Metalloinvest increased 6-month ore production by 2.6% до 20.2 mt

AK&M 31 July 2020 20:33

In 1H 2020, Metalloinvest increased iron ore production by 2.6% year-on-year to 20.2 million tonnes, the company informed.

Growth was driven by an increase in productivity due to the processing of higher quality ore and the reduction of iron ore consumption for concentrate.

Pellet production increased by 0.6% y-o-y and amounted to 14.2 mn tonnes mainly as a result of an increase in productivity due to a change in the pellet product mix.

In 1H 2020, the Company produced 4.1 mt of HBI/DRI, which represents 1.6% growth year-on-year mainly due to an increase in productivity.

Total iron ore product shipments to third parties increased by 8.4% y-o-y and amounted to 13.5 mn tonnes. This is mainly due to an increase in shipments of pellets to China.

Exports increased by 28.3% driven by doubled shipments to Asia.

In 1H 2020, Metalloinvest produced 1.3 mt of hot metal, which represents a 7.2% year-on-year decrease. This is mainly due to a decrease in productivity of Blast Furnace #3 at Ural Steel.

Crude steel production increased by 4.6% year-on-year to 2.5 million tonnes. This growth was mainly a result of the reconstruction of FMF #2 at Ural Steel in H1 2019 and the increase in productivity following a change in the product mix at OEMK

As a result of a decrease in hot metal production, as well as an increase of internal pig iron consumption to secure steel production growth, pig iron supplies to third parties decreased from 0.9 mn tonnes in H1 2019 to 0.7 mn tonnes in H1 2020

Pig iron and steel product shipments to the Russian market decreased by 3.4% year-on-year to reach 31%.

Metalloinvest (tax number: 7705392230) is a leading producer and supplier of iron ore products and direct reduced iron in the global market, one of the regional producers of high-quality steel. The company possesses the world's largest iron ore deposits under development and has achieved one of the lowest cost of IORM production values. 100% of the company's shares are controlled by USM Holding Company LLC whose largest beneficiary is Alisher Usmanov (49%).

IFRS net profit of Metalloinvest for 2019 increased by 5.1% to $1.731 billion from $1.647 billion a year earlier. Revenue decreased by 3.2% to $6.96 billion from $7.187 billion. EBITDA dropped by 14.3% to $2.514 billion from $2.934 billion.

IFRS net profit of Metalloinvest for the first quarter of 2020 decreased by 84.6% to $83 million from $539 million a year earlier. Revenue decreased by 17.2% to $1.536 billion from 1.856 billion, EBITDA by 26.8% to $534 million.