Metinvest EBITDA slides 12% m/m in November
30 January 2017
Ukraine’s largest steelmaker Metinvest (METINV) reported EBITDA of USD 122 mln in November, a drop of 12% m/m, according to monthly results published on Jan. 27. The monthly results imply that Metinvest generated EBITDA of USD 1,226 mln (+51% yoy) in 11M16. Its net operating cash flow was USD 12 mln in November, after the company recorded USD 42 mln in working capital investments during the month.
The holding’s CapEx almost doubled m/m to USD 43 mln. Its cash inflow from financial activities surged to USD 27 mln. Its cash balance decreased 1.2% m/m to USD 244 mln, exceeding the USD 180 mln threshold that enabled it to pay out excess cash interest for the month. Recall, Metinvest paid 151% of accrued interest on its Eurobonds for November.
Andriy Perederey: The November result is weaker than we expected, but is in line with our annual estimate of Metinvest’s EBITDA at USD 1.35 bln. In September-November, Metinvest replenished its working capital by USD 146 mln, but such a strong increase didn’t prevent the holding from paying excessively high interest and principal payments to debt holders. Based on the standstill agreement, such payments depend on Metinvest’s cash balance.
Recall also that Metinvest is on the road to complete debt restructuring and announced the latest restructuring terms in late December. The bondholder meeting to approve the restructuring was scheduled for Feb. 6. We are keeping our positive view on Metinvest Eurobonds.
