EVRAZ announces unaudited interim financial results for H1 2018
EVRAZ plc («EVRAZ» or «the Group»; LSE: EVR) today announces its unaudited interim results for the six months ended 30 June 2018 («the Period»).
H1 2018 HIGHLIGHTS
- Strong free cash flow of US$661 million (H1 2017: US$549 million).
- Consolidated EBITDA of US$1,906 million, up 65.5% from US$1,152 million in H1 2017, driving the EBITDA margin from 22.6% to 30.0% due to higher vanadium, coal and steel products prices, accompanied by the effects of cost-cutting initiatives.
- Continued debt reduction: total debt reduced by c.US$646m to c.US$4,786m, net debt reduced to US$3.9 billion (FY2017: US$4.0 billion).
- Cost saving of US$117 million due to ongoing productivity improvements and cost-cutting initiatives.
- Net profit of US$1,145 million vs. US$86 million in H1 2017.
- Cash-cost of steel and raw materials in Russia slightly increased:
- cash cost of slabs increased to US$248/t from US$247/t in FY2017;
- cash cost of washed coking coal increased to US$47/t from US$42/t in FY2017;
- cash cost of iron ore products increased to US$37/t from US$34/t in FY2017.
- Solid dividends of c.US$617 million were paid out to shareholders during H1 2018
- A second interim dividend for 2018 of US$577.34 million (US$0.40 per share) has been declared, reflecting the Board’s confidence in the Group’s financial position and outlook.