News of company
Metalloinvest in the 1st quarter of 2020 significantly reduced profit
The company's revenue decreased by 17.2% compared to the same quarter last year to $ 1,536 million. EBITDA decreased by 26.8%, amounting to $ 534 million, EBITDA margin fell from 39.3% to 34.8%.
The company's net profit in the 1st quarter of 2020 amounted to $ 83 million against $ 539 million a year earlier, which is explained mainly by the negative exchange rate difference in financial activities.
Total debt decreased by 7.2% compared to December 31, 2019 to $ 3,768 million. The ratio of net debt to EBITDA LTM (EBITDA for the last 12 months) decreased to 1.46x compared to 1.49x as of December 31, 2019.
Capital expenses decreased by 4.5% to $ 84 million.
Alexey Voronov, Deputy General Director for Finance and Economics of Metalloinvest Management Company, commented on the results of the first quarter:
“In the first quarter of 2020, the Company increased the volume of production and shipment of the main types of products compared to the same period in 2019. EBITDA in the reporting period amounted to $ 534 million, showing strong growth of about 34% compared to the level of the fourth quarter of last year. A similar comparison to the first quarter of 2019 has the opposite dynamics, which is mainly due to a decrease in world prices for pellets and steel products year to year. At the same time, EBITDA margin remains at a high level - 34.8%. The company continues to maintain a comfortable level of debt load - LTM net debt / EBITDA was 1.46x at the end of the reporting period, which, together with a low share of short-term borrowings (about 7%), provides the necessary financial stability. ”