NLMK Group announced financial results for the 4th quarter and 2019. NLMK Group CFO Shamil Kurmashov said: “The situation on the steel products markets in 2019 was quite difficult. In the second half of 2019, prices fell below the average cycle. The dive was so deep that we estimate that 80% of the world's HRC production was unprofitable. Sector margins were further pressured by higher commodity prices. Amid the low market phase, NLMK undertook a major overhaul of its blast furnaces and boilers, which resulted in a 3% decrease in steel sales compared to the same period last year in 2019.
Revenue decreased by 12% YoY to US $ 10.6 billion in 2019 amid falling prices for steel products and lower sales due to overhauls at NLMK in the Lipetsk Region. EBITDA stood at USD 2.6 billion, down 29% YoY on the back of lower revenues and a narrower steel-to-feed spread. EBITDA margin fell to 24%.
Revenue decreased 10% qoq to $ 2.3bn in Q4. 2019 amid falling average selling prices and an increase in the share of semi-finished products in the sales portfolio. EBITDA declined to USD 480 million, down 27% qoq due to a faster decline in steel prices compared to raw materials. EBITDA margin decreased to 21%
NLMK Group announces 4Q and 2019 financial results
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Azovpromstal® 13 February 2020 г. 10:32 |
