EquityStory.RS, LLC-News: PJSC Mechel / Key word(s): Miscellaneous
PJSC Mechel: Mechel Reports the 1Q 2020 Financial Results
2020-05-26 / 13:30 MSK
The issuer is solely responsible for the content of this announcement.
MECHEL REPORTS THE 1Q 2020 FINANCIAL RESULTS
Consolidated revenue - 68.3 bln rubles (-9% compared to 1Q 2019)
EBITDA[*] - 12.7 bln rubles (-17% compared to 1Q 2019)
Loss attributable to equity shareholders of Mechel PAO - 36.9 bln rubles
Moscow, Russia - May 26, 2020 - Mechel PAO (MOEX: MTLR, NYSE: MTL), a
leading Russian mining and steel group, announces financial results for the
1Q 2020.
Mechel PAO's Chief Executive Officer Oleg Korzhov commented:
"Consolidated EBITDA in 1Q2020 went up by 36% quarter-on-quarter. This was
due to EBITDA's quarter-on-quarter increase in each of the Group's business
segments. The steel division contributed the most, as its EBITDA doubled
quarter-on-quarter. This dynamic became possible due to a significant growth
of output and sales of rails and other types of high value-added products as
well as decreased production costs as raw material prices went down.
"The mining division's results came under the influence of a persistent
negative dynamics of metallurgical coal prices, but by maintaining stable
coal sales and optimizing costs the division managed to demonstrate a 9 %
EBITDA growth quarter-on-quarter.
"After this reporting period was over, the Group underwent significant
changes. In April Mechel sold its 51-percent stake in companies comprising
Elga Coal Complex to A-Property OOO. At the same time, Mechel signed
debt-restructuring agreements with Gazprombank and VTB Bank.
"This was a very serious step for the Group. The overall financial debt
level will decrease by approximately 146 billion rubles. This will enable
Mechel to improve its Net debt to EBITDA ratio, cut down debt service costs,
and to release resources for further debt decrease and development of the
company's production facilities."
Consolidated Results For The 1Q 2020
Mln rubles 1Q' 20 1Q' 19 % 1Q' 20 4Q' 19 %
Revenue 68,332 74,856 -9% 68,332 68,376 0%
from contracts
with external
customers
Operating profit 7,016 10,837 -35% 7,016 2,560 174%
EBITDA 12,690 15,322 -17% 12,690 9,361 36%
EBITDA, margin 19% 20% 19% 14%
(Loss) / profit (36,878) 11,336 -425% (36,878) (9,765) 278%
attributable to
equity
shareholders of
Mechel PAO
Mechel PAO's Chief Financial Officer Nelli Galeeva commented:
"Consolidated EBITDA for 1Q2020 totaled 12.7 billion rubles, which is 36%
more than in 4Q2019. Loss attributable to equity shareholders of Mechel PAO
amounted to 36.9 billion rubles, which is 27.1 billion rubles more than in
4Q2019 due to growth of foreign exchange losses on foreign currency
liabilities as a result of significant ruble devaluation in this reporting
period.
"The operating cash flow in 1Q2020 went up and reached 16 billion rubles as
compared to 15.1 billion in 4Q2019, which enabled us to satisfy the Group's
operational and investment needs while fulfilling our financial obligations.
"In 1Q2020, the Group's finance costs went down by 0.5 billion rubles and
reached 8.9 billion rubles as compared to 9.4 billion in 4Q2019 and by 1.2
billion from 10.1 billion in 1Q2019, due to a lower Central Bank of the
Russian Federation key interest rate as well as the Group's efforts on
restructuring its debt leverage and decreasing borrowing costs.
"Interest paid in 1Q2020, including capitalized interest and lease interest,
went down accordingly to reach 6.6 billion rubles, which is 0.7 billion less
than in 4Q2019 (7.3 billion rubles) and 1.1 billion less than in 1Q2019 (7.7
billion rubles). As of mid-May 2020, the average debt portfolio cost is 6.4%
per annum, average paid interest rate amounts to 6.3% per annum.
"The Group's net debt excluding fines and penalties on overdue amounts and
options went up by 27 billion rubles as compared to December 31, 2019, and
amounted to 427 billion rubles. This was due to the ruble weakening against
US dollar and euro to the effect of 32.9 billion rubles, which was partly
offset by net repayment of 5.7 billion rubles.
