U.K.-based mining giant Evraz, which operates mainly in Russia, expects its net debt to earnings before interest, taxes, depreciation and amortization (EBTIDA) ratio to fall to below 3x in January-June from 3.1x as of the end of 2016, president Alexander Frolov said in a conference call.
Evraz’ dividend policy stipulates that the company may pay dividends if the ratio stays below 3x for 12 months. But Frolov said that the company’s priority was debt redemption.
“I mean we are sure that the net debt to EBITDA ratio will fall below three until the end of the first half of the year, but it is too early to speak about dividends,” he said.
Nikolai Ivanov, vice president for finance at Evraz, said that the company was to redeem $294 million in 2017, which was not a large sum and Evraz would be able to do it with its own money. But in January-June 2018 the company is to redeem $657 million worth of Eurobonds.
“We are now studying all possible options of refinancing and we will look for the best options. The market is quite good now, and we are tracking the situation,” he said. (Prime/Ukrainian metal)