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 Q4 and 12M 2020.

Q4 2020 key highlights: 

• EBITDA for Q4 2020 grew to USD 474 mln, up 35.4% q-o-q, driven by higher margins resulting from stronger sales and steel prices trending upwards in key sales markets. EBITDA margin increased by 3.2 p.p. to 25.6%.

• FCF for the quarter amounted to USD 125 mln, down 62.9% q-o-q, due to higher CAPEX and the seasonal build-up of raw materials amid growing purchase prices.

• EBITDA decreased by 17.0% y-o-y to USD 1,492 mln due to the impact of the pandemic on business activity and global steel prices. EBITDA margin was down by 0.5 p.p. to 23.3%.

• FCF amounted to USD 557 mln, down 36.9% y-o-y, reflecting the worsening global macroeconomic environment.

12M 2020 key highlights: 

• MMK Group’s revenue declined by 15.5% year-on-year (y-o-y) to USD 6,395 mln due to worsening market conditions and the scheduled reconstruction of Hot-Rolling Mill 2500.

• Net profit declined by 29.4% y-o-y to USD 604 mln, mainly due to worsening market conditions amid the global pandemic.  
  

The full version of the press-release can be found here.