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Metalloinvest Finance Designated Activity Company (IRSH)
Metalloinvest Finance Designated Activity Company: METALLOINVEST ANNOUNCES
2018 IFRS FINANCIAL RESULTS
14-March-2019 / 14:07 MSK
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
Moscow, Russia - 14 March 2019 - Metalloinvest ("the Company"), a leading
global iron ore and HBI producer, and one of the regional producers of
high-quality steel, today publishes its audited IFRS financial results for
the full year ended 31 December 2018.
FINANCIAL HIGHLIGHTS
· Revenue USD 7,187 mn (+15.3% y-o-y)
· EBITDA USD 2,934 mn (+38.4%)
· EBITDA Margin 40.8% vs. 34.0% in 2017
· Net Income USD 1,647 mn (+17.1%)
· Net Debt USD 3 ,358 mn (-17.2% compared to 31 December 2017)
· Net Debt/EBITDA 1.1x vs. 1.9x as of 31 December 2017
· Capital Expenditure USD 441 mn (-9.8%)
PRODUCTION HIGHLIGHTS
· Iron ore 40.4 mn tonnes (+0.2%)
· Pellets 27.7 mn tonnes (+10.2%)
· HBI/DRI 7.8 mn tonnes (+12.1%)
· Hot metal 3.0 mn tonnes (+12.6%)
· Crude steel 5.1 mn tonnes (+6.2%)
KEY CORPORATE HIGHLIGHTS
Operational developments and capital expenditure
· Completion of vacuum degasser modernisation at the EAF shop at Ural
Steel
· Launch of commercial operations at concentrate intake facility at MGOK
· Launch of integrated financial and business management system, using the
SAP S/4HANA business suite at LGOK and MGOK
· Launch of the Roller Treatment Furnace #1 and Heat Treatment Machine #1
?omplex at Ural Steel
· Launch of new warehouse for the storage and shipment of finished
products at OEMK
· Completion of the first modernisation stage of PP-3 at MGOK resulting in
its productivity increase by 5% per year
· Completed works for the first launch complex of the external power
supply network at LGOK
· Coordination meetings with KAMAZ, TMK, United Metallurgical Company and
ChelPipe
Financing
· Refinancing of USD 240 mn pre-export credit facilities (PXF) with a new
PXF raised in 2018
· Keeping the Company's series 02 and 03 bonds for a total amount of RUB
10 bn in the market for 5 years with a coupon rate set at 7.65%, following
the successful execution of a put option
· Signing of a EUR 72 mn credit facility agreement with Crédit Agricole
CIB guaranteed by export credit agency (ECA) for financing the purchase of
equipment
· Improvement of commercial terms under the syndicated loan PXF-2017 for
the amount of USD 800 mn (tranche A)
· Partial refinancing of loan portfolio following the new 6-year loan
provided by Gazprombank in the amount of RUB 18.8 bn
· Extension and improvement of commercial terms under revolving credit
line agreement with ING Bank for the amount of USD 200 mn (or EUR
equivalent)
· Upgrade of outlook on Metalloinvest's ratings by Moody's Investors
Service, RAEX (Expert RA) and Fitch Ratings to Positive from Stable
Andrey Varichev, CEO of Management Company Metalloinvest, commented:
"In 2018, the Company continued to deliver on its strategy to increase the
production volume of high value-added products. In the reporting period, the
production of pellets and HBI/DRI amounted to a record 27.7 mn tonnes and
7.8 mn tonnes respectively. The Company's focus on increasing its production
of high value-added products, favourable market conditions, and the
implementation of its operational improvement programme allowed
Metalloinvest to demonstrate steady growth in its financial results. In
2018, revenue increased by 15.3% y-o-y, while EBITDA grew by 38.4%."
Alexey Voronov, Finance Director of Management Company Metalloinvest, added:
"In 2018, we continued to improve commercial terms of the Company's loan
portfolio, as well as to introduce the best corporate governance practices.
Our work has resulted in a reduction of average debt servicing costs,
decrease of Net Debt/EBITDA ratio to a record 1.1x since 2011, and a
reduction of 2019 scheduled loan payments to almost zero. In the reporting
period, the international credit rating agencies Moody's and Fitch and the
Russian rating agency Expert RA revised the outlook on Metalloinvest's
rating to Positive from Stable."
Full press release and financial statements are available at:
http://www.metalloinvest.com/en/investors/financial-results/ [1]
# # # #
For further information, please contact:
Artem Lavrishchev
Director of Investor Relations and Corporate Ratings
E: ir@metalloinvest.com
?: +7 (495) 981-55-55
Metalloinvest is a leading global iron ore and merchant HBI producer and
supplier, and one of the regional producers of high-quality steel. The
Company has the world's second-largest measured iron ore reserve base and is
one of the lowest-cost iron ore producers.
Metalloinvest is wholly owned by Holding Company USM LLC. Alisher Usmanov is
the major beneficiary of USM Holdings (49%), with other major beneficiaries
being the companies of Vladimir Skoch (30%) and Farhad Moshiri (8%).
ISIN: XS0918297382
Category Code: MSCL
TIDM: IRSH
Sequence No.: 7813
EQS News ID: 787547
End of Announcement EQS News Service
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(END) Dow Jones Newswires
March 14, 2019 07:07 ET (11:07 GMT)
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