EVRAZ announces unaudited interim financial results for H1 2016
EVRAZ plc (“EVRAZ” or “the Group”; LSE: EVR) today announces its unaudited interim results for the six months ended 30 June 2016 (“the Period”).
H1 2016 highlights:
- Health and safety: lost-time injury frequency ratio (LTIFR) of 2.48x up 28% year-on-year due to increased reporting transparency of minor injuries.
- EBITDA of US$577 million, down 38.1% year-on-year primarily reflecting the lagged effect of weak steel pricing.
- EBITDA margin reached 16.3% in H1 2016 vs 18.8% in H1 2015
- Coal segment EBITDA increased 25.6% in H1 2016 with EBITDA margin reaching 39.7% due to the positive impact of rouble devaluation and effects of cost-cutting initiatives.
- Net cash flows from operating activities contracted from US$804 million in H1 2015 to US$533 million in H1 2016. Free cash flow for the period was US$102 million.
- Total debt in H1 2016 decreased by US$540 million to US$6,184 million, while net debt decreased by US$33 million to US$5,316 million vs US$5,349 million as at 31 December 2015.
- Cost savings of US$138 million due to ongoing productivity improvements and cost-cutting initiatives.
- Secure position as one of the lowest-cost producers of steel and raw materials in Russia:
- Cash cost of slabs decreased to US$162/t from US$193/t in FY 2015
- Cash costs of washed coking coal decreased to US$28/t from US$31/t in FY 2015
- Cash costs of iron ore products (58% Fe content) decreased to US$24/t from US$30 in FY 2015