Severstal Reports Strong Results for Q2 & H1 of 2021
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Severstal Reports Strong Results for Q2 & H1 of 2021

Russian steel giant Severstal has announced results or April-June 2021 quarter & H1 of 2021. Severstal Management CEO Mr Alexander

Russian steel giant Severstal has announced results or April-June 2021 quarter & H1 of 2021. Severstal Management CEO Mr Alexander Shevelev said “In terms of macro factors, Q2 results 2021 proved to be exceptionally strong. The on going recovery in industrial production has supported steel and raw material prices in all key regions. This allowed for strong financial results in the reporting quarter. Revenue increased by 33% QoQ to USD 2.9 billion driven by higher average realized prices and higher sales volumes, as well as improvements in the product mix, with the share of high value-added products growing by 3pp and amounted to 49%. EBITDA increased by 42% to USD 1.6 billion due to higher revenues and sales prices.”

April-June 2021 Quarter

Revenue – USD 2,946 million, up 33% YoY

EBITDA – USD 1,647 million, up 42% YoY

Net profit – USD 1,139 million, up 58% YoY

Production Pig iron - 2.627 million tonnes, down 2% YoY

Production Steel - 2.776 million tonnes, down 6% YoY

Sales Steel products – 2.678 million tonnes, up 2% YoY

Sales High added value -1.308 million tonnes, up 7% YoY

Sales Iron ore - 1.310 million tonnes, up 28% YoY

Sales Coal - 0.282 million tonnes, down 18 YoY

H1 of 2021

Revenue - USD 5,165 million, up 56.8% YoY

EBITDA – USD 2,809 million, up 166% YoY

Net profit – USD 1,860, up 4x YoY

Production Pig iron – 5.301 million tonnes, up 12% YoY

Production Steel 5.737 million tonnes, up 1% YoY

Sales Steel products - 5.308 million tonnes, up 4% YoY

Sales with high added value – 2.530 million tonnes, up 12% YoY

Sales Iron ore - 2,334 million tonnes, down 26% YoY

Sales Coal – 0.627 million tonnes, down 17% YoY

Mr Shevelev said “Steel demand was high in Q2 of 2021 thanks to industrial recovery, low stock levels and optimistic expectations for the progress of vaccination programs. The supply exceeded demand, which led to an increase in delivery times to the EU and the USA. The seasonal increase in consumption supported Asian markets in the spring of 2021, but demand growth slowed in June. In this regard, supplies from Asia to the Middle East and Europe increased, which caused a weakening of export prices in the Black Sea region. Demand in Turkey also fell, which put additional pressure on prices. At the same time, market conditions in Europe and the United States remain under pressure from import barriers and insufficient domestic supply. The Chinese government has begun to tackle price increases with a policy of curbing steel exports and tighter regulation of futures trading. The Russian Government is introducing a temporary 15% export duty on steel, which comes into force from August 1, 2021 to December 31, 2021.”

Mr Shevelev added “The COVID-19 pandemic continues to spread around the world, and Russia is no exception. The number of new cases has increased significantly in recent weeks. The health of our employees is our number one priority, which is why we have strengthened all preventive measures. An important area of our work to reduce the risk of infection has become an information campaign urging our employees and contractors to get vaccinated. Already today, more than 50% of our employees have collective immunity, and we plan that by the end of the summer this share will reach 80%.”

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