PAO Severstal (SVST)
Severstal reports Q1 2020 operational results
14-Apr-2020 / 09:01 MSK
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according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
Severstal reports Q1 2020 operational results
Moscow, Russia - 14 April 2020 - PAO Severstal (MICEX-RTS: CHMF; LSE: SVST),
one of the world's leading vertically integrated steel and steel-related
mining companies, today announces its operational results for Q1 2020.
Q1 2020 GROUP HIGHLIGHTS
· Hot metal output increased 2% q/q in Q1 2020 to 2.41 mln tonnes (Q4
2019: 2.36 mln tonnes) following the completion of short-term maintenance
works at blast furnace facilities in Q4 2019.
· Crude steel production increased 5% to 2.85 mln tonnes (Q4 2019: 2.71
mln tonnes), driven by an increased number of castings in Q1 2020 and the
completion of short-term maintenance works at steelmaking facilities in Q4
2019.
· Consolidated steel product sales increased 4% q/q to 2.75 mln tonnes in
Q1 2020 (Q4 2019: 2.65 mln tonnes).
· The Company increased its share of steel export shipments to 45% (Q4
2019: 41%) responding to a seasonal slowdown in domestic demand.
· The share of high value-added (HVA) products within the sales portfolio
amounted to 42% (Q4 2019: 45%), due to increased shipments of hot rolled
coil, long steel products and decreased sales of LDPs.
· Coking coal concentrate sales volumes from Vorkutaugol declined 29% q/q
to 0.95 mln tonnes as a result of a decrease in run-of-mine production
affected by long wall repositioning at the Komsomolskaya mine in Q1 2020.
· Iron ore pellet sales grew 6% to 2.97 mln tonnes (Q4 2019: 2.81 mln
tonnes) reflecting stronger demand q/q.
· Iron ore concentrate sales volumes declined 8% to 1.47 mln tonnes (Q4
2019: 1.60 mln tonnes) impacted by a planned decline in production at
Olcon.
SUMMARY OF KEY PRODUCTION, SALES VOLUMES
Production, Q1 2020 Q4 2019 Change, % Q1 2020 Q1 2019 Change, %
thousands of
tonnes
Crude Steel 2,850 2,714 5% 2,850 3,044 (6%)
(Russian
Steel)
Hot metal 2,410 2,361 2% 2,410 2,363 2%
(Russian
Steel)
Sales Q1 2020 Q4 2019 Change, % Q1 2020 Q1 2019 Change, %
volumes,
thousands of
tonnes
Coking coal 951 1,331 (29%) 951 1,031 (8%)
concentrate
Iron ore 2,967 2,810 6% 2,967 2,832 5%
pellets
Iron ore 1,469 1,595 (8%) 1,469 1,301 13%
concentrate
Total steel 2,749 2,651 4% 2,749 2,832 (3%)
products
(Consolidate
d)
Total steel 2,759 2,663 4% 2,759 2,843 (3%)
products
(Russian
Steel)
High value Q1 2020 Q4 2019 Change, % Q1 2020 Q1 2019 Change, %
added steel
products, %
Severstal 42% 45% (3 ppts) 42% 44% (2 ppts)
(Consolidate
d)
Severstal 42% 45% (3 ppts) 42% 44% (2 ppts)
Russian
Steel
SEVERSTAL'S CONSOLIDATED SALES (NET OF INTERCOMPANY SALES)
Sales volumes, Q1 2020 Q4 Change, % Q1 2020 Q1 Change,
thousands of 2019 2019 %
tonnes
Coal: 387 435 (11%) 387 532 (27%)
Coking coal 65 77 (16%) 65 157 (59%)
concentrate
Steam coal 322 358 (10%) 322 375 (14%)
Iron ore: 1,661 2,175 (24%) 1,661 1,656 0%
Iron ore 1,527 1,825 (16%) 1,527 1,302 17%
pellets
Iron ore 134 350 (62%) 134 354 (62%)
concentrate
Semi-finished 192 208 (8%) 192 121 59%
products
Rolled 2,170 2,016 8% 2,170 2,311 (6%)
products:
Hot - rolled 1,197 1,072 12% 1,197 1,102 9%
coil
Hot - rolled 252 255 (1%) 252 233 8%
plate
Cold - rolled 210 234 (10%) 210 275 (24%)
coil
Galvanised and 219 205 7% 219 237 (8%)
metallic coated
coil
Colour coated 98 83 18% 98 102 (4%)
coil
Long products 194 167 16% 194 362 (46%)
Downstream 387 427 (9%) 387 400 (3%)
products:
Metalware 146 150 (3%) 146 126 16%
products
Large diameter 19 80 (76%) 19 97 (80%)
pipes
Other tubes, 222 197 13% 222 177 25%
pipes, formed
shapes
SEVERSTAL RESOURCES
· Coking coal concentrate sales volumes from Vorkutaugol declined 29% q/q
to 0.95 mln tonnes as a result of a decrease in run-of-mine production due
to the scheduled long-wall repositioning at the Komsomolskaya mine in Q1
2020.
· Iron ore pellet sales grew 6% to 2.97 mln tonnes (Q4 2019: 2.81 mln
tonnes) reflecting demand recovery in Q1 2020.
