Ukraine-based Metinvest posted a net loss of $240mn compared to a net profit of $408mn in the same period prior year on the back of lower revenue and weak global pricing for steel products, stated the company on Sep 8.
The company’s consolidated revenue declined by 15pc to $4,968mn in H1 from $5,818mn in the prior year period. This was largely due to a fall in steel prices in line with global benchmarks along with COVID-19-related impacts on business and steel demand. Decline in resale volumes also exacerbated the situation.
Losses at associates and JVs amounted to $67mn compared to a profit of $90mn in H1 2019 driven by a decrease in contribution from the Pokrovske coal business and Zaporizhastal JV, among others. The losses were partly compensated by an increase in contribution from the Southern GOK JV with $16mn.
Metinvest’s overall EBITDA dropped by 20pc to $715mn from $890mn in H1 of 2019 driven by decline in the mining segment’s EBITDA of $245mn.
The revenue from mining segment in H1 remained almost unchanged at $1,069mn, while lower external sales of pellets ($287mn) and other products ($24mn) were offset by higher sales of iron ore concentrate ($203mn) and coking coal concentrate ($5mn).
The metallurgical segment, however, witnessed an increase in EBITDA by 80pc, compared to the prior year backed by China’s robust recovery in the second quarter of 2020, thereby expanding of ore shipments to that market by over 3mn mt. The company also resumed steel sales to this country and sold almost 500,000mt of semi-finished and finished steel products during the reporting period.
In H1, the metallurgical segment’s revenue declined by 18pc to $3,899mn or 8.4mn mt from $4,746mn or 8.6mn mt driven by lower sales of flat products, coke, square billets, slabs, long products, tubular products and other products and services. This was partly offset by increased sales of pig iron. In H1, pig iron sales increased by 8pc to $380mn driven by a 21pc to 1.17mn mt rise volumes backed by higher resales and destocking in the period.
| Metallurgical Segment (Sales & Volumes) | |||
| Semi-Finished | H12020 | H12019 (mt) | Pc Change |
| Vol US$ | Vol US$ | Vol US$ | |
| Pig Iron | 1.17mn 380 | 971 353 | 21% -13% |
| Slabs | 975 390 | 956 453 | 2% -16% |
| Square billets | 720 286 | 778 357 | -7% -12% |
| Finished Products | |||
| Flat Products | 3.8mn 1,945 | 4.1 2,457 | -8% -13% |
| Long Products | 725 379 | 720 432 | 1% -13% |
| Tubular Products | 74 40 | 78 47 | -5% -10% |
| Coke | 1.01mn 243 | 966 316 | 5% -28% |