Metalloinvest Finance Designated Activity Company (IRSH)
METALLOINVEST ANNOUNCES 2020 IFRS FINANCIAL RESULTS Moscow, Russia - 24 February 2021 - Metalloinvest ("the Company"), a leading global iron ore and HBI producer, and one of the regional producers of high-quality steel, today publishes its audited IFRS financial results for the full year ended 31 December 2020. Management comments Nazim Efendiev, CEO of Management Company Metalloinvest, commented: "In 2020, the Metalloinvest's strategy aimed at improving product quality and ensuring sustainable sales has demonstrated its resilience. Despite external challenges, the Company has reported a good set of financial results. The main development of the past year was the COVID-19 pandemic, and Metalloinvest took several measures to ensure not only the safety of our employees but also of the residents of the regions we are present in. Extensive programmes to support the regional healthcare system were promptly deployed and employee salaries were increased twice during the year. Continuing our focus on sustainable development, we presented our Qualitative Change Strategy to 2032 in February 2021. Metalloinvest's mission is to be the evolutionary basis of modern metallurgy for future generations. We see our Company as a world-leading producer of high quality iron ore, metallised and steel products, which are at the heart of the steel industry's transition towards green technologies and a reduced carbon footprint." Alexey Voronov, Deputy CEO - Chief Financial Officer of Management Company Metalloinvest, added: "In 2020, the Company's EBITDA amounted to USD 2.5 bn, slightly behind last year. The Company's efforts were largely aimed at optimising costs, which ensured an increase in EBITDA margin to 38.5% from 36.1% a year earlier. It is worth noting the contribution of the fourth quarter to full year results - EBITDA, which amounted to USD 838 mn, became the Company's highest quarterly indicator over the past 8 years. We expect favourable market conditions to continue in early 2021. Significant efforts have been made to reduce leverage, improve the parameters of the Company's debt portfolio and expand sources of liquidity. Thus, in 2020, almost USD 260 mn was spent on debt repayment, several refinancing transactions were completed, including through successful public borrowings in the local market at record low rates, and new credit lines were opened. As a result, the Total Debt of the Company decreased by 9.5% to USD 3.7 bn, and repayments in 2021-2022 amounted to USD 0.5 bn, which is fully guaranteed by the available amount of liquidity. The Net Debt / EBITDA at the end of 2020 was 1.3x, which is a comfortable level for the implementation of the investment programme in full."
FINANCIAL HIGHLIGHTS
PRODUCTION HIGHLIGHTS
KEY CORPORATE HIGHLIGHTS Operational developments and capital expenditure
Financing
Full press release and financial statements are available at: https://www.metalloinvest.com/investors/financial-results/
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Metalloinvest is a leading global iron ore and merchant HBI producer and supplier, and one of the regional producers of high-quality steel. The Company has the world's second-largest measured iron ore reserve base and is one of the lowest-cost iron ore producers. Metalloinvest is wholly owned by Holding Company USM LLC. Alisher Usmanov is the major beneficiary of Holding Company USM LLC (49%).
[1] Hereinafter comparison with 2019 unless indicated otherwise [2] Hereinafter EBITDA stands for EBITDA adjusted according to IFRS requirements [3] According to the IFRS 16 standard, Total Debt includes operational lease in the amount of USD 94 mn [4] The indicator is for information only and does not contain adjustments as per the loan documentation [5] Iron ore refers to iron ore concentrate and sintering ore [6] Continuous Casting Machine |
ISIN: | XS0918297382 |
Category Code: | FR |
TIDM: | IRSH |
Sequence No.: | 94230 |
EQS News ID: | 1170755 |
End of Announcement | EQS News Service |
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