14th Apr 2020 07:01
PAO Severstal (SVST) Severstal reports Q1 2020 operational results 14-Apr-2020 / 09:01 MSK Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group. The issuer is solely responsible for the content of this announcement.
Severstal reports Q1 2020 operational results Moscow, Russia - 14 April 2020 - PAO Severstal (MICEX-RTS: CHMF; LSE: SVST), one of the world's leading vertically integrated steel and steel-related mining companies, today announces its operational results for Q1 2020. Q1 2020 GROUP HIGHLIGHTS Hot metal output increased 2% q/q in Q1 2020 to 2.41 mln tonnes (Q4 2019: 2.36 mln tonnes) following the completion of short-term maintenance works at blast furnace facilities in Q4 2019.Crude steel production increased 5% to 2.85 mln tonnes (Q4 2019: 2.71 mln tonnes), driven by an increased number of castings in Q1 2020 and the completion of short-term maintenance works at steelmaking facilities in Q4 2019. Consolidated steel product sales increased 4% q/q to 2.75 mln tonnes in Q1 2020 (Q4 2019: 2.65 mln tonnes). The Company increased its share of steel export shipments to 45% (Q4 2019: 41%) responding to a seasonal slowdown in domestic demand. The share of high value-added (HVA) products within the sales portfolio amounted to 42% (Q4 2019: 45%), due to increased shipments of hot rolled coil, long steel products and decreased sales of LDPs. Coking coal concentrate sales volumes from Vorkutaugol declined 29% q/q to 0.95 mln tonnes as a result of a decrease in run-of-mine production affected by long wall repositioning at the Komsomolskaya mine in Q1 2020. Iron ore pellet sales grew 6% to 2.97 mln tonnes (Q4 2019: 2.81 mln tonnes) reflecting stronger demand q/q. Iron ore concentrate sales volumes declined 8% to 1.47 mln tonnes (Q4 2019: 1.60 mln tonnes) impacted by a planned decline in production at Olcon.
SUMMARY OF KEY PRODUCTION, SALES VOLUMES
SEVERSTAL'S CONSOLIDATED SALES (NET OF INTERCOMPANY SALES)
SEVERSTAL RESOURCES Coking coal concentrate sales volumes from Vorkutaugol declined 29% q/q to 0.95 mln tonnes as a result of a decrease in run-of-mine production due to the scheduled long-wall repositioning at the Komsomolskaya mine in Q1 2020. Iron ore pellet sales grew 6% to 2.97 mln tonnes (Q4 2019: 2.81 mln tonnes) reflecting demand recovery in Q1 2020. Iron ore concentrate sales volumes declined 8% to 1.47 mln tonnes (Q4 2019: 1.60 mln tonnes) impacted by a planned decline in production at Olcon.
SEVERSTAL RUSSIAN STEEL ('RSD') RSD steel product sales increased 4% q/q to 2.76 mln tonnes in Q1 2020 (Q4 2019: 2.66 mln tonnes).The Company increased its share of steel export shipments to 45% (Q4 2019: 41%) responding to a seasonal slowdown in domestic demand. The share of high value-added (HVA) products within the sales portfolio amounted to 42% (Q4 2019: 45%), due to increased shipments of hot rolled coil and long steel product and decreased sales of LDPs. Cold rolled coil sales volumes declined 10% q/q due to short-term scheduled maintenance works at the four-stand cold rolling mill in Q1 2020. Meanwhile, RSD increased sales of hot rolled coil by 12% q/q. LDP sales volumes declined to 19,000 tonnes for Q1 2020, primarily reflecting changes in the product mix and the accumulation of stock levels at the Izhora Pipe Mill (ITZ). The weighted average selling price for the whole range of steel products in Q1 2020 declined by 6% q/q as a result of various factors affecting global markets, including steel pricing volatility in both export and domestic markets, as well as Russian currency devaluation.
1) Sales prices are stated on EXW basis; 2) Segmental data includes intercompany sales; 3) Semi-finished products include pig iron, slabs, billets, ingots, steel casting and forgings; 4) Large diameter pipes include all pipes with a diameter between 820 and 1420 mm.
Investor Relations Evgeny Belov T: +7 (495) 926-77-66 ext. 6445
Public Relations Anastasia Mishanina T: +7 (495) 926-77-66 ext. 6457
Severstal's financial communications agency - Hudson Sandler Andrew Leach / Emily Dillon T: +44 (0) 20 7796 4133
PАО Severstal is one of the world's leading vertically integrated steel and steel related mining companies, with assets in Russia, Latvia and Poland. Severstal is listed on RTS and MICEX and the company's GDRs are traded on the LSE. Severstal reported revenue of $8,157 million and EBITDA of $2,805 million in 2019. Severstal's crude steel production in 2019 reached 11.8 million tonnes. www.severstal.com
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| ISIN: | US8181503025 |
| Category Code: | TST |
| TIDM: | SVST |
| LEI Code: | 213800OKDPTV6K4ONO53 |
| Sequence No.: | 58036 |
| EQS News ID: | 1020879 |
| End of Announcement | EQS News Service |
UK Regulatory announcement transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement.
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