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08 Aug 2019 | 07:31

Evraz earnings fall as lower vanadium, coal and steel product prices bite

Evraz reported a fall in half-yearly earnings as lower vanadium, coal and steel product prices weighed on performance. Consolidated earnings (EBITDA) totalled US$1,482m in the first half of the year, down 22.2% from US$1,906m in a year earlier, driving the EBITDA margin down to 24.1% from 30.0%, the company said.

Steel prices, based on hot-rolled coil (HRC) FOB China contracts, dropped by 12% to US$523 a tonne in the half from US$595 a tonne a year earlier amid high inventory levels and production. Hard coking coal prices (FOB Australia) edged down by 3% to US$202 a tonne, compared with US$208 a tonne in the half as coal supply from Australia was lower than expected at the beginning of the year amid harsh weather and logistical constraints. The average vanadium price dropped by 14% to US$56.3 a kilogram for the half, compared with US$65.5/kgV in a year earlier. An interim dividend for 2019 of US$0.35 per share had been declared, Looking ahead to the second half of 2019, EVRAZ said it expected the markets to be volatile, but added that its financial performance would be supported by 'the high level of vertical integration, the strength of the Russian steel market and our continuing efforts in efficiency improvements.'

Story provided by StockMarketWire.com
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