EVRAZ Q4 2019 AND FULL YEAR 2019 TRADING UPDATE
EVRAZ Q4 2019 TRADING UPDATE
30 January 2020 — EVRAZ plc (LSE: EVR; “EVRAZ” or the “Group”) today released its trading update for the fourth quarter and full year of 2019.
Q4 2019 vs Q3 2019 HIGHLIGHTS
- In Q4 2019, EVRAZ’ consolidated crude steel output rose by 2.1% QoQ, mainly due to higher production volumes at EVRAZ ZSMK after the scheduled capital repairs during July-August ended.
- Steel product sales climbed by 6.6% QoQ, driven primarily by semi-finished products, which grew by 17.7%. This, in turn, was mainly a result of higher steel production at EVRAZ ZSMK and seasonally weaker market demand for finished construction products in Russia. In addition, sales of railway products in Russia grew by 17.8% following completion of capital repairs at EVRAZ ZSMK’s rail and beam shop in Q3 2019.
- Total raw coking coal production decreased by 5.3% QoQ due to lower production volumes amid a scheduled longwall move at the Raspadskaya mine in Q4 2019. Coking coal concentrate production dropped by 16.7% QoQ due to softer market demand.
- External sales volumes of coking coal products fell by 14.9% QoQ due to lower market demand.
- External sales of iron ore products surged by 68.5% QoQ following the completion of capital repairs of EVRAZ KGOK’s roasting machines that took place during August and September.
- Sales of vanadium final products were down by 2.0% QoQ due to lower FeV demand mainly from North American steel producers amid reduced utilisation rates.
FY2019 vs FY2018 HIGHLIGHTS
- In 2019, EVRAZ’ consolidated crude steel production climbed by 6.1% YoY, mainly due to higher production volumes of pig iron at EVRAZ ZSMK as the blast furnace no.3 underwent a lengthier and more complex process of capital repair in 2018 (category II) vs the blast furnace no.1 in 2019 (category III).
- Sales volumes of semi-finished products jumped by 22.8% YoY, primarily due to higher semi-finished product sales from Russia to the export markets amid greater production volumes and a sharp increase of slab sales in North America amid greater demand from customers.
- Production of raw coking coal grew by 8.1% YoY due to higher production volumes at the Osinnikovskaya, Erunakovskaya and Uskovskaya mines, driven by improvements in capital repairs and equipment maintenance.
- External iron ore product sales fell by 42.5% YoY, primarily as a result of higher consumption of pellets in 2019 by EVRAZ NTMK after the launch of blast furnace no. 7 in Q2 2018 and by EVRAZ ZSMK amid higher pig iron production.
|Product, kt||Q4 2019||Q3 2019||Q4 2019/ Q3 2019, change||12m 2019||12m 2018||12m 2019/ 12m 2018, change|
|Total crude steel production1||3,449||3,379||2.1%||13,814||13,019||6.1%|
|Total raw coking coal mined||5,981||6,319||-5.3%||26,140||24,188||8.1%|
|Total coking coal concentrate production||3,537||4,244||-16.7%||15,923||16,188||-1.6%|
|Iron ore products production||3,277||3,319||-1.3%||13,765||13,515||1.8%|
|Total sales of steel products1||3,609||3,386||6.6%||13,502||12,235||10.4%|
|Total sales of third-party steel products||200||225||-11.1%||801||900||-11.0%|
|Sales of coking coal products||2,514||2,953||-14.9%||11,053||11,048||0.0%|
|Sales of iron ore products||273||162||68.5%||1,134||1,972||-42.5%|
|Sales of vanadium in slag2||1,923||1,693||13.6%||6,451||6,701||-3.7%|
|Sales of vanadium final products3||3,514||3,585||-2.0%||12,883||12,352||4.3%|
Note. Numbers in this table and the tables below may not add up to totals due to rounding.
1 The Q4 2019 production and sales volumes of EVRAZ North America are preliminary.
2 The 12m 2018 data have been adjusted.
3 In tonnes of pure vanadium