TIDMEVR
RNS Number : 1690F
Evraz Plc
25 October 2018
EVRAZ Q3 2018 TRADING UPDATE
25 October 2018 - EVRAZ plc (LSE: EVR; "EVRAZ" or the "Group")
today released its trading update for the third quarter of
2018.
Please note that the sales volumes of vanadium final products
for Q2 2018 have been updated due to an adjustment in
classification. See the respective notes below the tables on pages
2 and 4 for details.
Q3 2018 vs Q2 2018 HIGHLIGHTS:
-- In Q3 2018, EVRAZ' consolidated crude steel output fell by
10.3% QoQ to 3.1 million tonnes, primarily due to lower pig iron
production.
-- Sales of finished products descended slightly by 1.2%, which
was mostly attributable to lower sales volumes of railway products
and flat-rolled products. Sales volumes of semi-finished products
edged down by 0.7%, primarily due to lower crude steel
production.
-- Production of raw coking coal climbed by 9.6% QoQ to 5.9
million tonnes due to increased productivity at the Raspadsky
open-pit mine.
-- Coking coal product sales dropped by 8.3% QoQ, mainly due to
logistical limitations amid maintenance works at railroads in
Russia.
-- External iron ore product sales fell by 15.9% QoQ, primarily
as a result of increasing stockpiles to ensure stable production
volumes and steady shipments to customers during the capital
repairs of EVRAZ KGOK's indurating machine no. 1 in
September-October.
-- Sales of vanadium products declined by 3.9% QoQ, mainly due
to large maintenance at EVRAZ Vanady-Tula to reline the roasting
kiln refractories as well as replace the grinding mill (during
September and October) and regular annual maintenance at EVRAZ
Nikom.
Q3 2018/ Q2 2018,
Product, '000 tonnes Q3 2018 Q2 2018 change 9m 2018 9m 2017 9m 2018/ 9m 2017, change
------------------------- -------- -------- ------------------------ -------- -------- -------------------------
Total crude steel
production 3,106 3,463 -10.3% 9,920 10,487 -5.4%
Russia 2,642 2,996 -11.8% 8,368 8,525 -1.8%
Ukraine - - 0.0% 154 661 -76.7%
North America* 464 467 -0.6% 1,398 1,301 7.5%
Total raw coking coal
mined 5,944 5,422 9.6% 17,335 17,714 -2.1%
Total coking coal
concentrate
production 3,906 3,907 0.0% 11,967 11,031 8.5%
Iron ore products
production 3,293 3,424 -3.8% 10,148 10,527 -3.6%
Total sales of steel
products 3,108 3,140 -1.0% 9,317 9,609 -3.0%
Semi-finished products 1,194 1,202 -0.7% 3,700 4,062 -8.9%
Finished products 1,914 1,938 -1.2% 5,617 5,547 1.3%
Total sales of
third-party steel
products 255 247 3.2% 672 612 9.8%
Sales of coking coal
products 2,645 2,885 -8.3% 8,244 7,389 11.6%
Sales of iron ore
products 427 508 -15.9% 1,520 2,301 -33.9%
Sales of vanadium final
products** 3,238 3,370 -3.9% 9,740 11,458 -15.0%
------------------------- -------- -------- ------------------------ -------- -------- -------------------------
Note. Numbers in this table and the tables below may not add up
to totals due to rounding.
* The Q3 2018 production and sales volumes of EVRAZ North
America are preliminary.
** in tonnes of pure vanadium; the Q1 and Q2 2018 data have been
updated due to an adjustment in classification (the updated figure
for Q1 2018 is 3,131)
STEEL SEGMENT
Total production volumes (RUSSIA and UKRAINE)
Q3 2018 / Q2 2018, 9m 2018 / 9m 2017,
Product, '000 tonnes Q3 2018 Q2 2018 change 9m 2018 9m 2017 change
------------------------ -------- -------- ----------------------- --------- --------- -----------------------
Pig iron production 2,393 2,681 -10.7% 7,645 8,515 -10.2%
EVRAZ ZSMK 1,193 1,515 -21.3% 4,105 4,118 -0.3%
EVRAZ NTMK 1,200 1,166 2.9% 3,386 3,628 -6.7%
EVRAZ DMZ 0 0 n/a 153 769 -80.1%
Crude steel production 2,642 2,996 -11.8% 8,522 9,186 -7.2%
EVRAZ ZSMK 1,605 1,962 -18.2% 5,357 5,288 1.3%
EVRAZ NTMK 1,037 1,034 0.3% 3,011 3,237 -7.0%
EVRAZ DMZ 0 0 n/a 154 661 -76.7%
Iron ore products
production 3,293 3,424 -3.8% 10,148 10,527 -3.6%
Pellets (EVRAZ KGOK) 1,661 1,626 2.2% 4,938 4,833 2.2%
Sinter (EVRAZ KGOK) 898 904 -0.7% 2,633 2,615 0.7%
Concentrate saleable
(Evrazruda, EVRAZ
KGOK) 734 894 -17.9% 2,577 3,079 -16.3%
Coking coal concentrate
production 498 518 -3.9% 1,538 1,536 0.1%
From own raw coal* 321 319 0.6% 922 643 43.4%
From third-party raw
coal 177 199 -11.1% 616 893 -31.0%
Gross vanadium slag
production** 4,261 4,394 -3.0% 12,675 14,264 -11.1%
------------------------ -------- -------- ----------------------- --------- --------- -----------------------
Note. Numbers in this table and the tables below may not add up
to totals due to rounding.
