TIDMEVR
RNS Number : 9999E
Evraz Group S.A.
15 April 2011
EVRAZ GROUP 1Q 2011 OPERATIONAL RESULTS
15 April 2011 - Evraz Group S.A. (LSE: EVR) ("EVRAZ") today
released its operational results for the first quarter of 2011.
HIGHLIGHTS:
-- Production of steel and major rolled products increased in
1Q11 as a result of completion of converter shop modernisation at
the end of 2010 and improved demand in key markets.
-- Pricing for major product groups increased, reflecting
continuous recovery in all the world markets.
-- Iron ore production grew up as a result of efficiency
improvements
-- Coking coal production decreased due to one-off events such
as longwall repositioning and temporary closure of a mine for
air-gas mix monitoring and expected to be higher in 2011 than in
2010.
STEEL
The production of finished goods in a year on year first quarter
comparison demonstrated growth of 3-14% across the product set. On
a sequential quarter-on-quarter basis, the data reflects
seasonality in the business. Consolidated rolled products volumes
increased 7.0% in 1Q11 compared to the previous quarter. There was
a 14.0% increase in production of semi-finished products for sale
driven by demand and higher prices globally; a 20.2% increase in
flat-rolled products output due to recovering markets in Europe and
North America; and a 23.2% decrease in tubular goods production due
to spring breakup season in North America.
Russia
Russian mills produced more crude steel (+5.4% vs. 4Q10 and
+10.0% vs. 1Q10) following modernisation of the converter shop at
EVRAZ NTMK which was completed at the end of 2010.
Production of steel rolled products has increased both compared
to the previous quarter (+3.7%) and to the similar period last year
(+10.1%) as a result of crude steel volumes expansion and a
continuous recovery in the Russian and global markets. The
year-on-year output of construction products was 10.0% higher in
1Q11 than in 1Q10 and slightly decreased compared to 4Q10 due to
seasonal slowdown of the construction activity.
Ukraine
EVRAZ DMZ produced 26.3% more semi-finished products and 13.9%
less construction products in 1Q11 compared to 4Q10 due to
seasonality.
Europe
In 1Q11, EVRAZ Vitkovice Steel doubled the production of crude
steel compared with 4Q10, after reaching an agreement on hot metal
supplies in mid-November 2010.
Flat-rolled product output increased by 22.3% in 1Q11 compared
to 4Q10 as a result of significant market improvement, particularly
in Germany and Central Europe. Production of premium plate and cut
shapes (Other steel products) increased due to higher demand from
energy-related (wind towers, line pipes) and yellow goods
sectors.
North America
Production of tubular goods decreased by 23.2% against the 4Q10
volumes and remained at the same level as in 1Q10 driven by the
seasonality of the tubular goods industry. 4Q is typically a strong
period and in March, April, and May, during the spring breakup,
when oil and gas industry activity is low, tubular mills
intentionally reduce production in anticipation of a decline in
sales. The seasonal weakening of demand did not impact EVRAZ
seamless pipe business which continued its expansion through market
share gain. A big large diameter pipe order at the EVRAZ Regina
spiral weld mill was completed in 2010, but production of large
diameter pipes at EVRAZ Regina remains strong. The mill is now
producing pipes under small orders from different customers which
increases overall changeover time.
In 1Q11, flat-rolled production increased by 30.1% from Q4 2010
and by 10.4% from 1Q10 as a result of significant growth in
end-user demand for plate and general improvement of the market
sentiment.
Production of railway products at EVRAZ Pueblo showed a 28.3%
increase year over year reflecting a general increase in the US
rail market.
Construction product output decreased by 10.5% in 1Q11 compared
to 1Q last year and by 23.8% compared to 4Q10. Beginning from the
first quarter of 2010, the production of rod and bar decreased
quarter over quarter at EVRAZ Pueblo as Evraz has prioritised the
production of seamless pipes and rails, two higher margin products,
over rods and bars, as EVRAZ Pueblo has limitations on total steel
output.
South Africa
Pig iron production and crude steel declined by 7.9% and 5.0%
respectively vs. 4Q10 due to operational issues at EVRAZ Highveld's
iron and steel making facilities.
Production of construction steel increased by 35.4% compared to
4Q10 - the market recovered after the weakness in 4Q10 that had led
to the rolling mill's three-week shutdown in November-December
2010. Volumes of flat-rolled products increased by 10.2% vs. 4Q10
due to stronger demand for plate and its shortage in the local
market as well as restocking. Improved demand for finished products
almost fully eliminated export of semi-finished products.
MINING
Iron Ore
Sinter and pellet production in Russia increased by 19.2% and
1.1% respectively in 1Q11 vs. 4Q10 and by 11.3% and 14.6%
respectively vs. 1Q10 as a result of increased mined iron ore
volumes.
Sukha Balka in Ukraine produced 54.4% less lumpy ore in 1Q11
compared to 4Q10 because of a scheduled lifting equipment upgrade
at the Yubileynaya mine.
