NLMK Group has announced its Q3 financial results.
Revenue amounted to $2,576 million, down by 8% QoQ, with an EBITDA margin of 25%.
Free cash flow totaled $249 million, down by 3%.
NLMK Group CFO Shamil Kurmashov: “Q3 saw the situation on the steel markets aggravate due to a weakening in demand and the resulting decline in steel prices, amid an economic growth slowdown in the company’s key international sales regions. NLMK continued overhauling its blast furnace and basic oxygen furnace operations, which would enable the company to have increased its steel output by 1 million tons by 2021, to 14.2 million tons per year. The overhauls drove the company’s steel product sales down by 6% QoQ. As a result, NLMK Group’s revenue dropped by 8% QoQ. EBITDA was down to $654 million, while EBITDA margin stood at 25%, down by 1%, caused by narrower price spreads. Net debt/EBITDA stands at a comfortable 0.59х (0.39х as of the end of Q2). This growth was driven by keeping dividend payments high against the backdrop of investment as part of executing NLMK Group’s strategy. Free cash flow totaled $249 million. Positive free cash flow, Net debt/EBITDA below 1.0x and dividend policy implementation enabled the company’s management to recommend NLMK’s Board of Directors $300 million in Q3 dividends.” (NLMK/Ukrainian metal)