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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 : 8792R
Evraz Plc
01 November 2019
EVRAZ Q3 2019 TRADING UPDATE
1 November 2019 - EVRAZ plc (LSE: EVR; "EVRAZ" or the "Group") today released its trading update for the third quarter of 2019.
Q3 2019 vs Q2 2019 HIGHLIGHTS
-- In Q3 2019, EVRAZ' consolidated crude steel output decreased by 3.4% QoQ, mainly due to lower production volumes at EVRAZ ZSMK amid scheduled capital repairs. Production was also impacted by reduced output at EVRAZ' US and Canadian mills following scheduled downtimes and by weaker demand.
-- Total steel product sales remained flat QoQ. Sales of semi-finished products increased by 5.6% QoQ due to better market conditions. This was partly offset by a 3.1% QoQ drop in finished products due to lower sales of flat-rolled products (decreased production at EVRAZ Palini e Bertoli as well as weaker demand from service centres at North America) and railway products (capital repairs at EVRAZ ZSMK and EVRAZ NTMK).
-- Production of raw coking coal decreased by 9.7% QoQ mainly following the decision to reduce production at the Razrez Raspadsky open-pit as a response to substantial accumulated stockpiles of raw coal.
-- External sales volumes of coking coal products remained flat QoQ.
-- External sales of iron ore products descended by 73 kt (31.1%) QoQ as production volumes of pellets were down amid capital repairs at EVRAZ KGOK's roasting machine no. 2.
-- Sales of final vanadium products rose by 9.8% QoQ, mainly due to increased demand in China. This was a result of robust infrastructure sector development, as well as ferrovanadium re-stocking in the rest of the world due to lower prices.
Q3 2019/ Q2 2019, Product, kt Q3 2019 Q2 2019 change 9m 2019 9m 2018 9m 2019/ 9m 2018, change ------------------------- -------- -------- ------------------------ -------- -------- ------------------------- Total crude steel production 3,380 3,498 -3.4% 10,366 9,917 4.5% Russia 2,953 3,006 -1.8% 8,945 8,368 6.9% Ukraine 0 0 n/a 0 154 -100.0% North America 427 492 -13.2% 1,421 1,395 1.9% Total raw coking coal mined 6,319 6,996 -9.7% 20,159 17,335 16.3% Total coking coal concentrate production 4,244 4,458 -4.8% 12,386 11,967 3.5% Iron ore products production 3,319 3,533 -6.1% 10,488 10,148 3.4% Total sales of steel products(1) 3,385 3,371 0.4% 9,893 9,328 6.1% Semi-finished products(2,3) 1,443 1,367 5.6% 4,146 3,726 11.3% Finished products(3) 1,942 2,004 -3.1% 5,747 5,602 2.6% Total sales of third-party steel products(3) 225 196 14.8% 601 672 -10.6% Sales of coking coal products 2,953 2,929 0.8% 8,539 8,244 3.6% Sales of iron ore products(2) 162 235 -31.1% 861 1,514 -43.1% Sales of vanadium in slag(2) 1,693 1,660 2.0% 4,528 4,760 -4.9% Sales of vanadium final products(4) 3,585 3,266 9.8% 9,369 9,693 -3.3% ------------------------- -------- -------- ------------------------ -------- -------- -------------------------
Note. Numbers in this table and the tables below may not add up to totals due to rounding
(1) Q3 2019 production and sales volumes of EVRAZ North America are preliminary
(2) 9m 2018 data has been adjusted
(3) Q2 2019 data has been adjusted
(4) in tonnes of pure vanadium
CONFERENCE CALL DETAILS
A conference call to discuss the trading update will be held on Friday, 1 November 2019, at:
-- 1 pm (London time) -- 4 pm (Moscow time) -- 9 am (New York time)
Key speakers:
-- Ilya Shirokobrod, Vice President, Sales and Logistics -- Alexander Erenburg, Vice President, Head of the Vanadium Division -- Sergey Stepanov, Vice President, Head of the Coal Division -- Alexander Vasiliev, Chief Financial Officer, EVRAZ North America
To join the call, please dial:
+44 (0)330 336 9125 UK +7 495 213 1767 Russia +1 646-828-8193 US
Conference ID: 7150635
To avoid any technical inconvenience, it is recommended that participants dial in 10 minutes before the start of the call.