"Mostly due to the reason set out above the Net Debt to EBITDA ratio
amounted to 8.4 at the end of 1Q2020 as compared to 7.5 at the end of 2019.
"In April 2020, the Group sold its 51% share in the equity capital of
Elgaugol OOO, Elga-Doroga OOO and Mecheltrans-Vostok OOO to A-Property OOO.
The consideration amounted to 89 billion rubles, with the buyer fully
repaying Elgaugol OOO's obligations to the state development corporation
VEB.RF totaling 107 million dollars (approximately 8 billion rubles).
"Renouncing the Gazprombank option to buy out a 49% share in Elgaugol OOO,
Elga-Doroga OOO and Mecheltrans Vostok OOO, led to release of non-current
financial liability for 49 billion rubles.
"Simultaneously with this transaction, the Group signed debt restructuring
agreements with VTB Bank and Gazprombank, according to which consideration
from the transaction was used for early repayment of the debt principal to
VTB Bank and Gazprombank in proportion to their share in the Group's debt
portfolio. According to the restructuring's key conditions, debt maturity of
most of the loans by VTB Bank and Gazprombank has been extended by seven
years until March 2027 with the option of further extension by three years
more. Other significant conditions, including interest rates and collateral,
remained unchanged.
"On May 7, 2020 the Group's key lenders - VTB Bank and Gazprombank -
confirmed fulfillment of all condition precedents and loan restructuring's
coming into force.
"The company's debt leverage thus decreased by a total of approximately 146
billion rubles, and the debt portfolio's structure changed and currently
consists of 56% in rubles and the rest in foreign currency (US dollars and
euro). The state-controlled banks' share now amounts to 86%."
Mining Segment
Coal sales to third parties in 1Q2020 remained roughly at the previous
quarter's level, but continued weakening of the metallurgical coals market
led to a 9% decrease in revenue from contracts with external customers.
Moreover, with the 1Q2020 put into operation of Chelyabinsk Metallurgical
Plant's blast furnace #4 after an overhaul the need for coke went up, and
some coke volumes were redirected from sales to third parties to intra-Group
consumption, which also brought down revenue from external customers.
In 1Q2020 the pace of explosive and stripping works at the Group's Yakutia
mining assets somewhat slowed down. This, together with increased mining and
coal sales at Yakutugol, had a positive effect on cost of sales. In
addition, as the share of exports in sales to third parties decreased,
selling and distribution expenses went down also. As a result, in 1Q2020
EBITDA went up by 9% quarter-on-quarter.
Revenue from contracts with external customers in 1Q2020 went down by 26%
year-on-year. The division's EBITDA in 1Q2020 went down by 41% year-on-year.
This was primarily due to the decline in prices for all kinds of coal
products in the second half of last year, particularly for coking coal
concentrate and other types of metallurgical coal. This factor was partly
offset by increased sales of metallurgical coals and costs decrease as
mining volumes went up.
Mechel Mining Management OOO's Chief Executive Officer Igor Khafizov noted:
"In 1Q2020 the division maintained the level of mining volumes attained in
the second half of last year - over 5 million tonnes quarterly, though this
quarter result decreased slightly as compared to 4Q2019 which set the record
for the past three years. Coal mining stabilized at a high level as a result
of measures taken in the previous periods to restore mining volumes by
upgrading the mining fleet and equipment as well as bringing in contractors.
"The division demonstrated improvement of its financial results
quarter-on-quarter as production costs went down, despite the coal markets'
high volatility. EBITDA margin went up from 21% in 4Q2019 to 24% in 1Q2020.
"In the future, we plan to continue increasing coal and iron ore mining, as
well as salable product output by acquiring new equipment and upgrading
existing one. For example, we will pay additional attention to efficiency
and reliability of coal washing equipment in order to meet customer quality
requirements."
