEL ('RSD') RSD steel product sales remained flat q/q at 2.85 mln tonnes in Q3 2019 (Q2 2019: 2.85 mln tonnes).The share of domestic sales declined 3 ppts, to 67%, but remained at historically high levels due to a favourable domestic pricing environment (Q2 2019: 70%). The share of high value-added (HVA) products within the sales portfolio amounted to 45% (Q2 2019: 46%), reflecting a decline in sales of galvanised, colour-coated and cold-rolled products due to short-term maintenance works at one of the pickling lines. This was offset by higher sales volumes of thick plate and lower sales of long products. LDP sales volumes declined 6% q/q, reflecting changes in the product mix. Izhora Pipe Mill maintained its 100% utilisation rate in Q3 2019. The weighted average selling price for the whole range of rolled steel products remained almost flat in Q3 2019, reflecting the flexibility of Severstal's distribution channels as well as a favourable pricing environment in the domestic market.
1) All production data is reported in thousands of tonnes; 2) Sales prices are stated on EXW basis; 3) Segmental data includes intercompany sales; 4) Semi-finished products include pig iron, slabs, billets, ingots, steel casting and forgings; 5) Large diameter pipes include all pipes with a diameter between 820 and 1420 mm.
Investor Relations Evgeny Belov T: +7 (495) 926-77-66 ext. 6445 evgenii.belov@severstal.com
Public Relations Anastasia Mishanina T: +7 (495) 926-77-66 ext. 6457 anastasia.mishanina@severstal.com
Severstal's financial communications agency - Hudson Sandler Andrew Leach / Emily Dillon T: +44 (0) 20 7796 4133
PАО Severstal is one of the world's leading vertically-integrated steel and steel related mining companies, with assets in Russia, Latvia and Poland. Severstal is listed on RTS and MICEX and the company's GDRs are traded on the LSE. Severstal reported revenue of $8,580 million and EBITDA of $3,142 million in 2018. Severstal's crude steel production in 2018 reached 12.0 million tonnes. www.severstal.com
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| ISIN: | US8181503025 |
| Category Code: | TST |
| TIDM: | SVST |
| LEI Code: | 213800OKDPTV6K4ONO53 |
| Sequence No.: | 23109 |
| EQS News ID: | 888559 |
| End of Announcement | EQS News Service |
UK Regulatory announcement transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement.