19th Oct 2018 08:18
LONDON (Alliance News) - Evraz PLC said Friday its ongoing efficiency programme will result in a USD290 million to USD300 million gain on earnings before interest, taxes, depreciation and amortisation basis for 2018.
The steel producer said it is targeting to maintain its cost savings to improve cost of sales by at least 3% or around USD250 million to USD300 million per annum going forward.
The company, which is holding an investor day on Friday, is considering four major investment projects to increase sales of finished steel products to local markets in In 2019 to 2022 period. It plans to invest between USD830 to USD990 million per annum during the period.
For 2018, Evraz is guiding capital expenditure of USD640 million to USD660 million.
The FTSE 100-listed steel and coal firm in August increased its interim dividend after its profit and revenue both jumped on higher sales and prices, combined with cost cuts.
For the six months ended June, pretax profit multiplied more than five times to USD1.54 billion from USD294 million the year prior as revenue rose 25% to USD6.19 billion from USD4.96 billion the year before.
Evraz proposed a 40 US cents second interim dividend per share. The year prior it paid a 30 cents dividend.
Shares in Evraz on Friday opened 0.4% higher at 555.40 pence each.
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