12 October 2011 - EVRAZ Group S.A. (LSE: EVR) today announces its audited interim results for the six months ended 30 June 2011.
1H 2011 Highlights:
Financials:
- Consolidated revenue US$8,380 million (+31% vs. 1H 2010)
- Consolidated adjusted EBITDA US$1,629 million (+41%)
- Net profit of US$263 million (+49%). Without the effects of one-off transactions net profit would have been US$494 million*
- Operating cash flow US$1,594 million (+114%)
- Net debt US$6,042 million (-15% vs. 31 December 2010)
- Short-term debt US$604 million (-15% vs. 31 December 2010)
- Interim dividend of US$89 million and special dividend of US$402 million announced
Steel segment:
- Crude steel production 8.6 million tonnes (+4%)
- Total external steel sales volumes 7.9 million tonnes (+3%)
- Steel segment revenue US$7,492 million (+29%)
Mining segment:
- Iron ore production 10.4 million tonnes (+8%)
- Raw coking coal production 3.6 million tonnes (-2%)
- Raw steam coal production 1.5 million tonnes (-37%)
- Mining segment revenue US$2,040 million (+82%)
Vanadium segment:
- Primary vanadium production 10,158 tonnes (-3%)
- External vanadium product sales volumes 11,088 tonnes (+6%)
- Vanadium segment revenue US$320 million (+10%)
Corporate developments:
- Launch of Yerunakovskaya-VIII coking coal mine development
- Capacity and product mix expansion in the North American tubular sector
- Improvement of Broad-Based Black Economic Empowerment (B-BBEE) contributor rating in South Africa from Level 8 to Level 5
Financial management:
- Issuance of US$850 million eurobonds at a coupon rate of 6.75% due 2018
- Early redemption of US$622 million of 2013 eurobonds
- Issuance of RUB20 billion (approx. US$710 million) 5-year Rouble bonds
- Conversion of US$650 million convertible bonds originally due in 2014
- Rating upgrades by Standard & Poor's and Fitch to "B+" and "BB-" respectively
CAPEX:
- CAPEX for 1H 2011 of US$462 million compared with US$397 million for 1H 2010
- CAPEX guidance for FY2011 is maintained at approximately US$1.2 billion
Dividends:
- Dividend policy amended to pay not less than 25% of the adjusted consolidated net income
- EVRAZ declares for the first time since 2008 an interim dividend of US$0.60 per share/US$0.20 per GDR (a total of US$89 million) and a special dividend of US$2.70 per share/US$0.90 per GDR (a total of US$402 million)
- Dividends record date - 28 October 2011; payment - no later than 30 days after the record date
* One-off losses of US$231 million in 1H 2011 were caused by the conversion and early repurchase of debts
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For further information:
Media contact:
Oleg Kuzmin
VP, Corporate Communications
+7 495 937 6871
media@evraz.com
Investor contact:
Alexander Boreyko
Director, Investor Relations
+7 495 232 1370
ir@evraz.com
EVRAZ GROUP S.A. (EVRAZ) is a vertically-integrated steel, mining and vanadium business with operations in the Russian Federation, Ukraine, USA, Canada, Czech Republic, Italy and South Africa. In 2010, the Company produced 16.3 million tonnes of crude steel and sold 15.5 million tonnes of steel rolled products. EVRAZ's internal consumption of iron ore and coking coal is covered by its mining operations. EVRAZ's consolidated revenues for the year ended 31 December.
