Information  X 
Enter a valid email address

Evraz Plc (EVR)

  Print      Mail a friend       Annual reports

Wednesday 31 July, 2019

Evraz Plc

EVRAZ Q2 2019 TRADING UPDATE - CORRECTION

RNS Number : 4113H
Evraz Plc
31 July 2019
 

This announcement replaces the RNS announcement number 2704H released at 07:00 UK time today,
31 July 2019.

The figures in the table "Average selling prices" in the "Coal segment" section on page 9 of the pdf version should read as follows:

 

Average selling prices

 

US$/t (ex works)

 

Q2

2019

Q1

2019

H1

2019

H1

2018

Raw coking coal

62

57

59

70

Coking coal concentrate

104

117

110

127

 

 

EVRAZ Q2 2019 TRADING UPDATE

31 July 2019 - EVRAZ plc (LSE: EVR; "EVRAZ" or the "Group") today released its trading update for the second quarter of 2019.

 

 

Q2 2019 vs Q1 2019 HIGHLIGHTS

 

·      In Q2 2019, EVRAZ' consolidated crude steel output remained flat QoQ.

·      Total steel product sales rose by 7.7% QoQ, driven by higher demand. Sales of finished products climbed by 10.1% due to higher sales of construction products in Russia and railway products in North America.

·      Raw coking coal production grew by 2.2% QoQ. Raw coking coal concentrate output climbed by 21% QoQ to 4.5mt, mainly due to greater processing volumes and lower ash content.

·      External sales volumes of coking coal products surged by 10.3% QoQ due to increased coking coal concentrate sales after the longwall repositioning at Yuzhkuzbassugol's Alardinskaya mine in Q1 2019 and greater shipments to Russia's Far East. This was partly offset by lower raw coking coal sales amid lower demand at the markets in Eastern Europe.

·      External sales of iron ore products dropped by 49.4% QoQ as volumes were redistributed towards exports amid reduced demand on the domestic market.

·      Sales of final vanadium products rose by 29.7% QoQ, as lower prices and FeV stocks at end users have stimulated spot demand, particularly in the EU, Asia and North America.



 

Product, kt

Q2

2019

Q1

2019

Q2 2019/ Q1 2019, change

 

H1    2019

 

H1    2018

 

H1 2019/ H1 2018, change

Total crude steel production

3,507

3,488

0.5%

6,995

6,814

2.7%

Russia

3,006

2,986

0.7%

5,992

5,726

4.6%

Ukraine

0

0

n/a

0

154

-100%

North America

501

502

-0.2%

1,003

934

7.4%

Total raw coking coal mined

6,996

6,844

2.2%

13,840

11,391

21.5%

Total coking coal concentrate
production

4,458

3,684

21.0%

8,142

8,061

1.0%

Iron ore products production

3,533

3,636

-2.8%

7,169

6,855

4.6%

Total sales of steel products1

3,377

3,135

7.7%

6,512

6,220

4.7%

   Semi-finished products

1,395

1,335

4.5%

2,730

2,516

8.5%

   Finished products2

1,982

1,800

10.1%

3,782

3,704

2.1%

Total sales of third-party steel
products

221

180

22.8%

401

417

-3.8%

Sales of coking coal products

2,929

2,656

10.3%

5,585

5,599

-0.3%

Sales of iron ore products3

235

464

-49.4%

699

1,089

-35.8%

Sales of Vanadium in slag3

1,660

1,176

41.2%

2,836

2,814

0.8%

Sales of vanadium final products4

3,266

2,518

29.7%

5,784

6,456

-10.4%








Note. Numbers in this table and the tables below may not add up to totals due to rounding.

 

1 The Q2 2019 production and sales volumes of EVRAZ North America are preliminary.

2 The Q1 2019 data have been adjusted.

3 The H1 2018 data have been adjusted.

4 in tonnes of pure vanadium

 

 



 

STEEL SEGMENT

 

