27th Feb 2020 08:56
(Alliance News) - Evraz PLC on Thursday reported a sharp full-year profit slide with its trading hurt by less "favourable" global steel and commodity markets.
In 2019, revenue slipped 7.3% to USD11.91 billion from USD12.84 billion. Pretax profit tumbled 72% to USD902 million from USD3.20 billion.
Chief Executive Officer Alexander Frolov said: "In 2019, global steel and commodity markets were not as favourable as they were in 2018. Steel prices have fallen as a result of excess supply in an environment of limited end-use demand. Global coal and vanadium markets returned to supply-demand equilibrium."
Earnings before interest, taxes, depreciation, and amortisation was down by almost a third to USD2.60 billion from USD3.78 billion, with Ebitda margin sliding to 21.8% from 29.4%. Evraz blamed this on "lower vanadium and coal product prices as well combined higher expenses".
In the Steel segment, revenue was 8.3% lower year-on-year to USD8.14 billion. Steel North America was down 3.2% at USD2.50 billion with coal sliding 14% to USD2.02 billion.
During the period, Evraz made USD0.75 in payouts, down 6.3% from USD0.80 in 2018. The company on Thursday declared a USD0.40 interim dividend, flat year-on-year, "reflecting the board's confidence".
"In 2020, EVRAZ will continue to make significant efforts to improve safety and other vitally important areas of sustainable development. The Group has also set ambitious production targets for the year that should help it to reach solid results despite potential market headwinds," Frolov added.
Shares in the company were down 3.7% at 362.50 pence each in London on Thursday morning.
By Eric Cunha; [email protected]
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