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Evraz Announces 2008 Interim Results

Date of publication: 29.08.2008

August 29, 2008– Evraz Group S.A. (LSE: EVR) today announces its unaudited interim results for the six months ended June 30, 2008.

1H 2008 Highlights:

Financials:

  • Revenue grew 78.2% to US$10,726 million due to strong pricing, acquisitions and improved sales mix.
  • Consolidated adjusted EBITDA was up 80.5% to US$3,700 million.
  • Net profit attributable to equity holders of Evraz Group S.A. grew 82.1% to US$2,043 million.
  • Outstanding operating cash flow of US$2,347 million, a 42.2% increase over the previous period, due to higher profit and continuing focus on working capital management.
  • Earnings per GDR increased by 75.4% to US$5.56.

Steel:

  • Crude steel production grew by 11.9% year-on-year to 9.5 million tonnes.
  • Total steel sales volumes increased by 10.9% to 9.4 million tonnes.

Vanadium:

  • Revenues of vanadium segment increased by 212.2% to US$740 million.
  • Vanadium products sales increased 57.2% year-on-year to 15,800 tonnes in vanadium equivalent.

Mining:

  • Iron ore production grew by 21.8% to 11.3 million tonnes with iron ore self-coverage of 93%.
  • Own coal production provides for over 100% of the Company’s steel making requirements.
  • Recently approved Yuzhkuzbassugol development programme until 2018 is another step in Yuzhkuzbassugol’s turnaround.

Corporate developments and acquisitions:

  • Acquisition of Claymont Steel for US$420 million completed in January
  • Acquisition of IPSCO Canada for US$2,413 million completed in June
  • Successful bond placements totaling US$2.0 billion completed in April and May

Six months to June 30
(US$ million)
20082007Change
Revenue10,7266,01878.2%
Adjusted EBITDA3,7002,05080.5%
Profit from operations3,1251,74579.1%
Net Profit2,0431,12282.1%
Earning per GDR, (US$)5.563.1775.4%

Please download the full version of the press release here.


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