EVRAZ Publishes Financial Results for 2020
Russian steel maker EVRAZ plc announced audited financial results for 2020. EVRAZ President Mr Alexander Frolov said “2020 was an unprecedented year,
Russian steel maker EVRAZ plc announced audited financial results for 2020. EVRAZ President Mr Alexander Frolov said “2020 was an unprecedented year, it changed the world and the way we do business. The global uncertainty caused by the COVID-19 pandemic has had a profound impact on economic processes and severe pressure on global markets. Nevertheless, thanks to the upturn in the markets in the second half of the year, the company showed decent operating and financial results. In particular, EBITDA reached USD 2.212 billion, while EBITDA margin increased to 22.7%. Moreover, the implementation of EVRAZ's efficiency improvement program had an effect on EBITDA in the amount of USD 426 million due to measures to reduce costs and develop customer relationships.
Key events of 2021
The total effect on EBITDA from activities under the program to improve efficiency, reduce costs and develop customer relationships was USD 426 million
Consolidated EBITDA amounted to USD 2.212 billion, having decreased by 15% compared to 2019, EBITDA margin increased to 22.7% from 21.8% in 2019
Net income rose to USD 858 million from USD 365 million in 2019.
Slab production costs declined to USD 213 per tonne from USD 236 per tonne in 2019 due to lower prices for raw materials, better feed mix and increased own raw material volumes, as well as lower costs of consumables, services and repairs
Mr Frolov added “In 2021, EVRAZ will continue to improve its industrial safety culture, improve customer relationships and improve operational efficiency, including through the use of digital tools. The company plans to achieve significant progress in the implementation of its key investment projects, and first of all, it concerns projects to modernize rail production in North America and Nizhny Tagil. EVRAZ will also make every effort to take advantage of the emerging opportunities in markets that are beginning to recover from the pandemic. "