Metinvest EBITDA rose 24% m/m in June

EBITDA at Ukraine’s largest steelmaker Metinvest
(METINV) rose 23.8% m/m to USD 931 mln in June, according to its monthly
results published on Sept. 1. The holding’s revenue added 9.8% m/m to USD 1,722
mln.

 

EBITDA excluding joint ventures (JVs) jumped 33.1% m/m
to USD 805 mln in June.

 

Metinvest’s operating cash flow before working capital
changes increased 21.4% m/m to USD 733 mln in June, whereas cash flow from
operations after working capital changes (but before profit tax and interest)
soared 61.4% m/m to USD 741 mln.

 

Cash outflow due to changes in accounts receivable was
USD 139 mln in June, a 52.7% m/m jump. Cash inflow due to changes in accounts
payable skyrocketed to USD 242 mln in June from USD 1 mln in May.

 

The holding’s cash outflow from investment activities
was USD 37 mln in June, compared to an inflow of USD 43 mln in May. Metinvest’s
outflow from financing activities amounted to USD 464 mln and its end-of-month
cash balance grew 16.5% m/m to USD 1,443 mln. Its gross debt decreased USD 466
mln m/m to USD 2,459 mln, while its net debt plunged USD 670 mln m/m to USD
1,016 mln.

 

Metinvest metallurgical segment’s EBITDA (including
JVs) rose 9.3% m/m to USD 401 mln in June, while its mining segment’s EBITDA
soared 41.3% m/m to USD 650 mln.

 

Excluding JVs, Metinvest metallurgical segment’s
EBITDA gained 16.2% m/m to USD 373 mln in June, while its mining segment’s
EBITDA swelled 54.0% m/m to USD 553 mln.

 

The ratio of Metinvest’s net debt to its LTM EBITDA
(excluding JVs) dropped to 0.23x at the end of June, down from 0.47x a month
ago.

 

Metinvest’s iron and steel product prices continued
rising in June, gaining 10% for pig iron, 18% for slabs, 9% for billets, 15%
for flat products and 10% for long products. Its iron ore concentrate price
jumped 11% m/m in June, while the pellet price gained 7% m/m.

 

Dmytro Khoroshun: Metinvest’s
monthly EBITDA will likely amount to at least USD 500-700 mln in 3Q21 because
of strong steel and iron ore prices.

 

Metinvest’s monthly EBITDA should drop from 3Q21 to
4Q21 because iron ore prices in China have plunged since mid-July and Ukraine’s
FOB steel prices had peaked in May-June and have
fallen about 20% since.