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PAO Severstal (MICEX-RTS: CHMF; LSE: SVST), one of the world’s leading steel and steel-related mining companies, today announces its Q4 and FY 2015 financial results for the period ended 31 December 2015.
Q4 2015 vs. Q3 2015 ANALYSIS:
§ Group revenue decreased 16.1% q/q to $1,396 million (Q3 2015: $1,663 million). This primarily reflects a further decline in average selling prices and seasonally weaker sales volumes at Russian Steel. The decline was partially offset by an improved performance within the Resources division.
§ Despite the group EBITDA margin compressing 2.8 ppts q/q to 28.7% (Q3 2015: 31.5%), it remained one of the highest in the industry. Group EBITDA decreased 23.5% q/q to $401 million (Q3 2015: $524 million);
§ The net loss of $114 million (Q3 2015: $130 million) reflects a FX loss of $208 million and non-current assets impairment of $173 million. Adjusting for these non-cash items, Severstal would have posted an underlying net profit of $267 million (Q3 2015: $394 million excluding FX losses and non-current assets impairment);
§ Free cash flow decreased 49.9% q/q to $305 million (Q3 2015: $609 million), while strong free cash flow remained a strategic focus;
§ Cash outflow on capex of $122 million, 18.4% higher q/q (Q3 2015: $103 million);
§ Recommended dividend payment of 20.27 RUB per share for the three months ended 31 December 2015.