Mln rubles 1Q' 20 1Q' 19 % 1Q' 20 4Q' 19 %
Revenue 18,082 24,545 -26% 18,082 19,768 -9%
from contracts with
external customers
Revenue 8,331 9,473 -12% 8,331 7,977 4%
inter-segment
EBITDA 6,461 10,986 -41% 6,461 5,921 9%
EBITDA, margin 24% 32% 24% 21%
Steel Segment
Revenue from contracts with external customers in 1Q2020 went up by 4%
quarter-on-quarter due to increased sales of rails, flat products, including
stainless steel flat products, and wire. At the same time, EBITDA nearly
doubled in 1Q2020 quarter-on-quarter as steel product sales went up, while
production costs went down.
Revenue from contracts with external customers in 1Q2020 showed a minor
increase year-on-year. As prices for most of the division's products
diminished, the positive effect came from a significant boost to output and
sales of rails, where prices demonstrated positive dynamics. EBITDA went up
by 39% in this reporting period year-on-year as production costs decreased
with lower procurement prices for raw materials as well as lower selling and
distribution expenses as export volumes went down.
Mechel-Steel Management Company OOO's Chief Executive Officer Andrey
Ponomarev noted:
"The division's 1Q2020 financial results clearly demonstrated the efficiency
of our efforts to increase output and sales of the most profitable product
types. In this reporting period, with the needs of Russian Railways in mind,
we increased rail sales by a third quarter-on-quarter, including doubling
our rails export sales. Forgings sales went up by a half. We also increased
sales of flat products by 11%, with sales of stainless flat products up by
38%. As a result, revenue from sales to third parties went up by 4%
quarter-on-quarter. The decrease in prices for iron ore concentrate
(including pellets), coke, ferroalloys and electrodes had a positive impact
on production costs, which led to a 101% increase in EBITDA
quarter-on-quarter and a 39-percent increase year-on-year. EBITDA margin
reached 10%, the highest level since beginning of 2019.
"In order to maintain and increase output of high value-added product types
in 2020, we will continue the extensive repair and upgrade program we began
implementing last year. Our facilities also continue expanding their product
range. For example, in January-April 2020 Chelyabinsk Metallurgical Plant
mastered production of 27 new product types, Izhstal mastered 22, and
Beloretsk Metallurgical Plant - 14 types."
Mln rubles 1Q' 20 1Q' 19 % 1Q' 20 4Q' 19 %
Revenue 42,144 42,062 0% 42,144 40,559 4%
from contracts with
external customers
Revenue 1,950 1,595 22% 1,950 1,736 12%
inter-segment
EBITDA 4,534 3,259 39% 4,534 2,261 101%
EBITDA, margin 10% 7% 10% 5%
Power Segment
Mechel-Energo OOO's Chief Executive Officer Denis Graf noted:
"The division's 1Q2020 revenue was relatively stable both quarter-on-quarter
and year-on-year. EBITDA in this reporting period nearly quadrupled
year-on-year, largely due to lower power transmission costs as the volumes
of electricity and capacity went down, while capacity prices on the
wholesale market went up. The 37% increase in EBITDA quarter-on-quarter is
caused both by the seasonal climatic factor and the increase in energy
generation for intra-Group consumption."
Mln rubles 1Q' 20 1Q' 19 % 1Q' 20 4Q' 19 %
Revenue 8,105 8,249 -2% 8,105 8,050 1%
from contracts with
external customers
Revenue 4,319 4,400 -2% 4,319 4,192 3%
inter-segment
EBITDA 921 234 294% 921 671 37%
EBITDA, margin 7% 2% 7% 5%
***
Alexey Lukashov
Director of Investor Relations
Mechel PAO
Phone: 7-495-221-88-88
Fax: 7-495-221-88-00
alexey.lukashov@mechel.com
***
Mechel is an international mining and steel company. Its products are
marketed in Europe, Asia, North and South America, Africa. Mechel unites
producers of coal, iron ore concentrate, steel, rolled products,
ferroalloys, heat and electric power. All of its enterprises work in a
single production chain, from raw materials to high value-added products.
***
Some of the information in this press release may contain projections or
other forward-looking statements regarding future events or the future
financial performance of Mechel, as defined in the safe harbor provisions of
the U.S. Private Securities Litigation Reform Act of 1995. We wish to
caution you that these statements are only predictions and that actual
events or results may differ materially. We do not intend to update these
statements. We refer you to the documents Mechel files from time to time
with the U.S. Securities and Exchange Commission, including our Form 20-F.
