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PAO Severstal (SVST)
Severstal reports Q1 2019 operational results
12-Apr-2019 / 09:02 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 Q1 2019 operational results
Moscow, Russia - 12 April 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 Q1 2019.
Q1 2019 GROUP HIGHLIGHTS
· Hot metal output increased 6% q/q in Q1 2019 to 2.36 mln tonnes (Q4
2018: 2.23 mln tonnes) following short-term maintenance works at BF#2 in
the previous quarter. Crude steel production grew to 3.04 mln tonnes (Q4
2018: 2.94 mln tonnes) reflecting an increase in pig iron production and
production growth of EAF billets.
· Consolidated steel product sales increased 3% q/q to 2.83 mln tonnes in
Q1 2019 (Q4 2018: 2.76 mln tonnes), following short-term maintenance works
at rolling-mill facilities in the previous quarter and an increase in
productivity of aggregates. The share of domestic sales rose to 65% due to
their increased attractiveness of domestic sales (Q4 2018: 62%).
· The share of high value-added (HVA) products within the sales portfolio
remained flat at 44% (Q4 2018: 44%), driven by a decline in sales of
semi-finished products, which was offset by higher sales of galvanised,
colour coated and hot rolled thick plate.
· Coking coal concentrate sales volumes from Vorkutaugol declined 1% due
to long-wall repositionings at Vorgashorskaya, Zapolyarnaya and
Komsomolskaya mines, but remained at historically high levels reflecting
the high production rate.
· Iron ore pellet sales declined 4% to 2.83 mln tonnes (Q4 2018: 2.94 mln
tonnes) as a result of lower production volumes in Q1 2019 and a stock
sell-off in the previous quarter.
SUMMARY OF KEY PRODUCTION, SALES VOLUMES
Production, Q1 2019 Q4 2018 Change, % Q1 2019 Q1 2018 Change, %
thousands of
tonnes
Crude Steel 3,044 2,941 4% 3,044 3,033 0%
(Russian
Steel)
Hot metal 2,363 2,233 6% 2,363 2,347 1%
(Russian
Steel)
Sales Q1 2019 Q4 2018 Change, % Q1 2019 Q1 2018 Change, %
volumes,
thousands of
tonnes
Coking coal 1,031 1,043 (1%) 1,031 628 64%
concentrate
Iron ore 2,832 2,943 (4%) 2,832 2,377 19%
pellets
Iron ore 1,301 1,430 (9%) 1,301 1,292 1%
concentrate
Total steel 2,832 2,755 3% 2,832 2,864 (1%)
products
(Consolidate
d)
Total steel 2,843 2,766 3% 2,843 2,874 (1%)
products
(Russian
Steel)
High value Q1 2019 Q4 2018 Change, % Q1 2019 Q1 2018 Change, %
added steel
products, %
Severstal 44% 44% (0 ppts) 44% 45% (1 ppts)
(Consolidate
d)
Severstal 44% 44% (0 ppts) 44% 45% (1 ppts)
Russian
Steel
SEVERSTAL'S CONSOLIDATED SALES (NET OF INTERCOMPANY SALES)
Sales volumes, thousands Q1 2019 Q4 Change, Q1 Q1 Change,
of tonnes 2018 % 2019 201 %
8
Coal: 532 544 (2%) 532 404 32%
Coking coal 157 169 (7%) 157 46 n/a
concentrate
Steam coal 375 375 0% 375 358 5%
Iron ore: 1,656 2,12 (22%) 1,65 1,4 15%
8 6 41
Iron ore pellets 1,302 1,87 (30%) 1,30 1,1 10%
1 2 88
Iron ore 354 257 38% 354 253 40%
concentrate
Semi-finished 121 157 (23%) 121 256 (53%)
products
Rolled products: 2,311 2,18 6% 2,31 2,1 7%
5 1 66
Hot-rolled coil 1,102 1,01 8% 1,10 963 14%
7 2
Hot-rolled plate 233 210 11% 233 198 18%
Cold-rolled coil 275 296 (7%) 275 389 (29%)
Galvanised and 237 207 14% 237 198 20%
metallic coated
coil
Colour coated 102 97 5% 102 67 52%
coil
Long products 362 358 1% 362 351 3%
Downstream 400 413 (3%) 400 442 (10%)
products:
Metalware 126 136 (7%) 126 128 (2%)
products
Large diameter 97 107 (9%) 97 119 (18%)
pipes
Other tubes, 177 170 4% 177 195 (9%)
pipes, formed
shapes
SEVERSTAL RESOURCES
· Coking coal concentrate sales volumes from Vorkutaugol declined 1% q/q
due to long-wall repositionings at the Vorgashorskaya, Zapolyarnaya and
Komsomolskaya mines, but remained at historically high levels as a result
of high production rates. Internal coking coal concentrate remained almost
flat q/q as the Company maintained high level of sales to third parties
due to a favourable pricing environment in the local market.
