Severstal reports Q1 2020 operational results
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
Production, thousands of tonnes
Q1 2020
Q4 2019
Change, %
Q1 2020
Q1 2019
Change, %
Crude Steel (Russian Steel)
2,850
2,714
5%
2,850
3,044
(6%)
Hot metal (Russian Steel)
2,410
2,361
2%
2,410
2,363
2%
Sales volumes, thousands of tonnes
Q1 2020
Q4 2019
Change, %
Q1 2020
Q1 2019
Change, %
Coking coal concentrate
951
1,331
(29%)
951
1,031
(8%)
Iron ore pellets
2,967
2,810
6%
2,967
2,832
5%
Iron ore concentrate
1,469
1,595
(8%)
1,469
1,301
13%
Total steel products (Consolidated)
2,749
2,651
4%
2,749
2,832
(3%)
Total steel products (Russian Steel)
2,759
2,663
4%
2,759
2,843
(3%)
High value added steel products, %
Q1 2020
Q4 2019
Change, %
Q1 2020
Q1 2019
Change, %
Severstal (Consolidated)
42%
45%
(3 ppts)
42%
44%
(2 ppts)
Severstal Russian Steel
42%
45%
(3 ppts)
42%
44%
(2 ppts)
SEVERSTAL'S CONSOLIDATED SALES (NET OF INTERCOMPANY SALES)
Sales volumes, thousands of tonnes
Q1 2020
Q4 2019
Change, %
Q1 2020
Q1 2019
Change, %
Coal:
387
435
(11%)
387
532
(27%)
Coking coal concentrate
65
77
(16%)
65
157
(59%)
Steam coal
322
358
(10%)
322
375
(14%)
Iron ore:
1,661
2,175
(24%)
1,661
1,656
0%
Iron ore pellets
1,527
1,825
(16%)
1,527
1,302
17%
Iron ore concentrate
134
350
(62%)
134
354
(62%)
Semi-finished products
192
208
(8%)
192
121
59%
Rolled products:
2,170
2,016
8%
2,170
2,311
(6%)
Hot - rolled coil
1,197
1,072
12%
1,197
1,102
9%
Hot - rolled plate
252
255
(1%)
252
233
8%
Cold - rolled coil
210
234
(10%)
210
275
(24%)
Galvanised and metallic coated coil
219
205
7%
219
237
(8%)
Colour coated coil
98
83
18%
98
102
(4%)
Long products
194
167
16%
194
362
(46%)
Downstream products:
387
427
(9%)
387
400
(3%)
Metalware products
146
150
(3%)
146
126
16%
Large diameter pipes
19
80
(76%)
19
97
(80%)
Other tubes, pipes, formed shapes
222
197
13%
222
177
25%
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.
Sales volumes, thousands tonnes
Q1 2020
Q4 2019
Change, %
Q1 2020
Q1 2019
Change, %
Coal:
1,273
1,688
(25%)
1,273
1,406
(9%)
Coking coal concentrate
951
1,331
(29%)
951
1,031
(8%)
Steam coal
322
357
(10%)
322
375
(14%)
Iron ore:
4,436
4,405
1%
4,436
4,133
7%
Iron ore pellets
2,967
2,810
6%
2,967
2,832
5%
Iron ore concentrate
1,469
1,595
(8%)
1,469
1,301
13%
SEVERSTAL RUSSIAN STEEL ('RSD')
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.
Sales volumes, thousands of tonnes
Q1 2020
Q4 2019
Change, %
Q1 2020
Q1 2019
Change, %
Total steel products
2,759
2,663
4%
2,759
2,843
(3%)
Semi-finished products
192
207
(7%)
192
121
59%
Rolled products:
2,179
2,028
7%
2,179
2,322
(6%)
Hot - rolled coil
1,198
1,071
12%
1,198
1,102
9%
Hot - rolled plate
252
254
(1%)
252
233
8%
Cold - rolled coil
210
234
(10%)
210
275
(24%)
Galvanised and metallic coated coil
219
205
7%
219
237
(8%)
Colour coated coil
98
83
18%
98
102
(4%)
Long products
202
181
12%
202
373
(46%)
Downstream products:
388
428
(9%)
388
400
(3%)
Metalware products
147
150
(2%)
147
126
17%
Large diameter pipes
19
80
(76%)
19
97
(80%)
Other tubes, pipes, formed shapes
222
198
12%
222
177
25%
Sales price, $/tonne
Q1 2020
Q4 2019
Change, %
Q1 2020
Q1 2019
Change, %
Semi-finished products
388
362
7%
388
423
(8%)
Hot - rolled coil
435
443
(2%)
435
494
(12%)
Hot-rolled plate
607
655
(7%)
607
635
(4%)
Cold - rolled coil
582
611
(5%)
582
592
(2%)
Galvanised and metallic coated coil
633
680
(7%)
633
709
(11%)
Colour coated coil
774
847
(9%)
774
849
(9%)
Long products
429
425
1%
429
449
(4%)
Metalware products
884
935
(5%)
884
948
(7%)
Large diameter pipes
794
931
(15%)
794
1,008
(21%)
Other tubes, pipes, formed shapes
523
527
(1%)
523
568
(8%)
Notes:
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.
Contacts
Investor Relations
Evgeny Belov
T: +7 (495) 926-77-66 ext. 6445
evgenii.belov@severstal.com
Public Relations
Anastasia Mishanina
T: +7 (495) 926-77-66 ext. 6457
anastasia.mishanina@severstal.com
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
ISIN: US8181503025 Category Code: TST TIDM: SVST LEI Code: 213800OKDPTV6K4ONO53 Sequence No.: 58036 EQS News ID: 1020879
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