* from Coal segment
** in tonnes of pure vanadium
In Q3 2018, EVRAZ' pig iron output at Russian mills dropped by
10.7% QoQ to 2.4 million tonnes. This was mainly due to scheduled
capital repairs of EVRAZ ZSMK's blast furnace no. 3 in
August-November and an incident involving EVRAZ ZSMK's blast
furnace no. 1 in August.
Crude steel output fell by 11.8% QoQ to 2.6 million tonnes
following a decrease in overall pig iron output.
Iron ore product output descended by 3.8% QoQ to 3.3 million
tonnes, primarily due to a decrease in Evrazruda's saleable
concentrate production following the incident involving EVRAZ
ZSMK's blast furnace no. 1 in August.
Consolidated output of vanadium slag fell by 3.0% QoQ due to
lower volumes of pig iron duplex processing as a result of the cold
repair of EVRAZ NTMK's converter no. 1 in September.
Total sales volumes (RUSSIA, UKRAINE, KAZAKHSTAN and EUROPE)
Q3 2018 / Q2 2018, 9m 2018 / 9m 2017,
Product, '000 tonnes Q3 2018 Q2 2018 change 9m 2018 9m 2017 change
------------------------ -------- -------- ------------------------ --------- --------- ------------------------
Coke 135 73 84.9% 318 594 -46.5%
Steel products,
external sales 2,571 2,599 -1.1% 7,757 8,199 -5.4%
Semi-finished products 1,194 1 202 -0.7% 3,700 4,062 -8.9%
Slabs 415 540 -23.1% 1,377 1,414 -2.6%
Billets 642 538 19.3% 1,943 2,051 -5.3%
Other steel products 137 123 11.4% 379 597 -36.5%
Finished products 1,377 1,397 -1.4% 4,057 4,137 -1.9%
Construction products 826 806 2.5% 2 367 2,593 -8.7%
Railway products 341 361 -5.5% 1 010 957 5.5%
Flat products 75 94 -20.2% 263 175 50.3%
Other steel products 135 136 -0.7% 417 412 1.2%
Steel products,
inter-segment sales 120 174 -31.0% 423 455 -7.0%
Sales of third-party
steel products,
external sales 255 247 3.2% 672 612 9.8%
Sales of iron ore
products, external
sales 427 508 -15.9% 1,520 2,301 -33.9%
Pellets 425 504 -15.7% 1,514 1,115 35.8%
Other 2 4 -50.0% 6 1,186 -99.5%
Sales of vanadium final
products* 3,238 3,370 -3.9% 9,740 11,458 -15.0%
------------------------ -------- -------- ------------------------ --------- --------- ------------------------
Note. Numbers in this table and the tables below may not add to
totals due to rounding.
* in tonnes of pure vanadium; the Q1 and Q2 2018 data have been
updated due to an adjustment in classification (the updated figure
for Q1 2018 is 3,131)
In Q3 2018, external sales of steel products decreased by 1.1%
QoQ. Sales of semi-finished products remained almost flat due to a
reduction in slab sales volumes amid lower crude steel output,
albeit partly offset by increased billet sales volumes from stock
accumulated in Q2 2018.
Sales of finished products decreased by 1.4% QoQ, driven mainly
by lower sales of railway and flat-rolled products.
Sales of railway products fell by 5.5% QoQ due to capital
repairs of EVRAZ ZSMK's rail and beam shop in August.
Sales of flat products dropped by 20.2% QoQ, mainly due to
reduced production at EVRAZ Palini & Bertoli following
unscheduled furnace repairs in July and a maintenance stop in
August.
Sales of iron ore products decreased by 15.9% QoQ, primarily as
a result of increasing stockpiles to ensure stable production
volumes and steady shipments to customers during the capital
repairs of EVRAZ KGOK's indurating machine no. 1 in
September-October.