· Steam coal sales at Vorkutaugol remained almost flat in Q1 2019 vs Q4
2018 but increased by 5% y/y, reflecting production growth.
· Iron ore pellet sales declined 4% to 2.83 mln tonnes (Q4 2018: 2.94 mln
tonnes) as a result of lower production volumes and stock sell-off in Q4
2018.
· Iron ore concentrate sales decreased 9% to 1.30 mln tonnes (Q4 2018:
1.43 mln tonnes) due to seasonal factors and short-term maintenance works.
Sales Q1 2019 Q4 2018 Change, % Q1 2019 Q1 2018 Change, %
volumes,
thousands of
tonnes
Coal: 1,406 1,417 (1%) 1,406 986 43%
Coking coal 1,031 1,043 (1%) 1,031 628 64%
concentrate
Steam coal 375 374 0% 375 358 5%
Iron ore: 4,133 4,373 (5%) 4,133 3,669 13%
Iron ore 2,832 2,943 (4%) 2,832 2,377 19%
pellets
Iron ore 1,301 1,430 (9%) 1,301 1,292 1%
concentrate
SEVERSTAL RUSSIAN STEEL ('RSD')
· RSD steel product sales increased 3% to 2.84 mln tonnes in Q1 2019
compared with the previous quarter (Q4 2018: 2.77 mln tonnes), following
short-term maintenance works at rolling-mill facilities in the previous
quarter and an increase in the productivity of aggregates. The share of
domestic sales rose to 65% due to the increased attractiveness of domestic
sales (Q4 2018: 62%).
· The share of high value-added (HVA) products within the sales portfolio
remained flat at 44% (Q4 2018: 44%), driven by a decline in sales of
semi-finished products and higher sales of galvanised, colour coated and
hot rolled thick plate.
· Severstal increased production of colour-coated and galvanised products
following the launch of new product lines, which reached their full
utilisation rates in Q1 2019.
· LDP sales volumes declined 9% q/q due to specific factors with the
product range at the Izhora Pipe Mill (IPM) where the utilisation rate
continued to remained high in Q1 2019. In February 2019 IPM has won
several tenders to supply PAO Gazprom with over 200,000 tonnes of large
diameter pipes. The products will be used in the development of gas
transmission capacities for the Unified Gas Supply System in the
North-West Region (NEGP), as well as the construction of the
Kovykta-Chayanda section of the Power of Siberia gas pipeline. Thick plate
sales increased 11% q/q.
· Average selling prices for the majority of steel products declined in Q1
2019 in line with global benchmarks.
Sales volumes, Q1 2019 Q4 Change, % Q1 2019 Q1 Change,
thousands of 2018 2018 %
tonnes
Total steel 2,843 2,766 3% 2,843 2,874 (1%)
products
Semi-finished 121 157 (23%) 121 256 (53%)
products
Rolled 2,322 2,194 6% 2,322 2,176 7%
products:
Hot-rolled coil 1,102 1,017 8% 1,102 963 14%
Hot-rolled 233 210 11% 233 198 18%
plate
Cold-rolled 275 296 (7%) 275 389 (29%)
coil
Galvanised and 237 207 14% 237 198 20%
metallic coated
coil
Colour coated 102 97 5% 102 67 52%
coil
Long products 373 367 2% 373 361 3%
Downstream 400 415 (4%) 400 442 (10%)
products:
Metalware 126 137 (8%) 126 128 (2%)
products
Large diameter 97 107 (9%) 97 119 (18%)
pipes
Other tubes, 177 171 4% 177 195 (9%)
pipes, formed
shapes
Sales price, Q1 2019 Q4 Change, % Q1 2019 Q1 Change,
$/tonne 2018 2018 %
Semi-finished 423 444 (5%) 423 428 (1%)
products
Hot-rolled coil 494 526 (6%) 494 551 (10%)
Hot-rolled 635 683 (7%) 635 741 (14%)
plate
Cold-rolled 592 611 (3%) 592 626 (5%)
coil
Galvanised and 709 735* (4%) 709 734 (3%)
metallic coated
coil
Colour coated 849 899 (6%) 849 899 (6%)
coil
Long products 449 452 (1%) 449 496 (9%)
Metalware 948 958 (1%) 948 1,013 (6%)
products
Large diameter 1,008 982 3% 1,008 1,284 (21%)
pipes
Other tubes, 568 561 1% 568 602 (6%)
pipes, formed
shapes
Notes:
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.
Contacts
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
***
P?? 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 [1]
ISIN: US8181503025
Category Code: TST
TIDM: SVST
LEI Code: 213800OKDPTV6K4ONO53
Sequence No.: 8188
EQS News ID: 799299
End of Announcement EQS News Service
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April 12, 2019 02:02 ET (06:02 GMT)
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