NLMK Group (LSE: NLMK, MOEX: NLMK), a vertically integrated steelmaker, has published today its preliminary Q1 2019 operating results.
Q1 2019 highlights:
Steel output decreased by 4% qoq to 4.2 m t due to the overhauls at the Russian sites and seasonal factors. A 3% yoy steel output reduction is also due to the overhauls in Q1 2019.
Steel capacity utilization remained high at 96% (-2 p.p. qoq).
Sales remained almost flat qoq totalling 4.6 m t (-1% qoq) supported by the sales of inventories accumulated in the end of 2018. Group sales grew by 11% yoy on the back of low base effect, which was due to higher slab sales to captive rolling facilities in Q1 2018.
Sales in home markets grew by 5% qoq (flat yoy) to 2.6 m t backed by higher slab sales in the Russian market. The share of Group sales in home markets increased to 56% (+1 p.p. qoq, -7 p.p. yoy).
Group sales in export markets totalled 2.0 m t (-2% qoq; +32% yoy). The quarter-on-quarter export reduction was due to lower pig iron sales. Year-on-year export sales growth is mainly attributable to higher slab sales to third parties.