These documents contain and identify important factors, including those
contained in the section captioned "Risk Factors" and "Cautionary Note
Regarding Forward-Looking Statements" in our Form 20-F, that could cause the
actual results to differ materially from those contained in our projections
or forward-looking statements, including, among others, the achievement of
anticipated levels of profitability, growth, cost and synergy of our 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 our shares or ADRs, financial risk management and
the impact of general business and global economic conditions.
Attachments to the Press Release
Attachment A
Non-IFRS financial measures. This press release includes financial
information prepared in accordance with International Financial Reporting
Standards, or IFRS, as well as other financial measures referred to as
non-IFRS. The non-IFRS financial measures should be considered in addition
to, but not as a substitute for the information prepared in accordance with
IFRS.
Adjusted EBITDA (EBITDA) represents profit (loss) attributable to equity
shareholders of Mechel PAO before Depreciation and amortisation, Foreign
exchange (gain) loss, net, Finance costs including fines and penalties on
overdue loans and borrowings and lease payments, Finance income, Net result
on the disposal of non-current assets, Impairment of goodwill and other
non-current assets, net, Write-off of trade and other receivables, Allowance
for expected credit losses on financial assets, Provision (reversal of
provision) for doubtful accounts, Write-off of inventories to net realisable
value, Net result on the disposal of subsidiaries, Profit (loss)
attributable to non-controlling interests, Income tax expense (benefit),
Effect of pension obligations, Other fines and penalties, Gain on
restructuring and forgiveness of trade and other payables and write-off of
trade and other payables with expired legal term and Other one-off items.
Adjusted EBITDA margin is defined as adjusted EBITDA as a percentage of our
Revenue. Our adjusted EBITDA may not be similar to EBITDA measures of other
companies. Adjusted EBITDA is not a measurement under IFRS and should be
considered in addition to, but not as a substitute for the information
contained in our interim condensed consolidated statement of profit (loss)
and other comprehensive income. We believe that our adjusted EBITDA provides
useful information to investors because it is an indicator of the strength
and performance of our ongoing business operations, including our ability to
fund discretionary spending such as capital expenditures, acquisitions and
other investments and our ability to incur and service debt. While
depreciation, amortisation and impairment of goodwill and other non-current
assets are considered operating expenses under IFRS, these expenses
primarily represent the non-cash current period allocation of costs
associated with non-current assets acquired or constructed in prior periods.
Our adjusted EBITDA calculation is commonly used as one of the bases for
investors, analysts and credit rating agencies to evaluate and compare the
periodic and future operating performance and value of companies within the
metals and mining industry.
Our calculation of Net debt, excluding fines and penalties on overdue
amounts**[???] is presented below:
Mln rubles 31.03.2020 31.12.2019
Current loans and borrowings, excluding 398,274 370,206
interest payable, fines and penalties on
overdue amounts
Interest payable 11,141 9,014
Non-current loans and borrowings 6,094 7,205
Other non-current financial liabilities 51,173 48,302
Other current financial liabilities 297 147
