Evraz posts $2.97 billion revenue in Q1 2010

Tuesday, 18 May 2010 12:03:59 (GMT+2)

The Russian mining and steel producer Evraz Group has announced that in the first quarter of 2010 it has registered revenue of $2.97 billion, 23 percent more than in the same period last year. The results may differ from financial statements prepared in accordance with International Financial Reporting Standards, with the numbers not being audited or reviewed.

Evraz's adjusted EBITDA in Q1 2010 was of $424 million, with an adjusted EBITDA margin of 14.3 percent. The company's first quarter capital expenditures amounted to $160 million.
 
Accordingly, during the first three months of the current year, Evraz's total steel product sales increased by 12 percent compared to Q1 2009 and amounted to 3.87 million mt, including 1.26 million mt of semi-finished products, 1.2 million mt of construction products, 645,000 mt of flat rolled products, 455,000 mt of railway products, 189,000 mt of tubular products, and 5,000 mt of pig iron. The company's Q1 iron ore sales volumes including inter-segment shipments totaled 4.2 million mt, while its total coal sales including inter-segment shipments amounted to 2.5 million mt, including 900,000 mt of raw coking coal, 600,000 mt of steam coal, 900,000 mt of coking coal concentrate, and 100,000 mt of steam concentrate.

In the second quarter of 2010, Evraz expects its EBITDA to increase to $725-825 million.

"In April and May of 2010, demand from the Russian construction market continued to strengthen, while international markets demonstrated positive price and volume developments. Due to the two to three-month time lag between booking of our export sales (and therefore setting the price) and actual deliveries, average prices in the second quarter of 2010 reflect the international spot price increase in the first quarter," reads the company's statement.

A series of refinancing activities, including drawdown of a loan from Gazprombank which will be due in 2015, is expected to decrease Evraz's short-term debt by $1.0-1.5 billion by the end of Q2 2010. Evraz's total debt as of March 31, 2010 amounted to $7.953 billion, including $2.713 billion of short-term loans and current portion of long-term debt.

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