Metalloinvest ("Company"), a leading manufacturer and supplier of iron ore products and hot-chicted iron (GBZ) on the world market, one of the regional manufacturers of high-quality steel, today announces audited financial results for IFRS for 2020
Management comments
Nazim Efendiev, General Director of the Metalloinvest Management Company commented:"In 2020, the company's strategy aimed at improving the quality of products and ensuring a stable sales has demonstrated its stability. Despite the external challenges, the company showed good financial results.
The main event of the past year was the Pandemic COVID-19, and the company adopted a number of measures aimed at ensuring the security of not only their employees, but also all residents of the regions of the presence. Extensively deployed extensive assistance programs for medical institutions, twice the wage indexing of employees was carried out.
Continuing the focus on sustainable development, in February of this year the company presented a strategy of qualitative changes, calculated until 2032. Mission of Metalloinvest is to be the basis of the evolution of modern metallurgy for future generations. We see our company by the world leader in the production of high-quality iron ore, metallized and steel products, which is the basis of the movement of the metallurgical industry towards the introduction of "green" technologies and a reduction in carbon trace. "
Alexey Voronov, Deputy General Director for Finance and Economics of the Metalloinvest Management Company, added:
"Following the results of 2020, the company's EBITDA amounted to $ 2.5 billion, having changed slightly compared to last year. The company's efforts were largely aimed at optimizing costs, which ensured the growth of EBITDA profitability to 38.5% from 36.1% a year earlier. Separately, it is worth noting the contribution of the fourth quarter to the results of the year - EBITDA amounted to $ 838 million, which became the best quarterly company's indicator over the past 8 years. We expect a favorable market conjuncture and early 2021.
Significant work is done in terms of decline in debt load, optimizing the parameters of the company's loan portfolio and expanding liquidity sources. Thus, in 2020, about $ 260 million were aimed at repaying the debt, several refinancing transactions were implemented, including at the expense of successful public borrowings on the local market at record low rates, new credit lines were opened. As a result, the company's total debt decreased by 9.5% to 3.7 billion dollars, and repayment of 2021-2022. Make up 0.5 billion dollars, which is fully ensured by the existing liquidity volume. An indicator of net debt / EBITDA at the end of 2020 amounted to 1.3x, which is a comfortable level for the implementation of the investment program in full. "
FINANCIAL RESULTS
o revenue 6,409 million dollars (-7.9%)
o EBITDA $ 2,471 million (-1.7%)
o Profitability EBITDA 38.5% versus 36.1% in 2019
o net profit 1 337 million dollars (-22.8%)
o total debt $ 3,675 million (-9.5% compared to December 31, 2019)
o Clean debt / EBITDA 1.3x versus 1.5x as December 31, 2019
o Capital Costs of $ 496 million (-4.0%)
Production results
o iron ore 40.4 million tons (+ 0.5%)o pellets 27.6 million tons (-1.8%)
O GBJ / PVA 7.8 million tons (-0.9%)
o cast iron 2.3 million tons (-16.3%)
o steel 5.0 million tons (+ 2.0%)
Key corporate events
Operating activities and capital costs
o Commissioning MNLZ number 3 on OEMK after the completion of technical re-equipment
o Modernization of the processing factory for meal to increase the production of concentrate
o Reconstruction Om-3 for MILK for the introduction of advanced technology of additional grinding of concentrate
o Mgok began an experienced production of premium pellets under metallization
o OEMC ended overhaul by the fuggling machine, a new sharp robbed mill was launched
o for megok introduced advanced conveyor technology for transporting ore from the career with a capacity of 15 million tons of ore per year
o The Ural Steel launched new steam boilers CHP
o After technical re-equipment, a domain furnace №2 was commissioned on the Ural Steel
Financial activities
o Receiving a new credit rating from AKRA at the level "AA + (RU)" with a stable forecast
o Confirmation of the credit rating from the international credit rating agency Fitch at the BB + level with a stable forecast
o Accommodation in the open subscription of ruble bonds of the BO-04 series and BO-10 in the amount of 15 billion rubles.
o Extending two current reserve credit lines in an Ing Bank totaling $ 200 million (or equivalent in euros), the interest rate on one of the lines in the amount of $ 100 million remains binding to a change in ESG-rating Ecovadis
o Binding the current line of pre-export funding PXF-2019/2 to key performance indicators for sustainable development
o Opening of new long-term credit lines in Sberbank (25 billion rubles), Gazprombank (15 billion rubles), ICD (7 billion rubles) and MBS (40 million euros) with maturity of 3-7 years