Russian mining and steel producing company Evraz Group has announced its financial results for the first half of 2020.
In the first half, Evraz registered a consolidated sales revenue of $4.98 billion, falling by 18.8 percent compared with $6.14 million in the first half of 2019, amid challenging market conditions driven by the coronavirus. In the same period, the group registered a net profit of $513 million, increasing by 49.1 percent compared to the same period of the previous year.
The consolidated EBITDA of Evraz for the given period was $1.07 billion, down by 27.6 percent year on year, due to lower vanadium, coal and steel product prices. EBITDA margin fell to 21.5 percent in the first half this year, from 24.1 percent in the corresponding period of 2019.
In the given period, Evraz’s capital expenditure spent on maintenance and development projects increased to $337 million, up by 9.1 percent year on year.
According to Evraz, the restrictive measures imposed by the governments of various countries have had a significant impact on the level of consumption of steel products around the world. Prices have reflected this situation, dropping sharply in comparison with the first half of 2019.
As for the second half this year, the company said that it aims to sustain production at full capacity and maximize sales volumes in Russia. Evraz will focus on additional efficiency improvements and maintain a balanced and selective approach to its investment projects.