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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Evraz Plc | LSE:EVR | London | Ordinary Share | GB00B71N6K86 | ORD USD0.05 |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 82.68 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
Bitmns Coal Undergrnd Mining | 14.16B | 3.03B | 2.0799 | 0.40 | 1.21B |
TIDMEVR
RNS Number : 5365U
Evraz Plc
30 July 2020
EVRAZ Q2 2020 TRADING UPDATE
30 July 2020 - EVRAZ plc (LSE: EVR; "EVRAZ" or the "Group") today released its trading update for the second quarter of 2020.
Q2 2020 vs Q1 2020 HIGHLIGHTS
-- In Q2 2020, EVRAZ' consolidated crude steel output fell by 5.1% QoQ, mainly due to capital repairs and gas pause at EVRAZ ZSMK in June as well as capital repairs at EVRAZ NTMK in May .
-- Total sales of steel products rose by 4.9% QoQ. Sales of semi-finished products increased by 19.5% QoQ following change in the product mix in favour of slab and billets resulted from decline in demand for finished products during the COVID-19 pandemic.
-- Sales of finished products fell by 6.9% amid weak market demand in Russia and North America as well as due to lower production volumes in Russia following scheduled capital repairs.
-- Total raw coking coal production decreased by 26 .8% QoQ, driven by weaker demand for coal on global markets . Production at the Razrez Raspadsky open pit and at Mezhegeyugol has been suspended until favourable market conditions are restored. The decline was also due the move of the longwall at the Alardinskaya mine.
-- External sales volumes of coking coal products dropped by 14 . 6 % QoQ, caused by lower shipments to Europe amid unfavourable market conditions.
-- External sales of iron ore products jumped by 25.6% QoQ amid higher shipments to the domestic market in Q2 2020.
-- Sales of vanadium products fell by 22.6% QoQ mainly due to lower steel utilisation rates as well as general decrease of vanadium demand following COVID 19 restrictions. The regional sales and product mix was changed to serve the more active Chinese oxide market during Q2 2020.
Product, '000 tonnes Q2 Q1 Q2 2020/ Q1 2020, change H1 H1 H1 2020/ H1 2019, change 2020 2020 2020 2019 ---------------------------- ------- ------- ------------------------- ------- ------- ------------------------- Total crude steel production 3,377 3,559 -5.1% 6,936 6,986 -0.7% Russia 2,992 3,121 -4.1% 6,113 5,99 2 2.0% North America 385 438 -12.1% 823 994 -17.2% Total raw coking coal mined 4,165 5,692 -26.8% 9,857 13,840 -28.8% Total coking coal concentrate production 3,820 3,747 1.9% 7,567 8,142 -7.1% Iron ore products production 3,460 3,595 -3.8% 7,055 7,169 -1.6% Total sales of steel products 3,382 3,224 4.9% 6,605 6,510 1.5% Semi-finished products (1) 1,724 1,443 19.5% 3,167 2,702 17.2% Finished products (1, 2) 1,658 1,781 -6.9% 3,438 3,808 -9.7% Total sales of third-party steel products 197 175 12.6% 372 376 -1.1% Sales of coking coal products 2,800 3,278 -14.6% 6,079 5,585 8.8% Sales of iron ore products 446 355 25.6% 801 699 14.6% Sales of vanadium in slag 1,996 765 n/a 2,761 2,836 -2.6% Sales of vanadium final products (3) 2,450 3,168 -22.6% 5,618 5,784 -2.9% ---------------------------- ------- ------- ------------------------- ------- ------- -------------------------
Note. Numbers in this table and the tables below may not add up to totals due to rounding.