The Q3 2019 Trading update presentation will be available on the Group's website, www.evraz.com, on Friday, 1 November 2019, at the following link:
https://www.evraz.com/en/investors/reports-and-results/presentations/#2019
FORWARD-LOOKING STATEMENTS
This document contains "forward-looking statements", which include all statements other than statements of historical facts, including, without limitation, any statements preceded by, followed by or that include the words "targets", "believes", "expects", "aims", "intends", "will", "may", "anticipates", "would", "could" or similar expressions or the negative thereof. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the Group's control that could cause the actual results, performance or achievements of the Group to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements, including, among others, the achievement of anticipated levels of profitability, growth, cost and synergy of recent acquisitions, the impact of competitive pricing, the ability to obtain necessary regulatory approvals and licenses, the impact of developments in the Russian economic, political and legal environment, volatility in stock markets or in the price of the Group's shares or GDRs, financial risk management and the impact of general business and global economic conditions. Such forward-looking statements are based on numerous assumptions regarding the Group's present and future business strategies and the environment in which the Group will operate in the future. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. These forward-looking statements speak only as at the date as of which they are made, and each of EVRAZ and the Group expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in EVRAZ' or the Group's expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based. Neither the Group, nor any of its agents, employees or advisors intends or has any duty or obligation to supplement, amend, update or revise any of the forward-looking statements contained in this document.
STEEL SEGMENT
Total production volumes
Q3 2019/ Q2 2019, Product, kt Q3 2019 Q2 2019 change 9m 2019 9m 2018 9m 2019/ 9m 2018, change ------------------------- -------- -------- ------------------------ -------- -------- ------------------------- Pig iron production 2,795 2,745 1.8% 8,252 7,645 7.9% EVRAZ ZSMK 1,516 1,530 -0.9% 4,517 4,105 10.0% EVRAZ NTMK 1,279 1,215 5.3% 3,735 3,386 10.3% EVRAZ DMZ 0 0 n/a 0 153 -100.0% Crude steel production 2,953 3,006 -1.8% 8,945 8,522 5.0% EVRAZ ZSMK 1,866 1,942 -3.9% 5,703 5,357 6.5% EVRAZ NTMK 1,087 1,064 2.2% 3,242 3,011 7.7% EVRAZ DMZ 0 0 n/a 0 154 -100.0% Total steel products production, net of re-rolled volume 2,766 2,759 0.3% 8,147 7,580 7.5% EVRAZ ZSMK 1,624 1,737 -6.5% 5,047 4,839 4.3% EVRAZ NTMK 969 844 14.8% 2,607 2,213 17.8% EVRAZ DMZ 0 0 n/a 0 132 -100.0% EVRAZ Palini e Bertoli 88 101 -12.9% 286 266 7.5% EVRAZ Caspian Steel 86 77 11.7% 207 130 59.2% Iron ore products production 3,319 3,533 -6.1% 10,488 10,148 3.4% Pellets (EVRAZ KGOK) 1,456 1,573 -7.4% 4,672 4,938 -5.4%
Sinter (EVRAZ KGOK) 883 928 -4.8% 2,709 2,633 2.9% Concentrate (EVRAZ KGOK, Evrazruda) 980 1,032 -5.0% 3,107 2,577 20.6% Coking coal concentrate production 511 489 4.5% 1,454 1,538 -5.5% From own raw coal(1) 407 341 19.4% 1,004 922 8.9% From third-party raw coal 104 148 -29.7% 450 616 -26.9% Gross vanadium slag production(2) 4,734 4,533 4.4% 13,713 12,675 8.2% ------------------------- -------- -------- ------------------------ -------- -------- -------------------------
Note. Numbers in this table and the tables below may not add up to totals due to rounding.
(1) from Coal segment
(2) in tonnes of pure vanadium
In Q3 2019, EVRAZ` pig iron output rose by 1.8% QoQ, mainly following the completion of capital repairs in April at EVRAZ NTMK's blast furnace no. 5.
Crude steel production volumes fell by 1.8% QoQ, primarily due to scheduled capital repairs in July-August 2019 at EVRAZ ZSMK.
