EVRAZ plc (LSE: EVR) (“EVRAZ” or the “Company”) today releases its operational results for the fourth quarter and full year of 2015.
Q4 2015 vs Q3 2015 HIGHLIGHTS:
• Consolidated crude steel output increased by 2% to 3.6 million tonnes, following completion of maintenance works at EVRAZ Pueblo (USA) and DMZ (Ukraine) steel mills.
• Production of steel products, net of re-rolled volumes, improved by 5%, mostly due to better performance in Ukraine.
• Higher share of semi-finished steel products in consolidated volumes of 45% in Q4 2015 vs. 32% in Q3 2015 is due to seasonal slowdown in demand for finished, construction and railway, products in Russia.
• Production of railway products rose 11% as a result of a return to a normalised level at EVRAZ Pueblo rail mill following maintenance works.
• Production of tubular products increased 3% as a result of higher production at the Portland large diameter pipe mill in the USA.
• Consolidated raw coking coal output increased by 12% on completion of longwall moves at Yuzhkuzbassugol mines. Production of coking coal concentrate declined by 6% driven by softer demand from Russian steelmakers.
FY 2015 vs FY 2014 HIGHLIGHTS:
• In 2015, the Company produced 14.3 million tonnes of crude steel, a 8% decrease over 2014, partially due to deconsolidation of EVRAZ Highveld Steel and Vanadium (“Highveld”) in South Africa.
• Without Highveld, the decrease in crude steel production would be 5%, with the worsening market conditions in the key markets as the main driver of the decline in crude steel and steel products output.
• Production of steel products, net of re-rolled volumes, was 6% down (-4% without Highveld).
• The share of finished steel products in consolidated volumes has been decreasing over the year from 69% in 2014 to 63% in 2015 as a result of softer demand and increasing competition in domestic markets, e.g. from other local steel producers in Russia and from imports in North America.
• Consolidated raw coking coal output and production of coking coal concentrate decreased by 3% and 2% respectively impacted by both planned (schedule of longwall moves at Yuzhkuzbassugol) and unplanned (e.g. suspension of mining at MUK-96 mine at the Raspadskaya coal company due to market conditions) declines.
• Record high production level at the Raspadskaya mine following successful implementation of mine restoration after the 2010 accident partly offset the lower production of coking coal and coking coal concentrate by the Company.
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