Metinvest reports strong 9M13 preliminary financials

Обзоры по компаниям и отраслям 23.12.2013 Ukraine’s leading steel holding Metinvest (METINV) reported USD 9,806 mln in 9M13 revenue, according to preliminary results published on Dec. 20. Net revenue was flat yoy as 8% growth in ore sales and a USD 1,112 mln resale of goods from related Zaporhizhstal in 9M13 was offset by a 14% drop in the sale of finished steel products, a 4% drop in semi-finished products and a 53% drop in coal product sales. The key markets that drove revenue in 9M13 were the Middle East and North Africa (+31% yoy), southeast Asia (+17% yoy) and Europe (+8% yoy), while the core lagging markets were domestic (-13% yoy) and the CIS (-18% yoy). The holding’s EBITDA improved 18% yoy to USD 1,809 mln and its bottom line was 8% yoy higher at USD 426 mln. As its CapEx decreased 36% yoy (to USD 426 mln), the holding was able to deleverage: its total debt decreased by USD 558 mln YTD to USD 3,720 mln, enabling Metinvest to decrease its total debt/LTM EBITDA ratio to 1.6x as of end-9M13 (from 1.8x as of end-1H13 and 2.2x as of end-2012). The 9M13 preliminary results imply Metinvest revenue rose 8% yoy in 3Q13 (to USD 3,291 mln), its EBITDA for the quarter increased 26% yoy (to USD 566 mln) while its bottom line fell 78% yoy to USD 20 mln.