Metinvest EBITDA slides 6% m/m in April

EBITDA at Ukraine’s largest steelmaker Metinvest (METINV)
declined 6.0% m/m in April to USD 173 mln, according to its monthly results
published on June 27. The holding’s revenue lost 7.5% m/m to USD 954 mln.
Metinvest’s operating cash flow before working capital changes dropped 27.9%
m/m to USD 111 mln, whereas cash flow from operations (before profit tax and
interest) jumped 58.7% m/m to USD 146 mln in April.

The holding’s cash outflow from investment activities
plunged 40.6% m/m to USD 60 mln, while inflow from financing activities
amounted to USD 86 mln and its end-of-month cash balance rose 51.8% m/m to USD
331 mln. The holding’s gross debt rose USD 72 mln m/m to USD 2,754 mln.

Metinvest’s metallurgical segment EBITDA rose 15.2%
m/m to USD 53 mln in April, while its mining segment EBITDA inched up 2.0% m/m
to USD 151 mln.

For 4M19, Metinvest’s revenue dropped 6.6% yoy to USD
3,817 mln, while its EBITDA plunged 30.9% to USD 608 mln.

Steel prices continued rebounding m/m, rising 11% for
slabs, 5% for billets and long products, and 4% for flat products. However, the
pig iron price slid 1% m/m, the iron ore concentrate price declined 4% m/m, and
the pellet price dropped 2% m/m.

Dmytro Khoroshun: We continue to expect Metinvest’s metallurgical segment EBITDA to
remain in the depressed USD 40-60 mln per month range in the next few months
because of the ongoing weakness in steel prices. However, Metinvest’s mining
segment EBITDA should continue to outperform, remaining above USD 130-140 mln
per month because of the strong iron ore prices.