Metinvest EBITDA falls 44% yoy in 2012
25 February 2013
Metinvest (METINV) reported an 11% revenue decline yoy to USD 12.6 bln in 2012. EBITDA fell 44% yoy to USD 1.99 bln, while net income plunged 4x yoy to USD 454 mln. Total indebtedness came in at USD 4.3 bln as of end 2012. The financial results imply a 2.16x total debt to EBITDA ratio.
Roman Topolyuk: The company’s financials were expectedly impacted by declines in both sales and selling prices. Though Metinvest’s 2012 EBITDA was 3% higher than our estimate, the total debt to EBITDA ratio is worse than our expectation of 2x (compared to its bonds covenant of 3x). Cash balance being higher 39% qoq and total debt being up 7% qoq indicates that Metinvest has drawn a solid part of available debt facilities, but still has yet to utilize the cash.
