16th Apr 2020 14:57
(Alliance News) - Steelmaker Evraz PLC on Thursday said its seen little operational interruption from the Covid-19 outbreak, but expects steel demand in Russia to suffer as a result of a pandemic-induced economic downturn.
Evraz shares were 8.1% higher at 251.50 pence each in London on Thursday afternoon.
"We expect domestic steel demand to fall due to the significant economic down-turn that the restrictions imposed due to Covid-19 are causing worldwide, including in Russia. This will, no doubt, affect firstly our construction products sales and then our railway products sales, to a slightly lesser extent," FTSE 100-listed Evraz warned.
Impact on exports will be "less significant", the Russian firm said, due to the recent devaluation of the rouble.
Evraz added: "While the impact on the group has been limited so far, we are likely to experience challenges in the near term. While our enterprises have been operating at full capacity, the situation is likely to be more complex in May and June. In light of this, Evraz is working on a comprehensive package of optimisation measures that we expect to partially mitigate these negative effects.
"The group remains well capitalised with a strong liquidity cushion."
Net debt at December 31 stood at USD3.45 billion. Evraz said it had cash of USD1.42 billion
"Short-term loans and the current portion of long-term loans stood at USD140 million. Total scheduled debt maturities during 2020 will amount to no more than USD52 million," the company added.
It also explained that it paid a USD0.40 per share dividend, costing it a total of USD580.8 million.
Evraz added: "In addition, also in March 2020, Evraz signed a USD750 million five-year committed syndicated unsecured credit facility. This facility was arranged and fully underwritten by a group of 10 international banks and is available for drawing until March 18, 2021. The proceeds of the facility will be used for general corporate purposes, including refinancing of the public debt maturities upcoming in the first quarter of 2021."
The first quarter of 2021 is the first time "sizeable maturities" are due, the company said.
By Eric Cunha; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
Evraz