(1) The Q1 2020 data have been adjusted
(2) The H1 2019 data have been adjusted
(3) In tonnes of pure vanadium
STEEL SEGMENT
Total production volumes
Product, '000 tonnes Q2 2020 Q1 2020 Q2 2020/ Q1 2020, H 1 2020 H1 2019 H1 2020/ H1 2019, change change ------------------------- -------- -------- ------------------------ --------- -------- ------------------------ Pig iron production 2,792 2,828 -1.3% 5,620 5,457 3.0% EVRAZ ZSMK 1,532 1,556 -1.5% 3,088 3,001 2.9% EVRAZ NTMK 1,260 1,272 -0.9% 2,532 2,456 3.1% Crude steel production 2,992 3,121 -4.1% 6,113 5,992 2.0% EVRAZ ZSMK 1,878 1,980 -5.2% 3,858 3,837 0.5% EVRAZ NTMK 1,114 1,141 -2.4% 2,255 2,155 4.6% Total steel products production, net of re-rolled volume(1) 2,739 2,867 -4.5% 5,606 5,381 4.2% EVRAZ ZSMK 1,657 1,743 -4.9% 3,401 3,423 -0.6% EVRAZ NTMK 994 1,032 -3.7% 2,025 1,638 23.6% EVRAZ Caspian Steel 88 92 -3.9% 180 122 47.5% Iron ore products production 3,460 3,595 -3.8% 7,055 7,169 -1.6% Pellets (EVRAZ KGOK) 1,616 1,665 -2.9% 3,281 3,216 2.0% Sinter (EVRAZ KGOK) 905 916 -1.2% 1,821 1,826 -0.3% Concentrate saleable (EVRAZ KGOK, Evrazruda) 939 1,014 -7.4% 1,953 2,127 -8.2% Coking coal concentrate production 496 486 2.1% 982 943 4.1% From own raw coal(2) 480 350 37.1% 830 597 39.0% From third-party raw coal 16 136 -88.2% 152 346 -56.1% Gross vanadium slag production(3) 5,098 4,979 2.4% 10,077 8,979 12.2% ------------------------- -------- -------- ------------------------ --------- -------- ------------------------
Note. Numbers in this table and the tables below may not add up to totals due to rounding.
(1) Including EVRAZ Palini e Bertoli which was sold in Q4 2019.
(2) From Coal segment
(3) In tonnes of pure vanadium
In Q2 2020, pig iron production remained almost flat QoQ at the Russian mills.
Crude steel output decreased by 4.1% QoQ, mainly due to capital repairs and gas pause at EVRAZ ZSMK in June as well as capital repairs at EVRAZ NTMK in May.
Total output of steel products fell by 4.5% QoQ mainly due to lower crude steel availability at EVRAZ NTMK and EVRAZ ZSMK. EVRAZ Caspian Steel reduced production by 3.9% QoQ due to lower demand from customers.
Output of iron ore products fell by 3.8% QoQ, mainly due to a decrease in primary concentrate production volumes and the degree of fluxing at mining operations of EVRAZ ZSMK (former Evrazruda).
Total sales volumes
Product, '000 tonnes Q2 2020 Q1 Q1 2020/ Q4 2019, change H1 H1 H1 2020/ H1 2019, change 2020 2020 2019 ------------------------ -------- ---------- ------------------------- ------- ------- ------------------------- Coke 81 105 -22.4% 186 178 4.5% Steel products, external sales 2,921 2,707 7.9% 5 628 5 353 5.1% Semi-finished products 1,670 1,353 23.4% 3 023 2 572 17.5% Slabs 737 570 29.2% 1 307 1 054 24.0% Billets 820 656 25.0% 1 475 1 191 23.8% Other steel products (1) 114 128 -10.8% 241 327 -26.3% Finished products(2) 1,251 1,353 -7.6% 2 604 2 780 -6.3% Construction products 783 839 -6.6% 1 621 1 593 1.8% Railway products 311 358 -13.0% 669 710 -5.8% Flat products 0 0 n/a 0 189 -100.0% Other steel products 157 157 -0.2% 314 288 9.0% Steel products, inter-segment sales 3 40 -91.7% 44 301 -85.4% Third-party steel products, external sales 197 175 12.6% 372 376 -1.1% Iron ore products, external sales 446 355 25.6% 801 699 14.6% Pellets 446 355 25.6% 801 699 14.6%
Sales of vanadium in slag 1,996 765 n/a 2 761 2 836 -2.6% Sales of vanadium final products (3) 2,450 3,168 -22.6% 5 618 5 784 -2.9% ------------------------ -------- ---------- ------------------------- ------- ------- -------------------------
Note. Numbers in this table and the tables below may not add to totals due to rounding.
