[Ferro-Alloys.com] NLMK Group announced that in Q3 2020 its revenue increased by 3% QoQ to USD 2.2 billion & EBITDA totalled USD 579 million down 1% QoQ. NLMK Group CFO Shamil Kurmashov said “In Q3 2020 global business activity began to recover gradually, driving an uptick in demand for steel in our traditional sales markets and an increase in steel product prices. Nonetheless, the growing amount of new COVID-19 cases in a number of regions in September and uncertainty about future measures aimed at countering the pandemic could slow the global economic recovery.”

 

Q3 2020 key highlights

 

Sales of steel products grew by 2% QoQ to 4.4 million tonnes. A 13% YoY reduction was due to a drop in prices for steel products and an increase in the share of semi-finished products in the sales mix.

An increase in sales, an improvement in the product portfolio structure, and the devaluation of the ruble offset the negative effect from production losses during the restoration of the conveyor gallery at Stoilensky in September 2020. EBITDA margin was 26%

 

Net profit increased 4-fold QoQ to USD 312 million against the low base of the previous quarter when investments in NBH were impaired (a non-cash transaction).

 

9M 2020 key highlights

 

Revenue decreased by 17% YoY to USD 6.9 billion due to the drop in steel product prices and the increase in the share of semi-finished products in total sales by 4 p.p. to 40%.

 

EBITDA decreased by 16% YoY to USD 1.8 billion, driven by the decrease in revenue. EBITDA margin was 26% (+1 p.p. YoY).

 

Net profit decreased by 40% YoY to USD 678 million, against the backdrop of lower revenue and the recognition of NBH investment impairment in the amount of USD 120 million in Q2 2020. Without taking this non-cash transaction into account, net profit would have totalled USD 798 million.

 

Source: STEELGURU