Metinvest EBITDA jumped 33% m/m in February

EBITDA at Ukraine’s largest steelmaker Metinvest (METINV)
rose 33.1% m/m to USD 503 mln in February, according to its monthly results
published on May 31. The holding’s revenue increased 17.9% m/m to USD 1,216
mln.

 

EBITDA excluding joint ventures (JVs) surged 39.9% m/m
to USD 417 mln in February.

 

Metinvest’s operating cash flow before working capital
changes jumped 37.0% m/m to USD 407 mln in February, whereas cash flow from
operations after working capital changes (but before profit tax and interest)
slid 4.9% m/m to USD 388 mln in February.

 

Cash outflow due to changes in accounts receivable
soared 5x m/m to USD 115 mln in February. Cash inflow due to changes in
accounts payable decreased 32.4% m/m to USD 148 mln in February.

 

The holding’s cash outflow from investment activities
skyrocketed 3.7x m/m to USD 201 mln. Metinvest’s outflow from financing
activities amounted to USD 90 mln and its end-of-month cash balance inched up
5.5% m/m to USD 1,180 mln. Its gross debt added USD 83 mln m/m to USD 3,033
mln, while its net debt inched up USD 22 mln m/m to USD 1,853 mln.

 

Metinvest metallurgical segment’s EBITDA (including
JVs) soared 50.3% m/m to USD 257 mln in February, while its mining segment’s
EBITDA jumped 35.9% m/m to USD 318 mln.

 

Excluding JVs, Metinvest metallurgical segment’s
EBITDA surged 49.4% m/m to USD 236 mln in February, while its mining segment’s
EBITDA skyrocketed 51.5% m/m to USD 253 mln.

 

The ratio of Metinvest’s net debt to its last 12 month
(LTM) EBITDA (excluding JVs) dropped to 0.79x at the end of February, down from
0.90x a month ago.

 

Metinvest’s iron and steel product prices skyrocketed
in February, gaining 10% for pig iron, 21% for slabs, 31% for billets, 13% for
flat products and 8% for long products. Its iron ore concentrate price soared
25% m/m in February, while the pellet price jumped 11% m/m.

 

Dmytro Khoroshun: Metinvest possibly paid up to USD 150-200 mln in dividends in
February, as suggested by a USD 90 mln cash outflow from financing activities
despite a USD 83 mln increase in gross debt. We think that in 2021 Metinvest
might pay at least up to USD 0.5 bln in dividends, which will be justified
given the very high steel and iron ore prices.