· Iron ore concentrate sales volumes declined 8% to 1.47 mln tonnes (Q4
2019: 1.60 mln tonnes) impacted by a planned decline in production at
Olcon.
Sales Q1 2020 Q4 2019 Change, % Q1 2020 Q1 2019 Change, %
volumes,
thousands
tonnes
Coal: 1,273 1,688 (25%) 1,273 1,406 (9%)
Coking coal 951 1,331 (29%) 951 1,031 (8%)
concentrate
Steam coal 322 357 (10%) 322 375 (14%)
Iron ore: 4,436 4,405 1% 4,436 4,133 7%
Iron ore 2,967 2,810 6% 2,967 2,832 5%
pellets
Iron ore 1,469 1,595 (8%) 1,469 1,301 13%
concentrate
SEVERSTAL RUSSIAN STEEL ('RSD')
· RSD steel product sales increased 4% q/q to 2.76 mln tonnes in Q1 2020
(Q4 2019: 2.66 mln tonnes).
· The Company increased its share of steel export shipments to 45% (Q4
2019: 41%) responding to a seasonal slowdown in domestic demand.
· The share of high value-added (HVA) products within the sales portfolio
amounted to 42% (Q4 2019: 45%), due to increased shipments of hot rolled
coil and long steel product and decreased sales of LDPs.
· Cold rolled coil sales volumes declined 10% q/q due to short-term
scheduled maintenance works at the four-stand cold rolling mill in Q1
2020. Meanwhile, RSD increased sales of hot rolled coil by 12% q/q.
· LDP sales volumes declined to 19,000 tonnes for Q1 2020, primarily
reflecting changes in the product mix and the accumulation of stock levels
at the Izhora Pipe Mill (ITZ).
· The weighted average selling price for the whole range of steel products
in Q1 2020 declined by 6% q/q as a result of various factors affecting
global markets, including steel pricing volatility in both export and
domestic markets, as well as Russian currency devaluation.
Sales volumes, Q1 2020 Q4 Change, % Q1 2020 Q1 Change,
thousands of 2019 2019 %
tonnes
Total steel 2,759 2,663 4% 2,759 2,843 (3%)
products
Semi-finished 192 207 (7%) 192 121 59%
products
Rolled 2,179 2,028 7% 2,179 2,322 (6%)
products:
Hot - rolled 1,198 1,071 12% 1,198 1,102 9%
coil
Hot - rolled 252 254 (1%) 252 233 8%
plate
Cold - rolled 210 234 (10%) 210 275 (24%)
coil
Galvanised and 219 205 7% 219 237 (8%)
metallic coated
coil
Colour coated 98 83 18% 98 102 (4%)
coil
Long products 202 181 12% 202 373 (46%)
Downstream 388 428 (9%) 388 400 (3%)
products:
Metalware 147 150 (2%) 147 126 17%
products
Large diameter 19 80 (76%) 19 97 (80%)
pipes
Other tubes, 222 198 12% 222 177 25%
pipes, formed
shapes
Sales price, Q1 2020 Q4 Change, % Q1 2020 Q1 Change,
$/tonne 2019 2019 %
Semi-finished 388 362 7% 388 423 (8%)
products
Hot - rolled 435 443 (2%) 435 494 (12%)
coil
Hot-rolled 607 655 (7%) 607 635 (4%)
plate
Cold - rolled 582 611 (5%) 582 592 (2%)
coil
Galvanised and 633 680 (7%) 633 709 (11%)
metallic coated
coil
Colour coated 774 847 (9%) 774 849 (9%)
coil
Long products 429 425 1% 429 449 (4%)
Metalware 884 935 (5%) 884 948 (7%)
products
Large diameter 794 931 (15%) 794 1,008 (21%)
pipes
Other tubes, 523 527 (1%) 523 568 (8%)
pipes, formed
shapes
Notes:
1) Sales prices are stated on EXW basis;
2) Segmental data includes intercompany sales;
3) Semi-finished products include pig iron, slabs, billets, ingots, steel
casting and forgings;
4) Large diameter pipes include all pipes with a diameter between 820 and
1420 mm.
Contacts
Investor Relations
Evgeny Belov
T: +7 (495) 926-77-66 ext. 6445
evgenii.belov@severstal.com
Public Relations
Anastasia Mishanina
T: +7 (495) 926-77-66 ext. 6457
anastasia.mishanina@severstal.com
Severstal's financial communications agency - Hudson Sandler
Andrew Leach / Emily Dillon
T: +44 (0) 20 7796 4133
***
P?? Severstal is one of the world's leading vertically integrated steel and
steel related mining companies, with assets in Russia, Latvia and Poland.
Severstal is listed on RTS and MICEX and the company's GDRs are traded on
the LSE. Severstal reported revenue of $8,157 million and EBITDA of $2,805
million in 2019. Severstal's crude steel production in 2019 reached 11.8
million tonnes. www.severstal.com [1]
ISIN: US8181503025
Category Code: TST
TIDM: SVST
LEI Code: 213800OKDPTV6K4ONO53
Sequence No.: 58036
EQS News ID: 1020879
End of Announcement EQS News Service
1: https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=5885d49ed5e8dc686b77ca6aa78e352b&application_id=1020879&site_id=vwd&application_name=news(END) Dow Jones Newswires
April 14, 2020 02:01 ET (06:01 GMT)