(1) Includes tonnes of pig iron
(2) EVRAZ Palini e Bertoli was sold in Q4 2019
(3) In tonnes of pure vanadium
In Q2 2020, external sales of steel products increased by 7.9% QoQ. Sales of semi-finished products climbed by 23.4% QoQ, due to a change in the product mix to higher slab and billets sales volumes and a decrease in the volumes of finished products due to market conditions during the COVID-19 pandemic.
Sales of finished products dropped by 7.6% QoQ due worsening market conditions during the pandemic as well as lower production volumes amid scheduled capital repairs at EVRAZ ZSMK and EVRAZ NTMK.
Sales of iron ore products surged by 25.6% QoQ amid higher shipments to the domestic market in Q2 2020.
Sales of vanadium products fell by 22.6% QoQ mainly due to lower steel utilisation rates as well as general decrease of vanadium demand following COVID 19 restrictions. The regional sales and product mix was changed to serve the more active Chinese oxide market during Q2 2020.
Cash cost, US$/t Q2 Q1 Q2 2020 / Q1 2020, change H1 H1 H1 2020 / H1 2019, change 2020 2020 2020 2019 -------------------------- ------ ------ -------------------------- ------- ------- -------------------------- Slab cash cost vertically integrated 198 223 -11% 210 230 -9% Iron ore products (Fe 62%) 38 38 0% 38 38 0% -------------------------- ------ ------ -------------------------- ------- ------- --------------------------
Average selling prices
US$/tonne (exworks) Q2 Q1 H1 H1 2020 2020 2020 2019 ------------------------------------------------------------------------------ -------- -------- -------- -------- Coke 148 167 159 233 Steel products 401 477 438 494 Semi-finished products(1) 296 346 319 387 Construction products 441 505 474 544 Railway products 812 925 873 753 Other steel products 490 509 500 596 Pellets 47 54 49 77 Metal Bulletin Ferro-Vanadium basis 78% min, free DDP, consumer plant, 1st grade Western Europe(2) 24 . 94 26 . 54 25 . 74 56 . 35 Ryan's Notes N.A. FeV 80% min, US ex-warehouse, duty paid(2) 23 . 28 27 . 18 25 . 23 67 . 87 ------------------------------------------------------------------------------ -------- -------- -------- --------
(1) Includes prices for pig iron
(2) US$/kgV
During Q3 2020, pig iron production volumes are expected to decrease following ramp-up of blast furnace no.6, which will replace blast furnace no.5 at EVRAZ NTMK in July-August.
Iron ore pellets production volumes are expected to remain flat, while sinter production is expected to decrease due to capital repairs at EVRAZ KGOK's sinter plant in July - September 2020.