Coking Coal
Raw coking coal production at Yuzhkuzbassugol declined by 17.4%
against 4Q10 resulting from the temporary technical issues:
longwall repositioning at the Yesaulskaya mine and temporary
shutdown of the Alardinskaya mine to conduct air-gas mix
monitoring. We expect coking coal volumes to recover in the next
quarter with 2011 volumes being higher than in 2010.
Steam Coal
Raw steam coal production was up 37.4% in 1Q11 compared to 4Q10
after the completion of the longwall equipment repositioning at the
Gramoteinskaya mine held in September 2010 through January 2011.
The output decreased by 45.2% compared to 1Q10, following shutdown
of the Tagaryshskaya mine for a safety inspection in 4Q10 and the
resulting decision to lay up the mine.
The production of steam concentrate decreased by 10.2% vs. 4Q10
due to refusal of the third party, the Listvyazhnaya Coal Washing
Plant, to concentrate raw steam coal mined by Yuzhkuzbassugol.
VANADIUM
Production of vanadium slag, a by-product of steel production,
increased by 12.9% at NTMK in Russia and decreased by 2.6% at
Highveld in South Africa in 1Q11 compared to 4Q10 in correlation
with steel production.
Production of ferrovanadium rose by 33.2 % and of Nitrovan(R) by
38.3% in 1Q11, with all the sites operating at maximum V2O5
production capacity and with restart of slag processing in China
which increased V2O5 available for processing in 1Q11.
* * *
Please note that the total volume of rolled steel products in
the table below excludes those re-rolled at other Group's mills.
These volumes are eliminated as intercompany sales for purposes of
Evraz's consolidated operating results.
PRODUCTION VOLUMES
1Q11/ 1Q 2011/
Product, '000 tonnes 1Q 1Q10, 4Q 2010,
unless otherwise stated 1Q 2011 2010 change* 4Q 2010 change*
Steel products
Coke (saleable) 426 616 (30.8)% 396 7.6%
Pig iron 3,066 2,991 2.5% 2,889 6.1%
Pig iron (saleable) 22 20 5.9% 32 (33.2)%
Crude steel 4,388 3,997 9.8% 4,145 5.9%
Rolled products, net of
re-rolled volumes 4,022 3,576 12.5% 3,760 7.0%
Semi-finished products 1,096 955 14.8% 962 14.0%
Construction products 1,274 1,197 6.4% 1,302 (2.2)%
Railway products 502 451 11.5% 466 7.8%
Flat-rolled products 720 632 13.8% 599 20.2%
Tubular products 199 193 2.9% 259 (23.2)%
Other steel products 232 147 57.1% 173 34.0%
Russia
Coke (saleable) 140 261 (46.4)% 126 11.3%
Pig iron 2,654 2,571 3.2% 2,462 7.8%
Pig iron (saleable) 15 19 (21.7)% 17 (11.0)%
Crude steel 3,187 2,897 10.0% 3,024 5.4%
Rolled products, net of
re-rolled volumes 2,858 2,596 10.1% 2,757 3.7%
Semi-finished products 1,231 1,106 11.3% 1,162 5.9%
Construction products 1,003 913 10.0% 1,020 (1.7)%
Railway products 387 360 7.2% 349 10.9%
Flat-rolled products 75 90 (16.3)% 77 (3.0)%
Other steel products 162 128 27.1% 148 9.4%
Ukraine
Coke (saleable) 286 355 (19.3)% 270 5.9%
Pig iron 220 240 (8.2)% 219 0.6%
Pig iron (saleable) 7 1 354.9% 16 (56.7)%
Crude steel 230 249 (7.3)% 218 5.5%
Rolled products 204 222 (8.1)% 193 5.6%
Semi-finished products 74 120 (38.5)% 59 26.3%
Construction products 105 96 8.7% 122 (13.9)%
Other steel products 25 6 345.0% 13 95.1%
Europe
Crude steel 182 96 90.2% 93 94.5%
Rolled products 369 248 49.2% 283 30.7%
Construction products 32 36 (12.9)% 31 1.6%
Flat-rolled products 302 205 47.2% 247 22.3%
Other steel products 36 6 477.7% 5 685.4%
North America
Crude steel 588 574 2.5% 598 (1.6)%
Rolled products, net of
re-rolled volumes 658 627 5.0% 668 (1.4)%
Construction products 80 104 (23.8)% 89 (10.5)%
Railway products 116 90 28.3% 117 (1.1)%
Flat-rolled products 264 239 10.4% 203 30.1%
Tubular products 199 193 2.9% 259 (23.2)%
South Africa
Pig iron 192 180 6.6% 209 (7.9)%
Crude steel 201 183 9.9% 212 (5.0)%
Rolled products 157 154 2.5% 146 7.8%
Semi-finished products 17 0 n/a 28 (39.7)%
Construction products 54 48 13.5% 40 35.4%
Flat-rolled products 79 98 (20.0)% 71 10.2%
Other steel products 8 8 3.5% 7 16.2%
Mining products
Iron ore
Lumpy ore (Ukraine)( ) 345 476 (27.7)% 756 (54.4)%
Concentrate, saleable
(Russia) 1,466 1,421 3.1% 1,472 (0.4)%
Sinter (Russia) 1,121 1,077 11.3% 940 19.2%
Pellets (Russia) 1,516 1,323 14.6% 1,499 1.1%
Fines ore (South
Africa) 152 166 (8.1)% 152 0.4%
Lumpy ore (South