Total production volumes

Product, kt

Q2 2019

Q1 2019

Q2 2019/ Q1 2019, change

H1 2019

H1 2018

H1 2019/ H1 2018, change

2,745

2,712

1.2%

5,457

5,252

3.9%

1,530

1,471

4.0%

3,001

2,912

3.1%

1,215

1,241

-2.1%

2,456

2,186

12.4%

0

0

n/a

0

153

-100%

3,006

2,986

0.7%

5,992

5,880

1.9%

1,942

1,895

2.5%

3,837

3,752

2.3%

1,064

1,091

-2.5%

2,155

1,974

9.2%

0

0

n/a

0

154

-100%

2,759

2,622

5.2%

5,381

5,225

3.0%

 EVRAZ ZSMK

1,737

1,686

3.0%

3,423

3,388

1.0%

EVRAZ NTMK

844

794

6.3%

1,638

1,430

14.5%

EVRAZ DMZ

0

0

n/a

0

132

-100%

EVRAZ Palini e Bertoli

101

97

4.1%

198

186

6.5%

EVRAZ Caspian Steel

77

45

71.1%

122

89

36.0%

3,533

3,636

-2.8%

7,169

6,855

4.6%

1,573

1,643

-4.3%

3,216

3,277

-1.9%

928

898

3.3%

1,826

1,735

5.2%

1,032

1,095

-5.8%

2,127

1,843

15.4%

489

454

7.7%

943

1,041

-9.3%

 From own raw coal1

341

256

33.2%

597

601

-0.7%

From third-party raw coal

148

198

-25.3%

346

440

-21.2%

Gross vanadium slag production2

4,533

4,446

2.0%

8,979

8,414

6.7%








Note. Numbers in this table and the tables below may not add up to totals due to rounding.

1 from Coal segment

2 in tonnes of pure vanadium

 

In Q2 2019, EVRAZ` pig iron and crude steel output remained mostly flat QoQ at the Russian mills.

Output of iron ore products fell by 2.8% QoQ to 3.5mt, mainly due to unscheduled downtime of burning machine no. 1 at EVRAZ KGOK and a planned maintenance outage of the Tashtagol mine at Evrazruda.



 

Total sales volumes

Product, kt

Q2

2019

Q1

2019

Q2 2019/

Q1 2019, change

H1 2019

H1 2018

H1 2019/ H1 2018, change

Coke

113

65

73.8%

178

184

-3.3%

Steel products, external sales

2,746

2,583

6.3%

5,329

5,185

2.8%

Semi-finished products

1,293

1,279

1.1%

2,572

2,505

2.7%

   Slabs

572

482

18.7%

1,054

962

9.6%

   Billets

545

646

-15.6%

1,191

1,301

-8.5%

   Other steel products1

176

151

16.6%

327

242

35.1%

Finished products

1,453

1,304

11.4%

2,757

2,680

2.9%

   Construction products

808

729

10.8%

1,537

1,541

-0.3%

   Railway products

367

343

7.0%

710

669

6.1%

   Flat products

98

91

7.7%

189

188

0.5%

   Other steel products

180

141

28.6%

320

282

13.5%

Steel products, inter-segment sales

115

186

-38.2%

301

303

-0.7%

Third-party steel products, external sales

221

180

22.8%

401

417

-3.8%

Iron ore products, external sales

235

464

-49.4%

699

1,089

-35.8%

Pellets

235

464

    -49.4%

  699

1,089

     -35.8%

Sales of vanadium in slag2

1,660

1,176

41.2%

2,836

2,814

0.8%

Sales of vanadium final products3

3,266

2,518

29.7%

5,784

6,456

-10.4%

Note. Numbers in this table and the tables below may not add to totals due to rounding.

1 includes tonnes of pig iron

2 The H1 2018 data have been adjusted.

3 in tonnes of pure vanadium

 

In Q2 2019, external sales of steel products rose by 6.3% QoQ, primarily due to higher demand. Sales of semi-finished products were mostly flat QoQ.

 

Sales of finished products grew by 11.4% QoQ, mainly driven by higher sales of construction products, which rose by 10.8% QoQ following an uptick in demand due to the construction season. 

 

Sales of final vanadium products climbed by 29.7% QoQ, as lower prices and FeV stocks at end users have stimulated spot demand, particularly in the EU, Asia and North America.

