30 January 2017
EBITDA of the largest Ukrainian steelmaker and iron ore producer made USD 112M, which is the lowest monthly level since Q1 2016. Operating cash flow has been the lowest for latest months as well.
According to the statement of the company in November’16 its revenues made USD 584M (slightly higher vs. October, due to prices increase despite certain decline in realization in natural terms – by 4% in Metallurgical segment, by 8% - in Mining). For 11m 2016 revenues – USD 5.7bln, EBITDA – close to USD 1.2bln:
In last reporting month Metallurgical division accounted for 80% of total Group sales (USD 471M) with EBITDA margin of 10%. Margin decreased from 15.5% in October (EBITDA decline in absolute terms – from USD 73M to USD 48M), main reason – higher growth rate of raw materials prices (mainly coal) vs. steel products. Partially it was offset by results of Mining division (which provides 100% of Metallurgical division necessity in iron ore and 50% necessity in coaking coal) – its EBITDA grew from USD 64M to USD 79M.
Coaking coal prices started to increase in August'16 and by November grew by 3 times. Along with it since November and till current moment coal prices already declined by about 40%.
On negative side we also note the fact that mainly because of Inventory and Receivables growth (by USD 96M and USD 159M correspondingly during July-November’16) operating cash flow of the company lags behind EBITDA:
USD M
July
August
September
October
November
TOTAL
EBITDA
147
133
128
127
112
647
OCF before changes in WC*
110
104
104
93
86
497
NOCF
41
169
47
33
12
302
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