less Cash and cash equivalents (6,816) (3,509)
Net debt, excluding lease liabilities, 460,163 431,365
fines and penalties on overdue amounts
Current lease liabilities 10,143 10,353
Non-current lease liabilities 5,938 7,002
Net debt, excluding fines and penalties on 476,244 448,720
overdue amounts
EBITDA can be reconciled to our interim condensed consolidated statement of
profit (loss) and other comprehensive income as follows:
Consolidated Mining Steel Power
Results Segment Segment*** Segment**
*** *
Mln rubles 3m 3m 3m 3m 3m 3m 3m 3m
2020 2019 2020 2019 2020 2019 202 2019
0
(Loss) (36,87 11,336 (15,5 5,988 (25,2 6,935 200 (220)
profit 8) 20) 62)
attributable
to equity
shareholders
of Mechel
PAO
Add:
Depreciation 3,992 3,658 2,066 2,069 1,808 1,467 118 122
and
amortisation
Foreign 34,884 (11,97 10,37 (2,61 24,43 (9,35 68 (18)
exchange 9) 8 1) 8 0)
loss (gain),
net
Finance 8,949 10,085 5,436 6,247 3,507 3,875 137 164
costs
including
fines and
penalties on
overdue
loans and
borrowings
and lease
payments
Finance (353) (232) (353) (262) (122) (163) (8) (8)
income
Net result 937 512 308 210 459 180 168 122
on the
disposal of
non-current
assets,
impairment
of goodwill
and other
non-current
assets, net,
write-off of
trade and
other
receivables,
allowance
for expected
credit
losses on
financial
assets,
provision
(reversal of
provision)
for doubtful
accounts and
write-off of
inventories
to net
realisable
value
(Loss) (194) 378 (92) 180 (171) 197 70 1
profit
attributable
to
non-controll
ing
interests
Income tax 713 1,131 3,942 (960) (226) (77) 77 (42)
expense
(benefit)
Effect of 35 48 23 40 11 7 1 1
pension
obligations
Other fines 632 440 275 125 117 202 90 113
and
penalties
Gain on (27) (55) (2) (40) (25) (14) - (1)
restructurin
g and
forgiveness
of trade and
other
payables and
write-off of
trade and
other
payables
with expired
legal term
EBITDA 12,690 15,322 6,461 10,98 4,534 3,259 921 234
6
EBITDA, 19% 20% 24% 32% 10% 7% 7% 2%
margin
Consolidated Mining Steel Power
Results Segment Segment*** Segment**
*** *
Mln rubles 1q 4q 1q 4q 1q 4q 1q 4q
2020 2019 2020 2019 2020 2019 202 2019
0
(Loss) (36,87 (9,765 (15,5 (5,23 (25,2 (96) 200 1,260
profit 8) ) 20) 2) 62)
attributable
to equity
shareholders
of Mechel
PAO
Add:
Depreciation 3,992 3,908 2,066 2,216 1,808 1,584 118 108
and
amortisation
Foreign 34,884 (3,352 10,37 (1,36 24,43 (1,98 68 (5)
exchange ) 8 6) 8 1)
loss (gain),
net
Finance 8,949 9,391 5,436 5,833 3,507 3,588 137 164
costs
including
fines and
penalties on
overdue
loans and
borrowings
and lease
payments
Finance (353) (66) (353) (171) (122) (82) (8) (7)
income
Net result 937 2,331 308 4,091 459 (1,51 168 (240)
on the 9)
disposal of
non-current
assets,
impairment
of goodwill
and other
non-current
assets, net,
write-off of
trade and
other
receivables,
allowance
for expected
credit
losses on
financial
assets,
provision
(reversal of
provision)
for doubtful
accounts and
write-off of
inventories
to net
realisable
value
(Loss) (194) 623 (92) 68 (171) 441 70 116
profit
attributable
to
non-controll
ing
interests
Income tax 713 5,768 3,942 185 (226) 4 77 293
expense
(benefit)
Effect of 35 92 23 63 11 27 1 1
pension
obligations
Other fines 632 505 275 271 117 332 90 (1,019
and )
penalties
Gain on (27) (74) (2) (37) (25) (37) - -
restructurin
g and
forgiveness
of trade and
other
payables and
write-off of
trade and
other
payables
with expired
legal term
EBITDA 12,690 9,361 6,461 5,921 4,534 2,261 921 671
EBITDA, 19% 14% 24% 21% 10% 5% 7% 5%
margin
***
including
inter-segmen
t operations
Income tax, deferred tax related to the consolidated group of taxpayers are
not allocated to segments as they are managed on the group basis.