 

Cash cost, US$/t

Q2

2019

Q1

2019

Q2 2019/ Q1 2019, change

 H1

2019

 H1

2018

H1 2019/ H1 2018, change

Slab cash cost vertically integrated

238

223

6.7%

230

248

-7.2%

Iron ore products (Fe 62%)

38

37

2.7%

38

37

2.7%

 

Average selling prices

US$/t (ex works)

Q2

2019

Q1

2019

H1

2019

H1

2018

Coke

240

223

233

255

Steel products

517

481

499

551

Semi-finished products1

392

381

387

462

Construction products

601

522

563

613

Railway products

763

743

753

702

Other steel products

598

593

596

635

Pellets

81

75

77

63

Metal Bulletin Ferro-Vanadium basis 78% min, free DDP,
consumer plant, 1st grade Western Europe
2

39.36

73.33

56.35

65.53

Ryan's Notes N.A. FeV 80% min, US ex-warehouse, duty paid2

47.81

87.93

67.87

69.51

1 includes prices for pig iron

2 US$/kgV

 

In Q3 2019, pig iron and crude steel production volumes are expected to remain flat.

 

 



 

STEEL, NORTH AMERICA SEGMENT

 

Production and sales volumes1

Product, kt

Q2

2019

Q1 2019

Q2 2019/

Q1 2019, change

H1 2019

H1 2018

H1 2019/ H1 2018, change

Crude steel

501

502

-0.2%

1,003

934

7.4%

EVRAZ US mills

255

235

8.5%

490

446

9.8%

EVRAZ Canadian mills

246

267

-7.9%

513

488

5.1%

Total steel products production, net of re-rolled volume

615

559

10.0%

1,174

1,110

5.8%

EVRAZ US mills

397

351

13.1%

748

683

9.5%

EVRAZ Canadian mills

218

208

4.8%

426

427

-0.2%

Sales of steel products

631

553

14.1%

1,184

1,034

14.5%

Semi-finished products

102

56

82.1%

158

11

1336.4%

Construction products

70

67

4.5%

137

142

-3.5%

Railway products

120

101

18.8%

221

208

6.3%

Flat-rolled products

147

140

5.0%

287

302

-5.0%

Tubular products

192

189

1.6%

381

371

2.7%

1 The Q2 2019 production and sales volumes data are preliminary.

 

In Q2 2019, total output of steel products surged by 10.0% QoQ, with EVRAZ Pueblo's output up 13.1% QoQ amid greater downstream demand following the rail mill restart after unplanned downtime in Q1 2019. 

 

Sales of semi-finished products jumped by 82.1% QoQ following higher demand from customers.

 

Sales of construction products rose by 4.5% QoQ due to higher demand and favourable weather.

 

Railway product sales climbed by 18.8% QoQ, as production volumes recovered after the rail mill outage in Q1 2019.

 

Sales of flat-rolled products went up by 5.0% QoQ as a result of a planned maintenance outage and a railcar supply shortages in Q1 2019.

 

Tubular product sales edged up by 1.6% QoQ due to the restart of coating operations at EVRAZ Regina.

 

 



 

Average selling prices

US$/t (ex works)

Q2

2019

Q1

2019

H1

2019

H1

2018

Construction products

769

848

808

758

Flat-rolled products

949

1,048

997

892

Tubular products

1,360

1,374

1,367

1,224

 

Prices for construction products went down in Q2 2019, primarily driven by falling scrap prices and sluggish market demand. Prices for flat-rolled products were lower during the period as service centres temporarily curtailed purchases amid rapidly falling scrap prices and market uncertainty, which in turn was driven by soft demand. Prices for tubular products decreased slightly during Q2 2019, reflecting softening oil country tubular goods (OCTG) markets in addition to a seasonal decline in demand.

 

In Q3 2019, crude steel output is expected to remain at the average level seen in Q1-Q2 2019. Tubular sales volumes should increase compared with Q2 2019, as OCTG is expected to show healthier volumes. Meanwhile, volumes of line pipe and large-diameter pipe are expected to benefit from delayed coating and delivery recognition in Q2 2019. Sales of flat-rolled products are forecast to marginally improve over the Q2 2019 volumes, driven by customer production schedules and an expected uptick in purchasing activity from service centres.