STEEL, NORTH AMERICA SEGMENT
Production and sales volumes
Product, '000 tonnes Q2 Q1 2020 Q2 2020/ H1 2020 H1 H1 2020/ H1 2019, change 2020 Q1 2020, change 2019 ---------------------------------- ------ -------- ----------------- -------- ------ ------------------------- Crude steel 385 438 -12.1% 823 994 -17.2% EVRAZ US mills 210 251 -16.3% 461 486 -5.1% EVRAZ Canadian mills 175 188 -6.9% 363 508 -28.5% Total steel products production, net of re-rolled volume (1) 461 486 -5.1% 947 1 163 -18.6% EVRAZ US mills 300 336 -10.7% 636 735 -13.5% EVRAZ Canadian mills 161 150 7.3% 311 428 -27.3% Sales of steel products 457 517 -10.9% 978 1 158 -15.5% Semi-finished products (1) 54 90 -39.8% 144 130 10.8% Construction products 68 66 2.5% 133 136 -2.2% Railway products (1, 2) 107 106 1.7% 213 223 -4.5% Flat-rolled products (1) 69 100 -31.1% 169 282 -40.1% Tubular products (1) 163 156 4.5% 319 387 -17.6% ---------------------------------- ------ -------- ----------------- -------- ------ ------------------------- (1) The Q1 20 20 data have been adjusted (2) The H 1 20 19 data have been adjusted
In Q2 2020, crude steel production was 1 2 . 1 % lower QoQ, mainly attributable to falling demand across North American steel markets amid the COVID-19 pandemic and uncertainty driven by oil prices turmoil. In addition, production was affected by the shutdown of Regina Steel, which extended into early Q2 2020 with the advancement of a planned maintenance outage following the March 2020 cyber-attack.
Total output of steel products decreased by 5.1%, mainly driven by reduced demand for flat-rolled products from distributors adjusting to swift market changes brought on by the pandemic during the period and rapid deterioration of the energy markets in North America halting OCTG demand.
Canadian mills increased production by 7.3% QoQ due to higher large diameter (LD) and line pipe (LP) production following downtime in March triggered by the cyberattack and improved operational performance. This was partially offset by lower Canadian OCTG production due to the fall in market demand in wake of sharply reduced oil prices. Lower rig counts in Western Canada resulted in sharp reductions in demand, and the idling of pipe mills in Calgary, Red Deer and Camrose in Q2 2020.
US mills decreased production by 10.7% QoQ due to declined flat-rolled orders at EVRAZ Portland and OCTG orders at Pueblo Seamless. Similar to the Canadian OCTG mills, Pueblo Seamless volumes were also affected by oil price reductions, which resulted in the idling of the Seamless mill in early Q2 2020.
Semi-finished product sales fell by 39.8% following successful fulfilment of a contract with a key customer.
Flat-rolled product sales dropped by 31.1% QoQ as a result of weakening market demand.
Sales volumes of tubular products climbed by 4.5% QoQ, driven by the Canadian LD and LP production increases during the period relative to Q1 2020. Railway and construction products demand remained stable QoQ.
Prices for construction products decreased 4.7% QoQ, driven by lower scrap costs. Prices for tubular products rose driven primarily by a mix of orders, while prices for flat-rolled products remained unchanged on average.
Average selling prices
US$/tonne (ex-works) Q2 Q1 H1 H1 2020 2020 2020 2019 ------------------------ ------ ------ ------ ------ Construction products* 681 715 698 808 Flat-rolled products* 891 904 899 999 Tubular products* 1 479 1 350 1 416 1 353 ------------------------ ------ ------ ------ ------
* The Q1 2020 data have been adjusted
In Q3 2020, significant uncertainty remains around production and sales volumes for all product groups due to continued turmoil in the oil & gas markets and the slow economic recovery during the resurgent COVID-19 pandemic, leaving North American customers cautious in purchasing strategies.
COAL SEGMENT
Production volumes
Product, '000 tonnes Q2 Q1 Q2 2020/ Q1 2020, change H1 2020 H1 H1 2020/ H1 2019, change 2020 2020 2019 ----------------------------- ------ ------ ------------------------- -------- ------- ------------------------- Raw coking coal (mined) 4,165 5,692 -26.8% 9,857 13,840 -28.8% Yuzhkuzbassugol 2,053 2,704 -24.1% 4, 757 6,072 -21.7% Raspadskaya 2,112 2,952 -28.5% 5,064 7,147 -29.1% Mezhegeyugol 0 36 -100.0% 36 621 -94.2% Coking coal concentrate (production) 3,324 3,261 1.9% 6,585 7,198 -8.5% Produced at Yuzhkuzbassugol coal washing plants 1,328 1,411 -5.9% 2,739 3,270 -16.2% Produced at the Raspadskaya coal washing plant 1,996 1,850 7.9% 3,846 3,928 -2.1% ----------------------------- ------ ------ ------------------------- -------- ------- -------------------------
In Q2 2020, overall raw coking coal output fell by 26.8% QoQ, primarily due to weaker market demand as well as lower production at the Razrez Raspadsky open pit and Mezhegeyugol, following the decision to suspend output due to unfavourable market conditions as well as the completion of a mining at longwall at the Raspadskaya mine.
