PJSC Magnitogorsk Iron & Steel Works (“MMK”, or the “Group”) (MICEX-RTS: MAGN; LSE: MMK), one of the world’s largest steel producers, is pleased to announce its financial results for Q3 and 9M 2020.
Q3 2020 key highlights:
- MMK Group’s revenue increased by 23.4% quarter-on-quarter (q-o-q) to USD 1,565 mln, which reflects a growth in sales volumes thanks to a recovery in business activity and a rise in steel prices due to positive market trends in Russia and globally.
- EBITDA for Q3 2020 amounted to USD 350 mln, up 54.9% q-o-q, reflecting the improving market environment in Q3 and a significant growth in the share of higher-margin domestic sales. EBITDA margin increased by 4.6 p.p. to 22.4%.
- Despite a rouble devaluation in Q3, net profit was up by 75.9% q-o-q to USD 102 mln.
- Free cash flow (FCF) significantly increased, totalling USD 335 mln in Q3. FCF growth was driven by higher sales and margins, and the management team’s effective efforts to reduce working capital amid a favourable domestic market environment.
9M 2020 key highlights:
- MMK Group’s revenue declined by 22.3% year-on-year (y-o-y) to USD 4,543 mln due to the challenging market situation and the reconstruction of Hot-Rolling Mill 2500.
- EBITDA decreased by 30.4% y-o-y to USD 1,018 mln following the overall slowdown in business activity and correction in global steel prices driven by the spread of the pandemic. EBITDA margin was down by 2.6 p.p. to 22.4%.
- Net profit declined by 62.1% y-o-y to USD 291 mln, mainly due to worsening market conditions and the growing foreign exchange losses driven by rouble devaluation.
- FCF amounted to USD 432 mln, down 30.0% y-o-y, due to the worsening market environment.
The full version of the press-release can be found here.