Attachment B
INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT (LOSS)
AND OTHER COMPREHENSIVE INCOME for the three months ended
March 31, 2020
(All amounts are in millions of Russian rubles)
Three Three
months months
ended March ended March
31, 31,
2020 2019
(unaudited) (unaudited)
Revenue from 68,332 74,856
contracts with
customers
Cost of sales (41,758) (45,248)
Gross profit 26,574 29,608
Selling and (13,099) (13,574)
distribution
expenses
Impairment of (85) -
goodwill and
other
non-current
assets, net
Allowance for (375) (120)
expected credit
losses on
financial
assets
Taxes other (1,477) (1,137)
than income
taxes
Administrative (4,731) (4,173)
and other
operating
expenses
Other operating 209 233
income
Total selling, (19,558) (18,771)
distribution
and operating
income and
(expenses), net
Operating 7,016 10,837
profit
Finance income 353 232
Finance costs (8,949) (10,085)
including fines
and penalties
on overdue
loans and
borrowings and
lease payments
Foreign (34,884) 11,979
exchange (loss)
gain, net
Share of profit - 7
of associates,
net
Other income 169 55
Other expenses (64) (180)
Total other (43,375) 2,008
income and
(expense), net
(Loss) profit (36,359) 12,845
before tax
Income tax (713) (1,131)
expense
(Loss) profit (37,072) 11,714
for the period
Attributable
to:
Equity (36,878) 11,336
shareholders of
Mechel PAO
Non-controlling (194) 378
interests
Other
comprehensive
income
Other 2,576 (387)
comprehensive
income (loss)
that may be
reclassified to
profit or loss
in subsequent
periods, net of
income tax:
Exchange 2,576 (387)
differences on
translation of
foreign
operations
Other 94 14
comprehensive
income not to
be reclassified
to profit or
loss in
subsequent
periods, net of
income tax:
Re-measurement 94 14
of defined
benefit plans
Other 2,670 (373)
comprehensive
income (loss)
for the period,
net of tax
Total (34,402) 11,341
comprehensive
(loss) income
for the period,
net of tax
Attributable
to:
Equity (34,211) 10,963
shareholders of
Mechel PAO
Non-controlling (191) 378
interests
INTERIM CONDENSED CONSOLIDATED
STATEMENT OF FINANCIAL POSITION as of March 31, 2020
(All amounts are in millions of Russian rubles)
March 31, December
31, 2019
2020
(unaudited)
Assets
Non-current assets
Property, plant and 178,819 179,264
equipment
Right-of-use assets 15,796 17,728
Mineral licenses 30,847 31,075
Goodwill and other 13,762 13,652
intangible assets
Investments in 323 321
associates
Deferred tax assets 3,476 3,648
Other non-current 561 553
assets
Non-current 192 232
financial assets
Total non-current 243,776 246,473
assets
Current assets
Inventories 42,714 39,773
Income tax 64 65
receivables
Trade and other 22,168 15,340
receivables
Other current assets 7,538 6,982
Other current 412 363
financial assets
Cash and cash 6,816 3,509
equivalents
Total current assets 79,712 66,032
Total assets 323,488 312,505
Equity and
liabilities
Equity
Common shares 4,163 4,163
Preferred shares 840 840
Treasury shares (63) (63)
Additional paid-in 24,434 24,434
capital
Accumulated other 1,819 (848)
comprehensive income
(loss)
Accumulated deficit (310,632) (273,754)
Equity attributable (279,439) (245,228)
to equity
shareholders of
Mechel PAO
Non-controlling 11,441 11,631
interests
Total equity (267,998) (233,597)
Non-current
liabilities
Loans and borrowings 6,094 7,205
Lease liabilities 5,938 7,002
Other non-current 51,173 48,303
financial
liabilities
Other non-current 272 105
liabilities
Pension obligations 5,076 4,933
Provisions 4,832 5,238
Deferred tax 13,799 13,877
liabilities
Total non-current 87,184 86,663
liabilities
Current liabilities
Loans and 412,343 381,317
borrowings,
including interest
payable, fines and
penalties on overdue
amounts of RUB
14,069 million and
RUB 11,111 million
as of March 31, 2020
and December 31,
2019, respectively
Trade and other 42,156 38,244
payables
Lease liabilities 10,143 10,353
Income tax payable 9,947 9,161
Taxes and similar 12,442 9,228
charges payable
other than income
tax
Advances received 11,058 5,816
and other current
liabilities
Other current 297 147
financial
liabilities
Pension obligations 613 615
Provisions 5,303 4,558
Total current 504,302 459,439
liabilities
Total liabilities 591,486 546,102
Total equity and 323,488 312,505
liabilities
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
for the three months ended March 31, 2020
(All amounts are in millions of Russian rubles)
Three months Three months
ended March ended March
