Metinvest reports strong 9M13 preliminary financials

Ukraine’s leading steel holding Metinvest (METINV) reported USD 9,806 mln in 9M13 revenue, according to preliminary results published on Dec. 20. Net revenue was flat yoy as 8% growth in ore sales and a USD 1,112 mln resale of goods from related Zaporhizhstal in 9M13 was offset by a 14% drop in the sale of finished steel products, a 4% drop in semi-finished products and a 53% drop in coal product sales. The key markets that drove revenue in 9M13 were the Middle East and North Africa (+31% yoy), southeast Asia (+17% yoy) and Europe (+8% yoy), while the core lagging markets were domestic (-13% yoy) and the CIS (-18% yoy). The holding’s EBITDA improved 18% yoy to USD 1,809 mln and its bottom line was 8% yoy higher at USD 426 mln. As its CapEx decreased 36% yoy (to USD 426 mln), the holding was able to deleverage: its total debt decreased by USD 558 mln YTD to USD 3,720 mln, enabling Metinvest to decrease its total debt/LTM EBITDA ratio to 1.6x as of end-9M13 (from 1.8x as of end-1H13 and 2.2x as of end-2012).

The 9M13 preliminary results imply Metinvest revenue rose 8% yoy in 3Q13 (to USD 3,291 mln), its EBITDA for the quarter increased 26% yoy (to USD 566 mln) while its bottom line fell 78% yoy to USD 20 mln.