Total output of steel products remained almost flat QoQ, with a 14.8% QoQ increase in production volumes at EVRAZ NTMK due to lower re-rolled volumes of slabs at the Steel, North America segment. EVRAZ Caspian Steel boosted production by 11.7% following higher demand from customers. This was partly offset by production at EVRAZ Palini e Bertoli going down by 12.9% due to unscheduled downtime in August 2019.
Iron ore products output fell by 6.1% QoQ, mainly due to capital repairs in August-September 2019 at EVRAZ KGOK's roasting machine no. 2.
Total sales volumes
Product, kt Q3 Q2 2019 Q3 2019/ Q2 2019, change 9m 2019 9m 2018 9m 2019/ 9m 2018, change 2019 ------------------------- ------- -------- ------------------------- -------- -------- ------------------------- Coke 93 113 -17.7% 271 318 -14.8% Steel products, external sales(2) 2,847 2,770 2.8% 8,200 7,757 5.7% Semi-finished products 1,398 1,293 8.1% 3,971 3,700 7.3% Slabs 669 572 17.0% 1,724 1,377 25.2% Billets 562 545 3.1% 1,752 1,943 -9.8% Other steel products(1) 167 176 -5.1% 495 379 30.6% Finished products(2) 1,448 1,477 -2.0% 4,229 4,057 4.2% Construction products(2) 883 864 2.2% 2,476 2,367 4.6% Railway products 314 367 -14.4% 1,025 1,010 1.5% Flat products 79 98 -19.4% 269 263 2.3% Other steel products(2) 172 148 16.2% 461 417 10.6% Steel products, inter-segment sales 27 115 -76.5% 328 423 -22.5% Third-party steel products, external sales(2) 225 196 14.8% 601 672 -10.6% Iron ore products, external sales 162 235 -31.1% 861 1,514 -43.1% Pellets 162 235 -31.1% 861 1,514 -43.1% Sales of vanadium in slag(3) 1,693 1,660 2.0% 4,528 4,760 -4.9% Sales of vanadium final products(4) 3,585 3,266 9.8% 9,369 9,693 -3.3% ------------------------- ------- -------- ------------------------- -------- -------- -------------------------
Note. Numbers in this table and the tables below may not add to totals due to rounding.
(1) includes tonnes of pig iron
(2) Q2 2019 data has been adjusted
(3) 9m 2018 data has been adjusted
(4) in tonnes of pure vanadium
In Q3 2019, external sales of steel products were up 2.8% QoQ. Sales of semi-finished products rose by 8.1% QoQ, primarily due to better market conditions.
Sales of finished products fell by 2% QoQ. Sales of railway products were down 14.4% QoQ amid capital repairs at EVRAZ NTMK's rail and beam mill and EVRAZ ZSMK's electric-arc furnace shop. In addition, sales of flat-rolled products dropped by 19.4% QoQ, primarily due to a decline in production volumes at EVRAZ Palini e Bertoli.
Inter-segment sales declined by 76.5% QoQ due to lower sales of slabs to the Steel, North America segment following a decline in demand from customers.
Sales of iron ore products fell by 31.1% QoQ after a reduction in pellet production volumes due to capital repairs in August-September at EVRAZ KGOK's roasting machine no. 2.
Sales of final vanadium products rose by 9.8% QoQ, mainly due to increased demand in China. This was the result of robust infrastructure sector development, as well as ferrovanadium re-stocking in the rest of the world due to lower prices.
Cash cost, US$/t Q3 Q2 2019 Q3 2019/ Q2 2019, change 9m 9m 9m 2019/ 9m 2018, change 2019 2019 2018 ----------------------------- ------- -------- ------------------------- ------ ------ ------------------------- Slab cash cost vertically integrated 241 238 1.3% 234 235 -0.4% Iron ore products (Fe 62%)* 41 40 2.5% 39 36 8.3% ----------------------------- ------- -------- ------------------------- ------ ------ -------------------------
* Q2 2019 data has been adjusted
Average selling prices
9m 9m US$/t (ex works) Q3 2019 Q2 2019 2019 2018 -------------------------------------------------------------- -------- -------- ------ ------ Coke 214 240 225 229 Steel products** 480 507 489 548 Semi-finished products* 341 392 371 464 Construction products** 557 563 548 598 Railway products 842 763 780 693 Other steel products 579 598 590 638 Pellets 76 81 77 64 Metal Bulletin Ferro-Vanadium basis 78% min, free DDP, consumer plant, 1st grade Western Europe*** 30.72 39.36 47.80 72.17 Ryan's Notes N.A. FeV 80% min, US ex-warehouse, duty paid*** 34.93 47.81 56.89 75.50 -------------------------------------------------------------- -------- -------- ------ ------
* includes prices for pig iron
** Q2 2019 data has been adjusted
*** US$/kgV
In Q4 2019, pig iron production volumes are expected to edge down QoQ due to capital repairs in October at EVRAZ NTMK's blast furnace no. 5. This will be partly offset by a QoQ uptick in pig iron production volumes following completion of capital repairs in July-August 2019 at EVRAZ ZSMK.
