Evraz has announced a rise of 45% to $14.1bn in revenues across all business segments in a solid report which will be overshadowed by the Russian focused steelmaker’s source of income.
Higher sales prices for semi-finished and construction items, as well as increased volumes for vanadium products, contributed to the increase. Third-party sales of coal with higher average realised prices also made a contribution to the rise of total segment revenues.
Revenues in the coal segment climbed by 55.8% over a year to $2.3bn helped by a 68.8% increase in coal product sales prices.
Net profit saw a 262% rise from $858m to $3.1bn in one year, along with EBITDA increasing by 126% to $5bn, due to growth in sales prices of vanadium, coal products and higher steel.
An increase of 0.8% in selling and distribution expenses in 2021, were recorded due to rise in freight transportation cost because of larger volumes and higher freight rates.
“In 2021, the steel industry was mostly driven by demand-side ?uctuations. Steelmakers increased output in anticipation of more robust demand from the construction and manufacturing sectors. Unable to keep up with the accelerated pace of recovery, steel prices rose to their highest in years,” said Aleksey Ivanov, Chief Executive Officer, EVRAZ.
“Amid the upswing on global markets, EVRAZ delivered outstanding financial results in the year, with total segment EBITDA amounting to US$5,015 million and the EBITDA margin reaching 35%. In addition, the Group continued to implement its efficiency improvement programme, which resulted in an EBITDA e?ect of US$590 million.”
The Company announced an interim dividend of 50 cents.
Evraz has been heavily hit by the events in Ukraine but the company avoided any major acknowledgement in today’s release.
“Results from Russian steel producer Evraz provided an indication of the tricky spot firms with links to Russia are in – with the company just barely acknowledging the conflict, or ‘geo-political situation’ as it euphemistically dubs it, in a statement so thinly worded as to be meaningless,” said AJ Bell investment director Russ Mould.
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