 

 

 

 

 

 

 



 

COAL SEGMENT

 

Production volumes

Product, kt

Q2

2019

Q1

2019

Q2 2019/ Q1 2019, Change

H1 2019

H1 2018

H1 2019/ H1 2018, change

Raw coking coal (mined)

6,996

6,844

2.2%

13,840

11,391

21.5%

Yuzhkuzbassugol

3,466

2,606

33.0%

6,072

5,475

10.9%

Raspadskaya

3,231

3,916

-17.5%

7,147

5,438

31.4%

Mezhegeyugol

299

322

-7.1%

621

478

29.9%

Coking coal concentrate (production)

3,969

3,229

22.9%

7,198

7,020

2.5%

Produced at Yuzhkuzbassugol coal
washing plants

1,837

1,433

28.2%

3,270

3,495

-6.4%

Produced at the Raspadskaya coal
washing plant

2,132

1,796

18.7%

3,928

3,525

11.4%

 

In Q2 2019, overall raw coking coal output rose by 2.2% QoQ, primarily due to higher production at Yuzhkuzbassugol's mines following a longwall move at the Alardinskaya mine in Q1 2019. This was partly offset by lower production volumes at the Raspadskaya mine due to a longwall move in Q2 2019.

 

Output of coking coal concentrate climbed by 22.9%, primarily due to greater processing volume and reduced ash content.



 

Sales volumes

Product, kt

Q2

2019

Q1

2019

Q2 2019/ Q1 2019, change

H1

2019

H1

2018

H1 2019/ H1 2018, change

External sales

2,929

2,656

10.3%

5,585

5,599

-0.3%

Raw coking coal

447*

497

-10.1%

943*

807

16.9%

Coking coal concentrate

2,482

2,160

14.9%

4,642

4,792

-3.1%

Intersegment sales

1,650

1,519

8.6%

3,169

2,932

8.1%

    Raw coking coal

556

396

40.4%

952

910

4.6%

    Coking coal concentrate

1,094

1,123

-2.6%

2,217

2,022

9.6%








* The data include sales volumes of 1kt of coal recognised as steam-grade coal based on its quality characteristics.

 

In Q2 2019, external sales volumes of coking coal products surged by 10.3% due to increased coking coal concentrate sales after the longwall repositioning at Yuzhkuzbassugol's Alardinskaya mine in Q1 2019 and greater shipments to Russia's Far East, which was partly offset by lower raw coking coal sales amid lower demand at the markets in Eastern Europe.

 

Cash cost, US$/t

Q2

2019

Q1

2019

Q2 2019/ Q1 2019, change

 H1

2019

 H1

2018

H1 2019/ H1 2018, change

Coking coal concentrate1

33

35

-5.7%

34

47

-27.7%

1 The Q1 2019 data have been adjusted.

 

Average selling prices

 

US$/t (ex works)

 

Q2

2019

Q1

2019

H1

2019

H1

2018

Raw coking coal

62

57

59

70

Coking coal concentrate

104

117

110

127

 

In Q2 2019, coking coal selling prices moved in line with global benchmarks.

 

In Q3 2019, raw coal production is expected to decline QoQ due to the longwall move at the Uskovskaya mine. Output will also be impacted by reduced production at Razrez Raspadsky due to the transfer of its equipment to the open-pit mining operations at the Raspadskaya-Koksovaya mine.

 

 

Notes:

Semi-finished products include slabs, billets, pipe blanks and other semi-finished products.

Construction products include beams, channels, angles, rebars, wire rods, wire and other construction products.

Railway products include rails, wheels, tyres and other railway products.

Flat-rolled products include commodity plate, specialty plate and other flat products.

Tubular products include large-diameter line pipes, ERW pipes and casings, seamless pipes and other tubular products.

Other steel products include rounds, grinding balls, mine uprights, strips, etc. They also include railway products for Ukraine.

 

 

###

 

 

 

For further information:

 

Media Relations:

London: +44 207 832 8998                               Moscow: +7 495 937 6871

[email protected]

 

Investor Relations:

London: +44 207 832 8990                              Moscow: +7 495 232 1370

[email protected]

 

 

EVRAZ is a vertically integrated steel, mining and vanadium business with operations in the Russian Federation, Kazakhstan, US, Canada, Czech Republic and Italy. EVRAZ is among the top steel producers in the world based on crude steel production of 13mt in 2018. A significant portion of the company's internal consumption of iron ore and coking coal is covered by its mining operations. The company's consolidated revenues for the year ended 31 December 2018 were US$12,836m and consolidated EBITDA amounted to US$3,777m.


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
END
 
 
MSCRBMTTMBBJBJL

a d v e r t i s e m e n t