STEEL, NORTH AMERICA SEGMENT
Production and sales volumes*
Q3 2019/ Q2 2019, Product, kt Q3 2019 Q2 2019 change 9m 2019 9m 2018 9m 2019/ 9m 2018, change ------------------------- -------- -------- ------------------------ -------- -------- ------------------------- Crude steel 427 492 -13.2% 1,421 1,395 1.9% EVRAZ US mills 223 251 -11.2% 709 678 4.6% EVRAZ Canadian mills 204 241 -15.4% 712 716 -0.6% Total steel products production, net of re-rolled volume 535 605 -11.6% 1,698 1,616 5.1% EVRAZ US mills 352 384 -8.3% 1,087 1,007 7.9% EVRAZ Canadian mills 183 220 -16.8% 611 609 0.3% Sales of steel products 539 601 -10.3% 1,693 1,571 7.8% Semi-finished products 45 74 -39.2% 175 26 n/a Construction products 66 69 -4.3% 202 213 -5.2% Railway products 106 122 -13.1% 329 304 8.2% Flat-rolled products 128 141 -9.2% 409 442 -7.5%
Tubular products 194 195 -0.5% 578 586 -1.4% ------------------------- -------- -------- ------------------------ -------- -------- -------------------------
*Q3 2019 production and sales volumes data is preliminary
In Q3 2019, crude steel production dropped by 13.2% QoQ. The reduction was made at EVRAZ Regina facility in anticipation of weaker demand for both OCTG and line pipe in the upcoming months, as well as by lower production at EVRAZ Pueblo, which came as a result of scheduled downtimes and unplanned repairs.
Sales of semi-finished products (slabs) fell by 39.2% QoQ driven primarily by the timing of customer orders, which fluctuate throughout the year.
Sales of construction products decreased by 4.3% QoQ with continued sluggish demand caused by substantial customer inventories and imports of wire rod and rebar.
Sales of railway products were down 13.1% QoQ in the period due to planned major maintenance outage in September.
Flat-rolled product sales descended by 9.2% QoQ as a result of weakening demand from service centres. End user demand did not decrease in Q3 2019.
Tubular product sales volumes were almost flat (down 0.5%) QoQ as Canadian OCTG market remains soft.
Average selling prices
US$/t (ex works) Q3 Q2 9m 9m 2019 2019 2019 2018 ----------------------- ------ ------ ------ ------ Construction products 695 768 771 796 Flat-rolled products 875 953 961 967 Tubular products 1,340 1,347 1,353 1,230 ----------------------- ------ ------ ------ ------
Prices for construction products decreased in the period, driven primarily by falling scrap pricing and sluggish market demand. Prices for flat-rolled products dropped further as service centres continue to curtail purchases amid rapidly falling scrap prices and market uncertainty driven by soft demand. Prices for tubular products were almost flat in Q3 2019 (up 0.5% QoQ) thanks to higher priced large-diameter pipe (LDP) orders, although this was offset by a continued softening on the OCTG markets and lower line pipe prices.
In Q4 2019, crude steel output is expected to climb by as much as 5% compared with the average level for Q2 and Q3 2019. Tubular sales volumes are expected to rise QoQ, driven by increased recognition of current LDP orders and higher line pipe sales volumes. Sales of flat-rolled products are forecast to remain flat or marginally decline QoQ, driven by continued softness in the market along with the usual seasonal decline in demand at the end of the year.
