Evraz (EVR)

Sector:

Mining

Index:

FTSE 100

281.00p
   
  • Change Today:
    -9.70p
  • 52 Week High: 709.40p
  • 52 Week Low: 203.40p
  • Currency: UK Pounds
  • Shares Issued: 1,443.35m
  • Volume: 2,705,234
  • Market Cap: £4,055.82m
  • RiskGrade: 427

Evraz earnings fall after year of market headwinds

By Josh White

Date: Thursday 27 Feb 2020

LONDON (ShareCast) - (Sharecast News) - Evraz described its free cash flow for 2019 as "healthy" in its audited results on Thursday, even though it slipped to $1.46bn (?1.13bn), from $1.94bn.
The FTSE 100 company saw a continued reduction in net debt for the year ended 31 December, to $3.4bn from $3.6bn.

It said the total EBITDA effect from cost-cutting and customer focus initiatives was $407m for the year.

Consolidated EBITDA was down 31.1% year-on-year at $2.6bn, as the firm's EBITDA margin declined to 21.8% from 29.4%, which the board put down to lower vanadium and coal product prices, as well combined higher expenses.

Net profit declined to $365m from $2.47bn in 2018.

Looking at its cash costs, Evraz said the cash cost of slabs increased to $236 per tonne from $225 in 2018, following a change in the blast furnace charge mix at EVRAZ ZSMK, as well as the higher prices for raw materials and increased salary expenses.

Cash costs of coal concentrate decreased to $35 per tonne from $47 year-on-year, which was the result of increased mining volumes.

For iron, cash costs of ore products increased to $41 per tonne from $37, amid higher maintenance capital expenditure, as well as higher costs.

Evraz declared an interim dividend of $580.8m, or 40 cents per share, which it said reflected its confidence in the group's financial position and outlook.

"In 2019, global steel and commodity markets were not as favourable as they were in 2018," said chief executive officer Alexander Frolov.

"Steel prices have fallen as a result of excess supply in an environment of limited end-use demand.

"Global coal and vanadium markets returned to supply-demand equilibrium."

Frolov noted that, despite the market headwinds, the company was able to deliver "resilient" results.

"Retention of our low-cost and market leadership positions remain very important for Evraz.

"During the reporting period, the efficiency improvement programme delivered an EBITDA effect of $407m from customer focus and cost-cutting initiatives."

In 2020, Frolov said Evraz would continue to make "significant efforts" to improve safety and other vitally-important areas of sustainable development.

"The group has also set ambitious production targets for the year that should help it to reach solid results despite potential market headwinds."

At 0857 GMT, shares in Evraz were down 3.74% at 362.5p.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Evraz Market Data

Currency UK Pounds
Share Price 281.00p
Change Today -9.70p
% Change -3.34 %
52 Week High 709.40p
52 Week Low 203.40p
Volume 2,705,234
Shares Issued 1,443.35m
Market Cap £4,055.82m
RiskGrade 427

Evraz Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
88.90% above the market average88.90% above the market average88.90% above the market average88.90% above the market average88.90% above the market average
86.67% above the sector average86.67% above the sector average86.67% above the sector average86.67% above the sector average86.67% above the sector average
Price Trend
48.7% below the market average48.7% below the market average48.7% below the market average48.7% below the market average48.7% below the market average
17.65% above the sector average17.65% above the sector average17.65% above the sector average17.65% above the sector average17.65% above the sector average
Income
86.22% above the market average86.22% above the market average86.22% above the market average86.22% above the market average86.22% above the market average
100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average
Growth
2.03% above the market average2.03% above the market average2.03% above the market average2.03% above the market average2.03% above the market average
42.86% above the sector average42.86% above the sector average42.86% above the sector average42.86% above the sector average42.86% above the sector average

What The Brokers Say

Strong Buy 3
Buy 1
Neutral 6
Sell 1
Strong Sell 1
Total 12
neutral
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Evraz Dividends

  Latest Previous
  Interim 2nd Interim
Ex-Div 05-Mar-20 15-Aug-19
Paid 27-Mar-20 05-Sep-19
Amount 40.00¢ 35.00¢

Trades for 29-May-2020

Time Volume / Share Price
16:27 308 @ 281.00p
16:27 100 @ 281.00p
16:27 593 @ 281.00p
16:27 303 @ 281.00p
16:26 47 @ 281.20p

Evraz Key Personnel

CEO Alexander Frolov

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