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MarketScreener Homepage  >  Equities  >  London Stock Exchange  >  Public Joint Stock Company "Novolipetsk Steel"    NLMK

PUBLIC JOINT STOCK COMPANY "NOVOLIPETSK STEEL"

(NLMK)
  Report
Real-time Estimate Quote. Real-time Estimate CHI-X - 11/27 04:23:33 am
26.08 USD   +0.54%
11/21NOVOLIPETSK STEEL : NLMK ESG presentation – November 2020
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10/21NOVOLIPETSK STEEL : 3rd quarter results
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10/21NOVOLIPETSK STEEL : Press Release
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Novolipetsk Steel : NLMK Group Q2 and 6M 2020 IFRS Financial Results

07/24/2020 | 09:45am EST

NLMK Group (LSE, MOEX: NLMK) Q2 2020 EBITDA was $582 m, its EBITDA margin growing by 3 p.p. qoq to 27%.

Free cash flow (FCF) totalled $304 m. NLMK Board of Directors recommended approving Q2 dividends in the amount of RUB 4.75/share (132% of FCF).

Q2 2020 key highlights

Revenue decreased by 12% qoq to $2.2 bn (-22% yoy), following the decrease in average sales prices and the increase in the share of semis in the product mix against the backdrop of the weakening in demand for finished products, and following the drop in sales by NLMK USA and NLMK DanSteel.

EBITDA decreased by 2% qoq to $582 m (-21% yoy), against the backdrop of the decrease in revenue. This was partially offset by the drop in raw material prices, the devaluation of the ruble, and operational efficiency gains. EBITDA margin increased by 3 p.p. qoq to 27% (+1 p.p. yoy).

Free cash flow (FCF) decreased by 8% qoq to $304 m.

Net profit decreased by 73% qoq to $77 m (-81% yoy) due mainly to the depreciation of investments into NBH. Without taking this non-cash transaction into account, net profit would have decreased by 24% qoq to $221 m. Aside from the investment impairment, the result was impacted by the recognition of FX difference losses in the amount of $70 m.

6M 2020 key highlights

Revenue decreased by 18% yoy to $4.6 bn due to the drop in steel product prices and the increase in the share of semi-finished products in total sales by 4 p.p. yoy to 42%.

EBITDA decreased by 18% yoy to $1.2 bn, driven by the decrease in revenue. EBITDA margin was 25% (flat yoy).

Free cash flow decreased by 32% yoy to $635 m, following the decrease in EBITDA and growth of capex as part of Strategy 2022, with the capex programme going into active execution stage in Q2 2019.

Net profit decreased by 54% yoy to $366 m, against the backdrop of lower revenue and the recognition of NBH investment impairment.

Comment from NLMK Group CFO Shamil Kurmashov: 'In Q2 2020, the COVID-19 pandemic caused serious headwinds for overall business activity, resulting in a significant weakening in demand for steel in our traditional sales markets and a drop in steel product prices.

'In order to keep capacity utilization rates high at our flagship production site, NLMK Lipetsk, we made changes to our regional sales structure (for instance, we grew shipments to the Asian market in April and May), and diversified our product mix. At the end of April, we were already actively working on our export order book for June.

'In April we were forced to decrease our output at the NLMK Russia Long Products division, as construction projects were frozen across key regions, and due to a shortage of scrap amid lockdown constraints in Russia. Nonetheless, division sales grew qoq, driven by higher billet exports and the deferred demand effect at the end of Q2.

'All of our teams and departments worked together to implement cost optimization initiatives and new operational efficiency projects, enabling us to keep our financial performance high in the past quarter. Despite the fact that NLMK Group's revenue decreased by 12% qoq to $2.2 bn, EBITDA fell by a mere 2% qoq to $582 m EBITDA margin was 27%.

'Net debt/EBITDA stood at 0.79, total debt decreased by 3% qoq to $3.4 bn.

'In line with our dividend policy, NLMK management recommended the Board of Directors to pay Q2 2020 dividends in the amount of $400 m.'

Contact:

Maria Simonova

Tel: +7 (495) 504-05-04

(C) 2020 Electronic News Publishing, source ENP Newswire

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Financials (USD)
Sales 2020 9 239 M - -
Net income 2020 1 170 M - -
Net Debt 2020 2 150 M - -
P/E ratio 2020 13,5x
Yield 2020 8,81%
Capitalization 15 546 M 15 546 M -
EV / Sales 2020 1,92x
EV / Sales 2021 1,72x
Nbr of Employees -
Free-Float -
Chart PUBLIC JOINT STOCK COMPANY "NOVOLIPETSK STEEL"
Duration : Period :
Public Joint Stock Company
Technical analysis trends PUBLIC JOINT STOCK COMPANY "NOVOLIPETSK STEEL"
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 15
Average target price 24,33 $
Last Close Price 25,94 $
Spread / Highest target 7,94%
Spread / Average Target -6,22%
Spread / Lowest Target -30,6%
EPS Revisions
Managers
NameTitle
Grigory Vitalyevich Fedorishin President & Chairman-Management Board
Vladimir Sergeevich Lisin Chairman
Ben de Vos Vice President-International Operations
Shamil Ravilyevich Kurmashov Chief Financial Officer
Nikolai Alexeevich Gagarin Director