31, 31,
2020 2019
(unaudited) (unaudited)
Cash flows from
operating
activities
(Loss) profit for (37,072) 11,714
the period
Adjustments to
reconcile (loss)
profit to net
cash provided by
operating
activities
Depreciation of 3,992 3,658
property, plant
and equipment and
right-of-use
assets,
amortisation of
mineral licenses
and other
intangible assets
Foreign exchange 34,884 (11,979)
loss (gain), net
Deferred income - (822)
tax benefit
Changes in 346 65
allowance for
expected credit
losses and
write-off of
trade and other
receivables and
payables, net
Write-off of 376 291
inventories to
net realisable
value
Impairment of 154 10
goodwill and
other non-current
assets, net and
loss on write-off
of non-current
assets
Finance income (353) (232)
Finance costs 8,949 10,085
including fines
and penalties on
overdue loans and
borrowings and
lease payments
Provisions for 387 1,485
legal claims,
taxes and other
provisions
Other 30 123
Changes in
working capital
items
Trade and other (4,188) (3,323)
receivables
Inventories (2,060) (1,850)
Trade and other 2,329 2,300
payables
Advances received 4,584 224
Taxes payable and 3,830 1,935
other liabilities
Other assets (101) 851
Income tax paid (128) (522)
Net cash provided 15,959 14,013
by operating
activities
Cash flows from
investing
activities
Interest received 11 49
Proceeds from 39 272
loans issued and
other investments
Proceeds from 4 145
disposals of
property, plant
and equipment
Purchases of (1,901) (1,082)
property, plant
and equipment
Interest paid, (41) (30)
capitalised
Net cash used in (1,888) (646)
investing
activities
Cash flows from
financing
activities
Proceeds from 5,098 840
loans and
borrowings,
including
proceeds from
factoring
arrangement of
RUB 98 million
and RUB 132
million for the
three months
ended March 31,
2020 and 2019,
respectively
Repayment of (10,752) (4,304)
loans and
borrowings,
including
payments from
factoring
arrangement of
nil and RUB 1,694
million for the
three months
ended March 31,
2020 and 2019,
respectively
Dividends paid to (2) (6)
non-controlling
interests
Interest paid, (6,584) (7,632)
including fines
and penalties
Repayment of (479) (515)
lease liabilities
Effect of sale (11) -
and leaseback
transactions
Deferred payments (205) (39)
for acquisition
of assets
Deferred - (361)
consideration
paid for the
acquisition of
subsidiaries in
prior periods
Net cash used in (12,935) (12,017)
financing
activities
Foreign exchange 645 (364)
loss (gain) on
cash and cash
equivalents, net
Changes in 5 5
allowance for
expected credit
losses on cash
and cash
equivalents
Net increase in 1,786 991
cash and cash
equivalents
Cash and cash 3,509 1,803
equivalents at
beginning of
period
Cash and cash 2,867 380
equivalents, net
of overdrafts at
beginning of
period
Cash and cash 6,816 2,745
equivalents at
end of period
Cash and cash 4,653 1,371
equivalents, net
of overdrafts at
end of period
There were certain reclassifications to conform with the current period
presentation. These interim condensed consolidated financial statements were
prepared by Mechel PAO in accordance with IFRS and have not been audited by
the independent auditor. If these interim condensed consolidated financial
statements are audited in the future, the audit could reveal differences in
our consolidated financial results and we cannot assure that any such
differences would not be material.
=---------------------------------------------------------------------------
[*] EBITDA - Adjusted EBITDA. Please find the calculation of the Adjusted
EBITDA and other non-IFRS measures used here and hereafter in Attachment A.
**[???] Calculations of Net debt could be differ from indicators calculated in
accordance with loan agreements upon dependence on definitions in such
agreements.
2020-05-26 MSK Dissemination of a Corporate News, transmitted by
EquityStory.RS, LLC - a company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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Archive at www.dgap.de
Language: English
Company: PJSC Mechel
1 Krasnoarmeyskaya Street, Moscow, Russia
127006 Moscow
Russia
Phone: +7 (495) 221-88-88
Fax: +7 (495) 221-88-00
E-mail: press@mechel.com
Internet: www.mechel.ru/
ISIN: US5838406081, RU000A0DKXV5
WKN: A2AC1G
Listed: Foreign Exchange(s) Moscow, NYSE
EQS News ID: 1055333
End of News EquityStory.RS, LLC News Service
1055333 2020-05-26 MSK
(END) Dow Jones Newswires
May 26, 2020 06:30 ET (10:30 GMT)
