Metinvest doubles EBITDA in March

Metinvest (METINV) doubled its EBITDA in March to USD 91 mln (+117% m/m), two-thirds of which (USD 60 mln) were generated in its mining segment, according to the monthly report the company published on May 27. In February, both its metallurgical and mining divisions contributed almost equally to USD 42 mln in EBITDA. 

With CapEx of USD 29 mln, the holding’s free cash flow reached USD 62 mln compared to USD 8 mln in February. Metinvest had USD 12 mln in cash outflow from financing activity, most probably due to the release of trade finance loans. Cash on its balance sheet grew 37% m/m to USD 196 mln. 

Roman Topolyuk: Metinvest’s financial result was strong in March, though the steep increase in steel market prices was scarcely reflected in its monthly EBITDA – the effect will drive the EBITDA of its metallurgical division in April-May. Rising cash on its balance sheet means that the company will be able able to distribute soon to its creditors more than a third of accrued interest. We reiterate our positive view on Metinvest’s notes.