Severstal reports Q1 2020 operational results

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')

·       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.

 

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