COAL SEGMENT
Production volumes
Product, kt Q3 Q2 Q3 2019/ Q2 2019, Change 9m 2019 9m 2018 9m 2019/ 9m 2018, change 2019 2019 ---------------------------- ------ ------ ------------------------- -------- -------- ------------------------- Raw coking coal (mined) 6,319 6,996 -9.7% 20,159 17,335 16.3% Yuzhkuzbassugol 3,043 3,466 -12.2% 9,115 8,172 11.5% Raspadskaya 2,965 3,231 -8.2% 10,112 8,364 20.9% Mezhegeyugol 311 299 4.0% 932 799 16.6% Coking coal concentrate (production) 3,733 3,969 -5.9% 10,931 10,428 4.8% Produced at Yuzhkuzbassugol coal washing plants 1,570 1,837 -14.5% 4,840 4,991 -3.0% Produced at the Raspadskaya coal washing plant 2,163 2,132 1.5% 6,091 5,437 12.0% ---------------------------- ------ ------ ------------------------- -------- -------- -------------------------
In Q3 2019, overall raw coking coal output fell by 9.7% QoQ mainly following the decision to reduce production at the Razrez-Raspadsky open-pit as a response to substantial accumulated stockpiles of raw coal. In addition, production volumes were lower QoQ due to the longwall move at the Uskovskaya mine in the period.
Output of coking coal concentrate dropped by 5.9% QoQ, primarily due to higher sales of raw coal from the Uskovskaya mine.
Sales volumes
Product, kt Q3 Q2 Q3 2019/ Q2 2019, change 9m 2019 9m 2018 9m 2019/ 9m 2018, change 2019 2019 -------------------------- ------- ------- ------------------------- -------- -------- ------------------------- External sales 2,953 2,929 0.8% 8,539 8,244 3.6% Raw coking coal 741 447* 65.8% 1,685* 1,377 22.4% Coking coal concentrate 2,212 2,482 -10.9% 6,854 6,867 -0.2% Intersegment sales 1,712 1,650 3.8% 4,882 4,545 7.4% Raw coking coal 629 556 13.1% 1,580 1,455 8.6% Coking coal concentrate 1,084 1,094 -0.9% 3,301 3,090 6.8% -------------------------- ------- ------- ------------------------- -------- -------- -------------------------
* The data include sales volumes of 1 kt of coal recognised as steam-grade coal based on its quality characteristics.
In Q3 2019, external sales volumes of coking coal products remained flat QoQ. Raw coking coal sales volumes surged by 65.8% QoQ due to higher sales at the Uskovskaya mine to match customer needs. This was partly offset by lower coking coal concentrate sales volumes due to logistical limitations of shipments to Russia's Far East as a result of maintenance works at railroads.
Cash cost, US$/t Q3 Q2 Q3 2019/ Q2 2019, change 9m 2019 9m 2018 9m 2019/ 9m 2018, change 2019 2019 ------------------------- ------ ------ ------------------------- -------- -------- ------------------------- Coking coal concentrate 35 33 6.1% 35 47 -25.5% ------------------------- ------ ------ ------------------------- -------- -------- -------------------------
Average selling prices
Q3 Q2 9m 9m US$/t (ex works) 2019 2019 2019 2018 ------------------------- ------ ------ ------- ------- Raw coking coal 45 62 53 65 Coking coal concentrate 88 104 103 123 ------------------------- ------ ------ ------- -------
In Q3 2019, coking coal selling prices moved in line with global benchmarks.
In Q4 2019, raw coal production is expected to remain flat QoQ as the effect from the completion of the longwall move at the Uskovskaya mine will be partly offset by the longwall move at the Erunakovskaya mine.
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. They also include railway products for Ukraine.
###
For further information:
Media Relations:
Moscow: +7 495 937 6871
media@evraz.com
Investor Relations:
Moscow: +7 495 232 1370
ir@evraz.com
EVRAZ is a vertically integrated steel, mining and vanadium business with operations in the Russian Federation, Kazakhstan, US, Canada, Czech Republic and Italy. EVRAZ is among the top steel producers in the world based on crude steel production of 13mt in 2018. A significant portion of the company's internal consumption of iron ore and coking coal is covered by its mining operations. The company's consolidated revenues for the year ended 31 December 2018 were US$12,836m and consolidated EBITDA amounted to US$3,777m.
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.
END
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