Metinvest steel output increases 7% in 2016
4 January 2017
Attributable steel production at Ukraine’s largest steel producer Metinvest (METINV) increased 3.0% m/m to 831 kt in December, according to Concorde Capital’s analysis of separate news reports of Interfax-Ukraine. This includes Azovstal (AZST UK), Ilyich Steel (MMKI UK), Yenakiyeve Steel (ENMZ UK) and a 49.9% portion of Zaporizhstal’s result (accounted for as a JV).
In 2016, Metinvest`s attributable steel production was 10.34 mmt (+7.0% yoy).
Andriy Perederiy: Metinvest’s 2016 attributable steel production was 1.5% lower than our projections of 10.5 mmt, which we attribute to some logistics problems.
Based on Metinvest’s operating performance, we estimate its 2016 EBITDIA has more than doubled yoy to about USD 1.4 bln (from USD 0.51 bln in 2015). Improved financials, as well as an anticipated finalization of debt restructuring (by February), allows us to maintain a bullish view on METINV notes.
