Severstal reports Q1 2015 financial results

PAO Severstal (MICEX-RTS: CHMF; LSE: SVST), one of the world’s leading steel and steel-related mining companies, today announces its Q1 2015 financial results for the period ended 31 March 2015.

Q1 2015 vs. Q4 2014 ANALYSIS:

  • EBITDA margin increased by 6.4 ppts q/q to a record 38.5% (Q4 2014: 32.1%), representing the highest level in Severstal’s history as a public company and primarily reflecting ongoing efficiency improvements as well as lower input costs with RUB devaluation mitigating the impact of lower selling prices. Group EBITDA decreased a negligible 2.0% q/q to $590 million (Q4 2014: $602 million);
  • Group revenue decreased 18.5% q/q to $1,531 million (Q4 2014: $1,878 million) despite solid demand across both domestic and export markets reflecting a decline in global steel prices and steelmaking raw materials prices more than offsetting increases in RUB-denominated selling prices;
  • Net profit of $343 million (Q4 2014: net lossof $795 million) was marginally impacted by FX translation losses of continuing operations of $31 million. Adjusting for those non-cash items, Severstal would have posted a net profit of $374 million (Q4 2014: net profit of $534 million excluding impairments);
  • Free cash flow of $209 million (Q4 2014: $425 million) generated in line with our key strategic focus. Q/q decline of 50.8% primarily reflects an increase in stock to normalized level after divesting inventories during Q4 2014 against strong demand;
  • Capex of $103 million, 34.4% lower q/q (Q4 2014: $157 million) reflecting our prudent approach to investments as well as the completion of most large-scale development projects;
  • Recommended dividend payment of 12.81 RUB per share for the three months ended 31 March 2015.

The full version of the release