10th Nov 2021 09:34
(Alliance News) - Evraz PLC on Wednesday said it plans to spend USD1.0 billion a year for the next five years in investment projects aimed at boosting earnings growth.
Evraz, a steel producer with assets in Russia, US, Canada, Czech Republic and Kazakhstan, said it expects capital expenditure of around USD1.0 billion per year until 2026, starting in 2021.
It is eyeing a number of investment projects with the goal of securing USD630 million in earnings before interest, taxes, depreciation and amortisation growth.
Evraz is expecting the effect on Ebitda from the Steel segment's sales strategy execution to come in at around USD300 million, which is partially included into the planned Ebitda growth figure.
Evraz is hosting a capital markets day on Wednesday, where it will update investors on the potential demerging of coal assets; outline its environment, social and governance targets; and give a Steel business growth strategy overview.
In August, Evraz said that it was continuing to make progress on its coal demerger, with all assets sitting under its coal-mining subsidiary PJSC Raspadskaya. At the time, it said it expected completion of the restructure by December.
Evraz shares were down 0.4% to 608.70 pence each in London on Wednesday morning.
By Greg Roxburgh; [email protected]
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