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 Q2 and H1 2020.
Q2 2020 key highlights:
- MMK Group’s revenue decreased by 25.8% quarter-on-quarter (q-o-q) to USD 1,268 mln, which reflects a decline in sales volumes amid the scheduled reconstruction of Hot-Rolling Mill 2500, and the correction in steel prices due to negative market trends in Russia and globally.
- EBITDA fell 48.9% q-o-q to USD 226 mln, reflecting the difficult market environment in Q2 and the impact of one-off factors. EBITDA margin decreased by 8.0 p.p. to 17.8%.
- Net profit for Q2 2020 amounted to USD 58 mln, down 55.7% q-o-q.
- Free cash flow (FCF) totalled negative USD 18 mln. The FCF change was mainly driven by lower margins and the working capital build up due to higher export sales amid a deteriorating domestic market environment.
H1 2020 key highlights:
- MMK Group’s revenue declined by 22.3% year-on-year (y-o-y) to USD 2,978 mln, due to the slowdown in business activity amid the correction in global steel prices.
- EBITDA decreased by 28.7% y-o-y to USD 668 mln following negative market trends driven by the spread of the pandemic. EBITDA margin was down by 2.0 p.p. to 22.4%.
- Net profit declined by 62.0% y-o-y to USD 189 mln, mainly due to worsening market conditions and increase in foreign exchange loss due to the rouble devaluation.
- FCF amounted to USD 97 mln, down 70.2% y-o-y, due to the worsening market environment.
The full version of the press-release can be found here.