Synopsis:
ArcelorMittal Krivoy Rog in Ukraine replaced Finance Director Sergei Plichko with Pavel Zadorozhny. The company aims for break-even in 2024 after facing significant losses in previous years, with strategic plans for improved results by the second quarter.
Article:
Ukraine's ArcelorMittal Krivoy Rog (AMKR) underwent a shift in its financial leadership, terminating Finance Director-Chief Accountant Sergei Plichko via a decree from the general director on December 25, 2023. As per reports in the National Securities and Stock Market Commission system, Pavel Zadorozhny assumed the role of acting financial director - chief accountant effective the same day.
Zadorozhny, formerly the Deputy Finance Director of Accounting and Financial Reporting within the company's Finance Administration, received the appointment order from the acting HR Director for a tenure until January 5, 2024. Notably, Plichko held the finance director position at the plant for seven years.
AMKR aims to achieve financial equilibrium in 2024 following substantial losses, notably a $1.3 billion loss in 2022 and a reduced figure of $320 million (forecasted year-end) in 2023, largely attributed to the parent company's support. CEO Mauro Longobardo expressed optimism, targeting improved results by the second quarter in line with the next year's business plan.
The upcoming shareholders' meeting on December 28 will deliberate on financial and production activities for 2021-2022, addressing the outstanding loss of UAH 3.3 billion from the previous year. The proposed resolution suggests utilizing retained earnings to offset these losses and includes discussions on enhancing the PJSC's financial status.
ArcelorMittal Corporation infused more than $600 million into its Krivoy Rog business earlier in the year, while the EBRD extended financial aid, loaning $100 million in December 2022 and an additional $150 million in November 2023 to bolster the company's working capital.
ArcelorMittal Krivoy Rog stands as Ukraine's principal producer of rolled steel, specializing in long products, particularly rebar and wire rods.
Conclusion:
AMKR's leadership restructuring with the replacement of Sergei Plichko by Pavel Zadorozhny hints at strategic shifts within the company amidst its pursuit of financial stability in the face of past losses. The impending shareholders' meeting and financial aid injections underscore efforts to steer the company toward improved financial health.
