Due to increased volatility on global markets associated with the COVID-19 outbreak, NLMK Group is withdrawing its previously issued guidance on 2020 capex program of $1.1-1.2 billion for a downward revision.
Commencement of certain expansion projects could be postponed. At the same time, the company is proceeding with its major overhauls at NLMK Lipetsk primary steelmaking operations scheduled for 2020.
Cash and cash equivalents, as well as short-term liquid financial investments on the company’s balance sheet currently stand at $1.56 billion (+79% vs. December 31, 2019). Available credit lines are estimated at an additional $0.8 billion. NLMK’s current level of liquidity creates a safety buffer to ensure uninterrupted business operations.
The company’s net debt stands at $1.9 billion (+5%). Average cost of debt remains low at 3.16%. NLMK has sufficient liquidity to cover all short-term debt maturities, including renewable working capital lines. (NLMK/Ukrainian metal)