Metinvest confirms 1H17 EBITDA in line with monthly results
11 October 2017
Ukraine’s largest steel maker and iron ore miner Metinvest
(METINV) reported its 1H17 financial results on Oct. 11, which are fully in
line with its monthly figures. The holding’s revenue rose 36% yoy to USD 3,913
mln. Its 1H17 EBITDA amounted to USD 839 mln (a 45% yoy increase) and
represents the sum of earlier published monthly results.
The holding’s 1H16 net profit dropped 20% yoy to USD
72 mln and its net cash flow from operations jumped 87% yoy to USD 305 mln.
Also, it confirmed its 1H17 CapEx amounted to USD 179 mln (a 38% increase yoy).
In 2Q17 alone, Metinvest’s revenue climbed 11% qoq to
USD 2,060 mln, EBITDA improved 9% qoq to 437 mln, and CapEx slid 26.2% qoq to
USD 76 mln.
Andriy Perederey: The
holding’s results improved yoy mainly due to higher selling prices in its
metallurgical segment (average selling prices jumped 45% yoy to USD 450/t in
1H17) and swelling iron ore prices (the average selling price of iron ore
surged 70% yoy to USD 80/t). The holding’s selling volumes fell 5.6% yoy to
5.83 mmt in its metallurgical segment and 25% yoy to 7.56 mmt in its iron ore
segment.
The selling volume drop stems from its loss of
control over its assets located in occupied Donbas. But the 1H17 results
support our expectation of its full-year 2017 EBITDA at USD 1.75 bln. We are
keeping our neutral view on METINV Eurobonds as we see a high refinancing risk
for the next twelve months.
