Russian steel maker EVRAZ announced that consolidated EBITDA totaled USD 2.486 billion in H1 of 2022 up 19% YoY from USD 2,082 billion in H1 of 2021. The EBITDA margin declined to 30.7% from 33.7% in H1 of 2021. The increase in EBITDA was primarily attributable to higher coal product sales prices as well as better performance of North American assets. EVRAZ’s Chief Executive Officer Mr Aleksey Ivanov said “Recent geopolitical tensions have given rise to significant corporate governance and operating challenges for EVRAZ. On top of that, strong rouble, declining demand for our products and increased competition on EVRAZ’s traditional markets present additional headwinds. In H1 2022, steel demand went down amid growing worries over the health of the global economy and persistent supply chain challenges. There was bearish sentiment in China due to extended COVID-19 lockdowns, low margins and rising steel inventory. This led to a pullback in steel prices from recent highs across all key markets and especially in China, Europe and India.”Consolidated revenues - USD 8,097 million, up 31% YoYProfit from operations - USD 383 million, down 78.1% YoYConsolidated EBITDA - USD 2,486 million, up 19.4% YoYNet profit - USD 6 million, down 99.5% YoYCAPEX - USD 513 million, up 19.3% YoYThe cash cost of slabs increased to USD 358 per tonne from USD 283 per tonne in H1 of 2021The cash cost of washed coking coal increased to USD 62 per tonne from USD 36 per tonne in H1 of 2021The cash cost of iron ore products increased to USD 56 per tonne from USD 40 per tonne in H1 of 2021EVRAZ said “On the other hand, geopolitical tensions are affecting the pricing of some Russian steel products selling abroad. Export price discounts might be in the range of USD40-80. In upcoming months, challenges will persist, so Evraz continues the process of adapting trade flows and supply channels.”
Russian steel maker EVRAZ announced that consolidated EBITDA totaled USD 2.486 billion in H1 of 2022 up 19% YoY from USD 2,082 billion in H1 of 2021. The EBITDA margin declined to 30.7% from 33.7% in H1 of 2021. The increase in EBITDA was primarily attributable to higher coal product sales prices as well as better performance of North American assets. EVRAZ’s Chief Executive Officer Mr Aleksey Ivanov said “Recent geopolitical tensions have given rise to significant corporate governance and operating challenges for EVRAZ. On top of that, strong rouble, declining demand for our products and increased competition on EVRAZ’s traditional markets present additional headwinds. In H1 2022, steel demand went down amid growing worries over the health of the global economy and persistent supply chain challenges. There was bearish sentiment in China due to extended COVID-19 lockdowns, low margins and rising steel inventory. This led to a pullback in steel prices from recent highs across all key markets and especially in China, Europe and India.”Consolidated revenues - USD 8,097 million, up 31% YoYProfit from operations - USD 383 million, down 78.1% YoYConsolidated EBITDA - USD 2,486 million, up 19.4% YoYNet profit - USD 6 million, down 99.5% YoYCAPEX - USD 513 million, up 19.3% YoYThe cash cost of slabs increased to USD 358 per tonne from USD 283 per tonne in H1 of 2021The cash cost of washed coking coal increased to USD 62 per tonne from USD 36 per tonne in H1 of 2021The cash cost of iron ore products increased to USD 56 per tonne from USD 40 per tonne in H1 of 2021EVRAZ said “On the other hand, geopolitical tensions are affecting the pricing of some Russian steel products selling abroad. Export price discounts might be in the range of USD40-80. In upcoming months, challenges will persist, so Evraz continues the process of adapting trade flows and supply channels.”