Production at Yuzhkuzbassugol went down by 28.5% QoQ mainly due to the longwall move at the Alardinskaya mine.
Output of coking coal concentrate rose by 1.9% QoQ as Raspadskaya coal washing plant processed additional volumes of raw coal from the stockpiles in order to offset lower production at Yuzhkuzbassugol coal washing plants.
Sales volumes
Product, '000 tonnes Q2 Q1 Q2 2020/ Q1 2020, change H1 H1 H1 2020/ H1 2019, change 2020 2020 2020 2019 --------------------------- ------ ------ ------------------------- ------ ------ ------------------------- External sales 2,800 3,278 -14.6% 6,079 5,586 8.8% Raw coking coal 492 707 -30.4% 1,198 944 26.9% Coking coal concentrate 2,309 2,572 -10.2% 4,880 4,642 5.1% Intersegment sales 1,880 1,624 15.8% 3,503 3,169 10.5% Raw coking coal 712 492 44.9% 1,204 952 26.5% Coking coal concentrate 1,167 1,132 3.1% 2,300 2,217 3.7% --------------------------- ------ ------ ------------------------- ------ ------ -------------------------
In Q2 2020, external sales volumes of coking coal products declined by 14.6% QoQ. Raw coking coal sales volumes fell by 30.4% QoQ, following lower shipments to Europe due to unfavourable market conditions. Coking coal concentrate sales volumes decreased by 10.2% QoQ, attributable to lower shipments and partly offset by stable demand in Russia and on the Chinese spot market.
Cash cost, US$/t Q2 Q1 Q1 2020 / Q4 2019, change H1 H1 Q1 2020 / Q1 2019, change 2020 2020 2020 2019 ------------------------- ------ ------ -------------------------- ------ ------ -------------------------- Coking coal concentrate 34 33 3% 34 34 0% ------------------------- ------ ------ -------------------------- ------ ------ --------------------------
Average selling prices
Q2 Q1 H1 H1 US$/tonne (ex works) 2020 2020 2020 2019 ------------------------- ------ ------ ------ ------ Raw coking coal 39 33 36 59 Coking coal concentrate 65 70 67 110 ------------------------- ------ ------ ------ ------
In Q2 2020, coking coal selling prices moved in line with global benchmarks.
In Q3 2020, raw coal production is expected to increase QoQ due to the completion of the longwalls move at the Esaulskaya, Alardinskaya, Osinnikovskaya and Uskovskaya mines in Q2 2020.
Notes:
Semi-finished products include slabs, billets, pipe blanks and other semi-finished products.
Construction products include beams, channels, angles, rebars, wire rods, wire and other construction products.
Railway products include rails, wheels, tyres and other railway products.
Flat-rolled products include commodity plate, specialty plate and other flat products.
Tubular products include large-diameter line pipes, ERW pipes and casings, seamless pipes and other tubular products.
Other steel products include rounds, grinding balls, mine uprights, strips, etc.
###
For further information:
Media Relations:
+7 495 937 6871
media@evraz.com
Investor Relations:
+7 495 232 1370
ir@evraz.com
EVRAZ is a vertically integrated steel, mining and vanadium business with operations in Russia, Kazakhstan, the US, Canada and Czech Republic. EVRAZ is among the top steel producers in the world based on crude steel production of 14 million tonnes in 2019. A significant portion of the Group's internal consumption of iron ore and coking coal is covered by its mining operations. The Group's consolidated revenues for the year ended 31 December 2019 were US$11,905 million, and consolidated EBITDA amounted to US$2,601 million.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
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