April 12, 2019

Severstal reports Q1 2019 operational results

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 2019.

Q1 2019 GROUP HIGHLIGHTS 

  • Hot metal output increased 6% q/q in Q1 2019 to 2.36 mln tonnes (Q4 2018: 2.23 mln tonnes) following short-term maintenance works at BF#2 in the previous quarter. Crude steel production grew to 3.04 mln tonnes (Q4 2018: 2.94 mln tonnes) reflecting an increase in pig iron production and production growth of EAF billets.
  • Consolidated steel product sales increased 3% q/q to 2.83 mln tonnes in Q1 2019 (Q4 2018: 2.76 mln tonnes), following short-term maintenance works at rolling-mill facilities in the previous quarter and an increase in productivity of aggregates. The share of domestic sales rose to 65% due to their increased attractiveness of domestic sales (Q4 2018: 62%).
  • The share of high value-added (HVA) products within the sales portfolio remained flat at 44% (Q4 2018: 44%), driven by a decline in sales of semi-finished products, which was offset by higher sales of galvanised, colour coated and hot rolled thick plate.
  • Coking coal concentrate sales volumes from Vorkutaugol declined 1% due to long-wall repositionings at Vorgashorskaya, Zapolyarnaya and Komsomolskaya mines, but remained at historically high levels reflecting the high production rate.
  • Iron ore pellet sales declined 4% to 2.83 mln tonnes (Q4 2018: 2.94 mln tonnes) as a result of lower production volumes in Q1 2019 and a stock sell-off in the previous quarter.

SUMMARY OF KEY PRODUCTION, SALES VOLUMES

Production, thousands of tonnes

Q1 2019

Q4 2018

Change, %

Q1 2019

Q1 2018

Change, %

Crude Steel (Russian Steel)

3,044

2,941

4%

3,044

3,033

0%

Hot metal (Russian Steel)

2,363

2,233

6%

2,363

2,347

1%

 

 

 

 

 

 

 

Sales volumes, thousands of tonnes

Q1 2019

Q4 2018

Change, %

Q1 2019

Q1 2018

Change, %

Coking coal concentrate

1,031

1,043

(1%)

1,031

628

64%

Iron ore pellets

2,832

2,943

(4%)

2,832

2,377

19%

Iron ore concentrate

1,301

1,430

(9%)

1,301

1,292

1%

Total steel products (Consolidated)

2,832

2,755

3%

2,832

2,864

(1%)

Total steel products (Russian Steel)

2,843

2,766

3%

2,843

2,874

(1%)

High value added steel products, %

Q1 2019

Q4 2018

Change, %

Q1 2019

Q1 2018

Change, %

Severstal (Consolidated)

44%

44%

(0 ppts)

44%

45%

(1 ppts)

Severstal Russian Steel

44%

44%

(0 ppts)

44%

45%

(1 ppts)

SEVERSTAL’S CONSOLIDATED SALES (NET OF INTERCOMPANY SALES)

Sales volumes, thousands of tonnes

Q1 2019

Q4 2018

Change, %

Q1 2019

Q1 2018

Change, %

Coal:

532

544

(2%)

532

404

32%

Coking coal concentrate

157

169

(7%)

157

46

n/a

Steam coal

375

375

0%

375

358

5%

Iron ore:

1,656

2,128

(22%)

1,656

1,441

15%

Iron ore pellets

1,302

1,871

(30%)

1,302

1,188

10%

Iron ore concentrate

354

257

38%

354

253

40%

Semi-finished products

121

157

(23%)

121

256

(53%)

Rolled products:

2,311

2,185

6%

2,311

2,166

7%

Hot-rolled coil

1,102

1,017

8%

1,102

963

14%

Hot-rolled plate

233

210

11%

233

198

18%

Cold-rolled coil

275

296

(7%)

275

389

(29%)

Galvanised and metallic coated coil

237

207

14%

237

198

20%

Colour coated coil

102

97

5%

102

67

52%

Long products

362

358

1%

362

351

3%

Downstream products:

400

413

(3%)

400

442

(10%)

Metalware products

126

136

(7%)

126

128

(2%)

Large diameter pipes

97

107

(9%)

97

119

(18%)

Other tubes, pipes, formed shapes

177

170

4%

177

195

(9%)

Notes: All production data is reported in thousands of tonnes;

Sales prices are stated on EXW basis;

Segmental data includes intercompany sales;

Semi-finished products include pig iron, slabs, billets, ingots, steel casting and forgings;

Large diameter pipes include all pipes with a diameter between 820 and 1420 mm.

 

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