EVRAZ publishes 2018 annual report and reports full year 2018 results
EVRAZ plc (“EVRAZ” or “the Company”) (LSE: EVR) has today:
- posted its Annual Report for the year ended 31 December 2018 (“2018 Annual Report”) on its website: http://www.evraz.com/investors/annual_reports/;
- submitted to the UK National Storage Mechanism a copy of its 2018 Annual Report in accordance with LR 9.6.1 R.
The 2018 Annual Report will shortly be available for inspection on the National Storage Mechanism http://www.morningstar.co.uk/uk/NSM
The 2018 Annual Report and the Notice of the Company’s Annual General Meeting, which will be held on 18 June 2019 in London, will be posted to shareholders in
The Appendix to this announcement contains additional information which has been extracted from the 2018 Annual Report for the purposes of compliance with DTR 6.3.5 only and should be read in conjunction with this announcement. Together these constitute the material required by DTR 6.3.5 and DTR 4.2.3 to be communicated to the media in unedited full text through a Regulatory Information Service. This announcement should be read in conjunction with and is not a substitute for reading the full 2018 Annual Report. Page and note references in the text below refer to page numbers and notes in the 2018 Annual Report.
EVRAZ ANNOUNCES ITS AUDITED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2018
The financial information contained in this document does not constitute statutory accounts as defined by section 435 of the Companies Act 2006. Financial information for 2017 has been extracted from the audited statutory accounts for the year ended 31 December 2017 which were prepared in accordance with IFRS as adopted by the European Union and have been delivered to the Registrar of Companies. The auditor’s report on those financial statements was unqualified with no reference to matters to which the auditor drew attention by way of emphasis and no statement under s498(2) or s498(3) of the Companies Act 2006. The financial information for the year ended 31 December 2018 will be delivered to the Registrar of Companies following the Company’s annual general meeting convened for 18 June 2019. The auditor has reported on the statutory accounts for the year ended 31 December 2018. The auditor’s report was unqualified.
FY 2018 HIGHLIGHTS
- Robust free cash flow of US$1,940 million (FY2017: US$1,322 million)
- Continued reduction in net debt: US$3.6 billion (FY2017: US$4.0 billion)
- Total EBITDA effect from cost-cutting and customer focus initiatives was US$340 million in 2018
- Consolidated EBITDA of US$3,777 million, up 43.9% from US$2,624 million in FY2017, driving the EBITDA margin from 24.2% to 29.4%, due to strong market conditions and numerous improvement initiatives
- Net profit surged to US$2,470 million vs. US$759 million in FY2017
- cash cost of slabs decreased to US$242/t from US$247/t in FY2017 amid rouble depreciation and higher sales volumes
- cash costs of washed coking coal increased to US$47/t (FY2017: US$42/t) due to more complex geological conditions, rise in auxiliary materials prices and higher involvement of contractors
- cash costs of iron ore products increased slightly to US$37/t (FY2017: US$36/t) amid lower sales volumes of Evrazruda
- An interim dividend 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.
EVRAZ Chief Executive Officer, Alexander Frolov, commented
“In 2018, EVRAZ delivered robust growth due to favourable market conditions and ongoing efficiency and cost initiatives. The Group generated EBITDA of US$3,777 million during the reporting period, its highest level since 2008, which made it possible to pay dividends of US$1.6 billion.
EVRAZ remained focused on implementing its efficiency improvement programme in the amount of 3% of the cost base, the effect from which totalled US$340 million in 2018.
EVRAZ believes that its low net debt and superior cost base will help to withstand any market downturns, thereby helping the business to develop sustainably”.