EVRAZ Q1 production report and interim management statement

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EVRAZ Q1 production report and interim management statement

EVRAZ plc (LSE: EVR) today releases its operational results for the first quarter of 2014 and the Interim Management Statement.


• Consolidated crude steel production decreased by 8% in Q1 2014 vs. Q4 2013 due to scheduled maintenance works at Russian steel mills
• Consequently output of gross steel products declined by 4% due to lower availability of crude steel
• Share of finished steel products increased to 74% in Q1 2014 vs. 69% in Q4 2013 due to redistribution of available crude steel volumes towards production of higher margin finished products
• Output of iron ore products in Russia decreased by 2%, impacted by the disposal of EVRAZ VGOK in October 2013 and two mines of Evrazruda in December 2013
• Consolidated raw coking coal output decreased by 6% due to repositioning of longwalls at several underground mines and shutdown of the Abashevskaya mine. This was partially offset by the launch of a new longwall at the Raspadskaya underground mine
• Average prices for most of EVRAZ’s steel products in Russia decreased in the period, although since March 2014 prices have started to increase as a result of the improving demand and the start of the construction season
• Average prices for the majority of steel products in North America rose, thanks to better product mix and high demand as well as lower imports
• Average prices for Russian-produced iron ore products and coking coal concentrate were flat, despite negative trends in the global steelmaking raw materials market
• In Q1 2014, the preliminary* capital expenditure amounted to $158 million, compared with $185 million in Q4 2013 and $262 million in Q1 2013. The company intends to keep its annual capital expenditures below $900 million in 2014 and beyond
• Since 31 December 2013 up to the date of this publication the Group’s financial position has been affected by the disposal of EVRAZ Vitkovice Steel in April 2014 for a total consideration of $287 million and by depreciation of the Russian local currency
• In Q2 2014, EVRAZ expects to grow the output of crude steel and steel products at the Russian mills due to lower scheduled downtime for maintenance and repairs
• Hot tests are expected to be completed at the Kostanay rolling mill by the end of April and production to commence in Q2 2014 

*Estimate as EVRAZ IFRS books are not yet closed 


For further information:

Media Relations:
Vsevolod Sementsov
VP, Corporate Communications
London: +44 207 832 8998 Moscow: +7 495 937 6871

Investor Relations:
Sergey Belyakov
Director, Investor Relations
London: +44 207 832 8990 Moscow: +7 495 232 1370