Metinvest trading news for the first quarter of 2019

Metinvest BV has released a trading update for the first quarter ended March 31, 2019. In 1Q 2019, Metinvest's consolidated revenue decreased by 5% YoY to USD 2,863 million, mainly due to a drop in steel prices in line with global guidance, as well as lower resale volumes. This was partially offset by an increase in sales of its own steel products following a change in product mix, mainly due to the launch of continuous casting machine # 4 on, which allowed the plant to use large volumes of hot metal for steel production. and subsequent production instead of cast iron. In addition, the Group increased its iron ore sales due to higher sales volumes and higher realized prices amid a global decline in supplies.

During this period, revenue in Ukraine decreased by 7% YoY to USD 776 million on the back of lower prices for metal products and lower sales of flat products, coke and pellets. As a result, Ukraine's share of consolidated revenues decreased by 1% year-on-year to 27%.

In 1Q 2019, international sales decreased by 4% YoY to USD 2,086 million, representing 73% of consolidated revenues.

Sales to Europe decreased by 1% YoY, mainly on the back of lower prices for steel sold, as well as a drop in sales of pig iron (-92 thousand tonnes). At the same time, the region's share in total revenues was 37%, an increase of 2%.
Sales to the Middle East and North Africa decreased by 10% YoY, mainly due to lower prices for metal products, as a result of which MENA's share in consolidated revenues decreased by 1 pp. before 18%.

Sales in the CIS fell 18% YoY after falling prices for finished goods and lengthy volumes (-25 kt), which led to a decrease in the region's share in consolidated revenues by 1 percentage point to 6%.

Sales to Southeast Asia jumped 43% year-on-year mainly due to higher sales of pellets and slabs, which increased the region's share of consolidated revenues by 2 percentage points. up to 5%.

Sales to North America declined 32% year-on-year, mainly due to lower iron sales volumes (-192 thousand tonnes), which reduced the region's share of total revenues by 2 percentage points to 4%.

Sales to other regions were up 39% YoY, driven by higher sales of flat products and iron ore concentrate, which helped boost their share of consolidated revenues by 1% to 3%.

The steel segment generates revenues from sales of pig iron, steel, coke and other products and services. In 1Q 2019, its revenue decreased by 10% yoy to USD 2,333 million, which was due to a decrease in sales prices.