Sales of vanadium products declined by 3.9% QoQ, mainly due to
large maintenance at EVRAZ Vanady-Tula to reline the roasting kiln
refractories as well as replace the grinding mill (during September
and October) and regular annual maintenance at EVRAZ Nikom.
Q3 2018 / Q2 2018, 9m 2018 / 9m 2017,
Cash cost, US$/tonne Q3 2018 Q2 2018 change 9m 2018 9m 2017 change
------------------------- -------- -------- ----------------------- --------- --------- ------------------------
Slab cash cost
(vertically integrated) 209 240 -12.9% 235 244 -3.7%
Iron ore products (Fe
62%) 34 35 -2.9% 36 34 5.9%
Average selling prices
US$/tonne (ex works) Q3 2018 Q2 2018 9m 2018 9m 2017
------------------------------------------------------------- -------- -------- -------- --------
Coke 201 244 229 206
Steel products 541 558 548 448
Semi-finished products* 466 482 464 349
Construction products 567 608 598 524
Railway products 676 687 693 637
Other steel products 645 643 638 530
Pellets 68 65 64 65
Metal Bulletin Ferro-Vanadium basis 78% min, free DDP,
consumer plant, 1st grade Western Europe** 85.46 69.15 72.17 30.46
Ryan's Notes N.A. FeV 80% min, US ex-warehouse, duty paid** 87.49 75.69 75.50 31.08
------------------------------------------------------------- -------- -------- -------- --------
* includes prices for pig iron
** US$/kgV
In Q4 2018, the Group expects its pig iron production to
increase by roughly 3-5% QoQ due to the completion of scheduled
capital repairs of EVRAZ ZSMK's blast furnace no. 3 in December and
a lack of repairs at the electric-arc furnace smelting shop. In Q4
2018, pellet production volumes at EVRAZ KGOK are expected to
return to the Q2 2018 level.
STEEL, NORTH AMERICA SEGMENT
Production and sales volumes
Q3 2018 / Q2 2018, 9m 2018 / 9m 2017,
Product, '000 tonnes Q3 * 2018 Q2 2018 change 9m 2018 9m 2017 change
------------------------ ---------- -------- ----------------------- --------- --------- -----------------------
Crude steel 464 467 -0.6% 1,398 1,301 7.5%
EVRAZ Pueblo 232 218 6.4% 678 619 9.5%
EVRAZ Regina 232 249 -6.8% 720 682 5.6%
Sales of steel products 537 541 -0.7% 1,560 1,410 10.6%
Construction products 73 73 0.0% 215 182 18.1%
Railway products 95 112 -15.2% 303 295 2.7%
Flat-rolled products 144 160 -10.0% 446 402 10.9%
Tubular products 225 196 14.8% 596 531 12.2%
* The Q3 2018 production and sales volumes data are
preliminary.
In Q3 2018, crude steel production edged down by 0.6% QoQ,
primarily driven by a planned maintenance outage at EVRAZ Regina,
which was offset by increased production at EVRAZ Pueblo due to
improved operational performance.
Sales of construction products in Q3 2018 were flat QoQ.
Railway products sales decreased by 15.2% QoQ due to the planned
maintenance outage.
Flat-rolled products sales fell by 10.0% QoQ, primarily due to
operational issues related to the commissioning of new control
software on the rolling mill and increased volumes to support the
tubular business.
Tubular product sales volumes climbed by 14.8% QoQ, mostly as a
result of improved sales of spiral and small-diameter line
pipe.
Prices for construction and flat-rolled products increased
during Q3 2018, reflecting higher prevailing prices for scrap and
other inputs, reduced pressure from imports, the impact of Section
232 tariffs and improving demand fundamentals. Prices for tubular
products also increased in the period due to the customer mix.
Average selling prices
US$/tonne (ex works) Q3 2018 Q2 2018 9m 2018 9m 2017
----------------------- -------- -------- -------- --------
Construction products 869 809 796 609
Flat-rolled products 1,145 991 974 796
Tubular products 1,236 1,207 1,228 1,070
----------------------- -------- -------- -------- --------
In Q4 2018, crude steel output is expected to be flat QoQ.
Tubular product volumes are expected to climb by 5-10%; flat-rolled
product volumes are expected to edge down QoQ due to a planned
maintenance outage; construction product volumes are expected to
grow by 5-10% QoQ; and rail volumes are expected to surge by 15-20%
following the completion of planned outages in Q3 2018.
