EVRAZ Announces Interim Results for 1H 2010

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EVRAZ Announces Interim Results for 1H 2010

2 September 2010 – EVRAZ Group S.A. (LSE: EVR) today announces its unaudited interim results for the six months ended 30 June 2010.

1H 2010 Highlights:


  • Consolidated revenue US$6,379 million (+38% vs. 1H 2009)
  • Consolidated adjusted EBITDA US$1,154 million (+147%)
  • Net loss US$270 million. Without the effects of non-cash and one-off transactions there would have been a net profit of US$284 million .
  • Operating cash flow US$744 million
  • Total debt US$7,873 million (vs. US$7,923 million as of 31 December 2009)

Steel segment:

  • Crude steel production 8.3 million tonnes (+22%)
  • Total external steel sales volumes 7.7 million tonnes (+13%)
  • Steel segment revenue US$5,796 million (+35%)

Mining segment:

  • Iron ore production 8.7 million tonnes (+6%)
  • Coking coal (raw coal and concentrate) production 6.8 million tonnes (-21%)
  • Steam coal production 3.1 million tonnes (+21%)
  • Mining segment revenue US$1,120 million (+72%)

Vanadium segment:

  • Primary vanadium production 10,537 tonnes (+22%)
  • External vanadium product sales volumes 10,506 tonnes (+41%)
  • Vanadium segment revenue US$290 million (+110%)

Corporate developments:

  • Successful tender for the licence to develop the Mezhegey coking coal deposit in March 2010
  • Launch of major rail mill modernisation projects
  • Commencement of implementation of pulverised coal injection (PCI) technology at two Russian steel mills
  • Sale of ZAO Koksovaya (owner of the licence for Tomusinskaya 5-6 coal deposit) to Raspadskaya for US$40 million

Financial management:

  • RUB15 billion (approx. US$500 million) raised via a Rouble bond issue in March 2010
  • US$1,007 million short-term loan to VEB repaid in May 2010 using the proceeds from a 5-year US$950 million Gazprombank loan
  • US$404 million 4-year loan from Nordea Bank was utilised in July to replace short-term debt
  • AGM held on 17 May 2010 approved the decision not to pay dividends in respect of 2009


  • CAPEX for 1H 2010 amounted to US$397 million compared with US$203 million for 1H 2009
  • CAPEX for FY2010 is expected to total approximately US$950 million

Please download the full version of the press release here.