11

EVRAZ Announces Audited Financial Results for 1H 2011

Date of publication: 12.10.2011

12 October 2011 – EVRAZ Group S.A. (LSE: EVR) today announces its audited interim results for the six months ended 30 June 2011.

1H 2011 Highlights:

Financials:

  • Consolidated revenue US$8,380 million (+31% vs. 1H 2010)
  • Consolidated adjusted EBITDA US$1,629 million (+41%)
  • Net profit of US$263 million (+49%). Without the effects of one-off transactions net profit would have been US$494 million*
  • Operating cash flow US$1,594 million (+114%)
  • Net debt US$6,042 million (-15% vs. 31 December 2010)
  • Short-term debt US$604 million (-15% vs. 31 December 2010)
  • Interim dividend of US$89 million and special dividend of US$402 million announced

Steel segment:

  • Crude steel production 8.6 million tonnes (+4%)
  • Total external steel sales volumes 7.9 million tonnes (+3%)
  • Steel segment revenue US$7,492 million (+29%)

Mining segment:

  • Iron ore production 10.4 million tonnes (+8%)
  • Raw coking coal production 3.6 million tonnes (-2%)
  • Raw steam coal production 1.5 million tonnes (-37%)
  • Mining segment revenue US$2,040 million (+82%)

Vanadium segment:

  • Primary vanadium production 10,158 tonnes (-3%)
  • External vanadium product sales volumes 11,088 tonnes (+6%)
  • Vanadium segment revenue US$320 million (+10%)

Corporate developments:

  • Launch of Yerunakovskaya-VIII coking coal mine development
  • Capacity and product mix expansion in the North American tubular sector
  • Improvement of Broad-Based Black Economic Empowerment (B-BBEE) contributor rating in South Africa from Level 8 to Level 5

Financial management:

  • Issuance of US$850 million eurobonds at a coupon rate of 6.75% due 2018
  • Early redemption of US$622 million of 2013 eurobonds
  • Issuance of RUB20 billion (approx. US$710 million) 5-year Rouble bonds
  • Conversion of US$650 million convertible bonds originally due in 2014
  • Rating upgrades by Standard & Poor’s and Fitch to “B+” and “BB-“ respectively

CAPEX:

  • CAPEX for 1H 2011 of US$462 million compared with US$397 million for 1H 2010
  • CAPEX guidance for FY2011 is maintained at approximately US$1.2 billion

Dividends:

  •  Dividend policy amended to pay not less than 25% of the adjusted consolidated net income
  •  EVRAZ declares for the first time since 2008 an interim dividend of US$0.60 per share/US$0.20 per GDR (a total of US$89 million) and a special dividend of US$2.70 per share/US$0.90 per GDR (a total of US$402 million)
  • Dividends record date – 28 October 2011; payment – no later than 30 days after the record date

Please download the full version of the press release here.
Please download the audited consolidated financial statements here.

* - One-off losses of US$231 million in 1H 2011 were caused by the conversion and early repurchase of debts


Back to the list