Mr. Oleksandr Liubarev, CFO of Donetskstal Group, a large Ukrainian coal, coke, cast iron and rolled steel manufacturer, said that the company expected that in 2012 the group would see $171 million in net profit, 45% less than on 2011.
He added that thanks to the debt restructuring conducted last year, the debt burden in coming years would not hinder the company development. Until H2, 2014 when the group is to pay over $350 million, payments will reach some $75-95 million each six months.
The group revenue this year could fall by 21% to $1.644 billion due to the worsening of the situation.
Donetskstal expects that in 2013 profitability and sales will be restored. In 2013, it is anticipated that the net profit will expand to $277 million and revenues to $2.008 billion with further boosting in 2014 to $328 million and $2.196 billion respectively.
The EBITDA margin will be retained at higher than 27%, while the ratio of net debt to EBITDA will be no lower than 2.5. The group plans to continue a capital investment program, spending $365 million this year, $248 million next year and $228 million in 2014 on its realization.
The $1.2 billion capital investment program for 2012-2016 foresees spending 76% of the funds to develop coal extracting facilities, 17% to upgrade metallurgical facilities and 7% to develop coke production facilities. 81% of the sum is classified as maintenance, while the remaining 19% is investment which will be spent mainly this year and in coming years. (SteelGuru)