Azovstal, Yenakiieve Steel, MMK Illicha post negative EBITDA in 1Q12

Three Metinvest-related steel producers, Yenakiieve Steel (ENMZ UK), Azovstal (AZST UK), and MMK Illicha (MMKI UK) reported poor 1Q12 financial results yesterday. Yenakiieve Steel increased its revenue 12% yoy to USD 401 mln, while its net losses grew 45% yoy to USD 75 mln. While the company was able to slightly improve its operating efficiency, its EBITDA remained strongly negative at USD 43 mln (-3% yoy). Azovstal decreased its sales 23% yoy to USD 758 mln, while its LBITDA grew to USD 69 mln (vs. just USD 2 mln a year ago), and net losses expanded 3.3x yoy to USD 102 mln. MMK Illicha‘s revenue declined 17% yoy to USD 805 mln, while LBITDA rose 4.4x yoy to USD 101 mln, and net losses doubled yoy to USD 123 mln.

Mentinvest steel producers 1Q12 key financials, USD mln

 ———————
                    1Q11    1Q12
———————
Yenakiieve Steel
Sales           357.6   401.1
EBITDA       -44.3   -42.8
NI               -52.0   -75.3
———————
Azovstal
Sales          986.1   758.4
EBITDA       -2.0   -69.3
NI             -30.8  -102.1
———————
MMK Illicha
Sales          973.4   805.3
EBITDA      -23.1  -101.0
NI             -61.3  -122.6
———————
Source: Company data