COAL SEGMENT
Production volumes
Q3 2018 / Q2 2018, 9m 2018 / 9m 2017,
Product, '000 tonnes Q3 2018 Q2 2018 change 9m 2018 9m 2017 change
------------------------- -------- -------- ------------------------ -------- -------- -------------------------
Raw coking coal (mined) 5,944 5,422 9.6% 17,335 17,714 -2.1%
Yuzhkuzbassugol 2,697 2,755 -2.1% 8,172 8,499 -3.8%
Raspadskaya 2,926 2,430 20.4% 8,364 8,559 -2.3%
Mezhegeyugol 321 237 35.4% 799 656 21.8%
Coking coal concentrate
(production) 3,408 3,389 0.6% 10,428 9,495 9.8%
Produced at
Yuzhkuzbassugol coal
washing plants 1,496 1,725 -13.3% 4,991 4,594 8.6%
Produced at Raspadskaya
coal washing plant 1,912 1,664 14.9% 5,437 4,901 10.9%
------------------------- -------- -------- ------------------------ -------- -------- -------------------------
In Q3 2018, production of raw coking coal rose by 9.6% QoQ,
primarily due productivity at the Raspadsky open-pit mine.
Coking coal concentrate output was almost flat QoQ. While
volumes at the Raspadskaya coal washing plant increased in line
with the higher production volumes of mined raw coking coal this
was partly offset by a decrease at the Yuzhkuzbassugol coal washing
plants.
Coking coal concentrate production at Yuzhkuzbassugol's coal
washing plants went down QoQ amid a temporary shortage of raw coal
available for processing in Q3 2018 due to the scheduled longwall
repositioning at the Erunakovskaya-VIII and Esaulskaya mines at the
end of Q2 2018. In addition, less raw coal from the Raspadskaya
mine was used for processing at the Yuzhkuzbassugol coal washing
plants.
Sales volumes
Q3 2018 / Q2 2018, 9m 2018 / 9m 2017,
Product, '000 tonnes Q3 2018 Q2 2018 change 9m 2018 9m 2017 change
------------------------ -------- -------- ------------------------ --------- --------- ------------------------
External sales 2,645 2,885 -8.3% 8,244 7,389 11,6%
Raw coking coal 570 484 17.8% 1,377 1,599 -13,9%
Coking coal
concentrate 2,075 2,401 -13.6% 6,867 5,790 18,6%
Intersegment sales 1,613 1,489 8.3% 4,545 4,296 5,8%
Raw coking coal 545 514 6.0% 1,455 860 69,2%
Coking coal
concentrate 1,068 975 9.5% 3,090 3,436 -10,1%
------------------------ -------- -------- ------------------------ --------- --------- ------------------------
In Q3 2018, external sales volumes of raw coking coal dropped by
8.3% QoQ, mainly due to logistical limitations amid maintenance
works at railroads in Russia.
Q3 2018 / Q2 2018, 9m 2018 / 9m 2017,
Cash cost, US$/tonne Q3 2018 Q2 2018 change 9m 2018 9m 2017 change
------------------------- -------- -------- ----------------------- --------- --------- ------------------------
Coking coal concentrate 49 48 2.1% 47 42 11.9%
Average selling prices
US$/tonne (ex works) Q3 2018 Q2 2018 9m 2018 9m 2017
------------------------- -------- -------- -------- --------
Raw coking coal 57 64 65 60
Coking coal concentrate 113 119 123 118
------------------------- -------- -------- -------- --------
In Q3 2018, coking coal sales prices moved in line with global
benchmarks.
In Q4 2018, raw coal production is expected to increase QoQ,
driven by the launch of a new longwall in September at the
Raspadskaya mine.
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. They also include railway products for
Ukraine.
###
For further information:
Media Relations:
London: +44 207 832 8998 Moscow: +7 495 937 6871
media@evraz.com
Investor Relations:
London: +44 207 832 8990 Moscow: +7 495 232 1370
ir@evraz.com
EVRAZ is a vertically integrated steel, mining and vanadium
business with operations in the Russian Federation, Kazakhstan, US,
Canada, Czech Republic and Italy. EVRAZ is among the top steel
producers in the world based on crude steel production of 14
million tonnes in 2017. A significant portion of the Group's
internal consumption of iron ore and coking coal is covered by its
mining operations. The Group's consolidated revenues for the year
ended 31 December 2017 were US$10,827 million, and consolidated
EBITDA amounted to US$2,624 million.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
TSTEAPESADXPFEF
(END) Dow Jones Newswires
October 25, 2018 04:45 ET (08:45 GMT)
Evraz (LSE:EVR)
Historical Stock Chart
From Jun 2024 to Jul 2024
Evraz (LSE:EVR)
Historical Stock Chart
From Jul 2023 to Jul 2024