Africa) 359 433 (16.9)% 391 (8.1)%
Coal
Coking coal (mined) 1,839 2,211 (16.8)% 2,226 (17.4)%
Steam coal (mined) 712 1,300 (45.2)% 518 37.4%
Concentrate
(production) 1,768 1,830 (3.4)% 1,808 (2.2)%
Steam concentrate
(production) 177 332 (46.7)% 197 (10.2)%
Vanadium products (tonnes
of V) (1)
Vanadium in slag (gross
production) 4,936 5,060 (2.4)% 4,980 (0.9)%
Russia 2,925 3,158 (7.4)% 2,590 12.9%
South Africa 2,011 1,901 5.7% 2,390 (15.9)%
Vanadium in final products
(saleable)
Ferrovanadium 4,021 3,873 3.8% 3,018 33.2%
Produced at own
facilities 1,502 1,407 6.8% 1,268 18.5%
Processed at 3(rd)
parties'
facilities 2,519 2,466 2.1% 1,750 43.9%
Nitrovan(R) 682 661 3.1% 493 38.3%
Oxides, vanadium
aluminium and
chemicals 227 355 (35.9)% 350 (35.1)%
Equity investments
Raspadskaya (2)
Coking coal (mined) 1,775 3,031 (41.4)% 1,274 39.4%
*Numbers may not add to totals due to rounding. Percent changes
based on numbers prior to rounding.
1 Calculated in pure vanadium equivalent.
2 Evraz Group holds a 40% effective interest in the Raspadskaya
coal company.
AVERAGE SELLING PRICES
USD/tonne (ex works)
unless otherwise stated 1Q 2011 4Q 2010 1Q 2010
Steel products
Russia
Coke 243 210 164
Pig iron 455 392 325
Rolled products
Semi-finished products 505 452 333
Construction products 736 639 500
Railway products 829 767 673
Flat-rolled products 739 607 503
Other steel products 766 699 550
Ukraine
Coke 304 279 234
Pig iron 513 365 363
Rolled products
Semi-finished products 536 511 366
Construction products 683 599 473
Other steel products 843 891 1,110
Europe
Rolled products
Construction products 869 821 684
Flat-rolled products 862 804 579
North America
Rolled products
Construction products 836 764 724
Railway products 1,021 941 924
Flat-rolled products 1,035 856 798
Tubular products 1,448 1,426 1,342
South Africa
Rolled products
Semi-finished products 500 429 337
Construction products 673 586 675
Flat-rolled products 740 771 655
Other steel products 585 446 814
Mining products
Iron ore
Lumpy ore (Ukraine) 70 60 35
Concentrate, saleable
(Russia) 110 88 70
Sinter (Russia) 132 107 151
Pellets (Russia) 128 97 49
Fines ore (South Africa) 31 31 26
Coal
Coking coal 95 80 55
Steam coal 34 27 25
Concentrate 181 158 113
Steam concentrate 73 52 52
Vanadium products (USD/t
of V)
Vanadium in final products
Ferrovanadium 26,698 27,939 23,838
Nitrovan(R) 29,149 28,958 26,089
Oxides, vanadium aluminium
and chemicals 40,127 39,516 36,614
Notes:
Semi-finished products include slabs, billets, pipe blanks and
other semi-finished products.
Construction products include beams, channels, angles, rebars,
wire rods, wire, and other construction products.
Railway products include rails, wheels, tyres and other railway
products.
Flat-rolled products include commodity plate, specialty plate
and other flat products.
Tubular products include large diameter line pipes, ERW pipes
and casings, seamless pipes and other tubular products.
Other steel products include rounds, grinding balls, mine
uprights, strips etc. For Ukraine they also include railway
products, for Europe - slabs and crane rails; for South Africa -
rails.
###
For further information:
Media contact: Oleg Kuzmin VP, Corporate Communications +7 495
937 6871 media@evraz.com
Investor contact: Alexander Boreyko Director, Investor Relations
+7 495 232 1370
ir@evraz.com
Evraz Group S.A. (EVRAZ) is a vertically-integrated steel,
mining and vanadium business with operations in the Russian
Federation, Ukraine, the USA, Canada, the Czech Republic, Italy and
South Africa. The Company was ranked the 14(th) largest steel
producer in the world based on crude steel production of 15.3
million tonnes in 2009. In 2010, the Company produced 16.3 million
tonnes of crude steel and sold 15.5 million tonnes of steel rolled
products. EVRAZ's internal consumption of iron ore and coking coal
is covered by its mining operations. EVRAZ's consolidated revenues
for the year ended 31 December 2010 were US$13,394 million and
consolidated adjusted EBITDA amounted to US$2,350 million.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCEANLSFALFEEF
Evraz (LSE:EVR)
Historical Stock Chart
From Jun 2024 to Jul 2024
Evraz (LSE:EVR)
Historical Stock Chart
From Jul 2023 to Jul 2024
