EVRAZ Announces Financial Results for H1 of 2021
Russian steel maker EVRAZ plc has announced its unaudited interim financial results for the six months ended 30 June 2021. Chief Executive Officer Mr Alexander Frolov said “The recovery on the global steel market observed since the second half of 2020 accelerated in the first half of 2021. Activity in steel-consuming industries continued returning to pre-pandemic levels, driving steel prices and demand. In the reporting period, we continued to implement our main development initiatives. The upgrade of the rail and beam mill at EVRAZ NTMK and construction of new long rail mill at EVRAZ Pueblo projects continued according to schedule and made good progress. Overall CAPEX stood at USD 430 million, including USD 258 million for development projects.”
H1 2021 HIGHLIGHTS
Consolidated EBITDA totalled USD 2,082 million, up 94.0% YoY from USD 1,073 million in H1 2020. The EBITDA margin rose to 33.7% from 21.5% in H1 2020. Supporting factors included higher steel, vanadium and coal product sales prices. Cost-cutting and customer focus initiatives also generated an effect of USD 256 million in EBITDA.
Net profit totalled USD 1,212 million, compared with USD 513 million in H1 2020.
The cash cost of slabs increased to USD 283 per tonne from USD 210 per tonne in H1 2020
In the second half of 2021, Evraz expects global markets to remain fairly healthy, despite a possible correction in steel prices. It said "Steel prices look unsustainable at current levels and there is a possibility of a gradual price decline in the coming months."