EVRAZ plc (LSE: EVR) today releases its operational results for the first quarter of 2013 and the Interim Management Statement.
Q1 2013 OPERATIONAL HIGHLIGHTS and RECENT DEVELOPMENTS:
- · Both consolidated crude steel production and output of steel products (net of re-rolled volumes) increased by 11% due to lower downtime at steelmaking capacities in Q1 2013 compared to Q4 2012
- · Consolidated production of finished steel goods slightly increased (+2% vs. Q4 2012)
- · Production at EVRAZ ZSMK rail mill recommenced on 15 January 2013 following the successful completion of the modernisation project
- · EVRAZ NTMK completed the implementation of the PCI project
- · Consolidated output of iron ore products remained broadly flat at 5.2 million tonnes of saleable iron ore products
- · Raw coking coal production rose by 9%, with a 14% increase at Yuzhkuzbassugol and 3% at Raspadskaya
- · In February 2013, the Company commissioned Yerunakovskaya VIII mine which has a full production capacity of 2.5 million tonnes of coking coal per annum to be reached by the year-end
- · Average selling prices for most key steel product groups marginally increased or remained flat compared to Q4 2012
- · In January 2013, EVRAZ completed the acquisition of an indirect controlling interest in Raspadskaya for US$964 million, payable in equity and cash consideration, bringing effective interest to 82%
- · In March 2013, EVRAZ executed a non-binding term sheet for potential sale of EVRAZ Highveld
- · In April 2013, the Company acquired a 51% stake in Timir, a joint venture with Alrosa, created for the development of iron ore deposits in Yakutia, Russia for ca. US$160 million
- · In April 2013, Evraz Group S.A., a wholly owned subsidiary of EVRAZ, priced an issuance of US$1,000 million 7-year Eurobonds with a coupon of 6.50% per annum
- · In Q1 2013 preliminary capital expenditure totalled US$255 million
STEEL
| Product, ‘000 tonnes |
Q1 2013 |
Q4 2012 |
Q1 2013/ Q4 2012, change |
Q1 2012 |
Q1 2013/ Q1 2012, change |
|
| Coke (saleable) |
356 |
345 |
3.2% |
304 |
17.1% |
|
| Pig iron |
3,153 |
3,086 |
2.2% |
3,050 |
3.4% |
|
| Pig iron (saleable) |
46 |
145 |
(68.3)% |
22 |
109.1% |
|
| Crude steel |
4,068 |
3,663 |
11.1% |
4,327 |
(6.0)% |
|
| Steel products, gross |
4,032 |
3,683 |
9.5% |
4,150 |
(2.8)% |
|
| Steel products, net of re-rolled volumes |
3,619 |
3,266 |
10.8% |
3,717 |
(2.6)% |
|
| Semi-finished products |
937 |
637 |
47.1% |
733 |
27.8% |
|
| Finished products |
2,683 |
2,629 |
2.1% |
2,984 |
(10.1)% |
|
| Construction products |
1,236 |
1,293 |
(4.4)% |
1,319 |
(6.3)% |
|
| Railway products |
383 |
376 |
1.9% |
552 |
(30.6)% |
|
| Flat-rolled products |
647 |
557 |
16.2% |
705 |
(8.2)% |
|
| Tubular products |
231 |
245 |
(5.7)% |
206 |
12.1% |
|
| Other steel products |
186 |
158 |
17.7% |
202 |
(7.9)% |
Note. Numbers in this table and the tables below may not add to totals due to rounding.
In Q1 2013, EVRAZ’s overall production of crude steel increased by 11% compared to Q4 2012, mainly due to absence of overhauls and lengthy maintenance works at EVRAZ’s Russian and Ukrainian steel mills. The resumption of operations of the EVRAZ Vitkovice steelmaking shop in the Czech Republic also contributed to higher crude steel output in Q1 2013.
Consolidated production of finished steel goods was largely flat quarter-on-quarter, while total steel products (including semi-finished) increased by 11% primarily due to higher output of semi-finished products in Russia. As a result, the share of finished steel products as a percentage of total production of steel products totalled 74% in Q1 2013 compared to80% in Q4 2012.