Industrial Metallurgical Holding
IMH FY 2017 IFRS CONSOLIDATED FINANCIAL RESULTS
EquityStory.RS, LLC-News: Industrial Metallurgical Holding / Key word(s): Final Results PRESS-RELEASE IMH FY 2017 IFRS CONSOLIDATED FINANCIAL RESULTS
Industrial Metallurgical Holding (IMH), one of the largest global suppliers of merchant pig iron and the biggest Russian merchant coke producer announces FY 2017 IFRS financial results. IMH key financial indicators:
Key 2017 events and capital investment projects
Financial results
Key segments operational and financial results Coal segment
Coke segment
Ore & Pig Iron segment
Sergey Frolov, Vice President for Strategy and Communications of the Industrial Metallurgical Holding, commented on the 12M 2017 financial results: “Key events in 2017 include the Company’s new coal mining facilities commissioning (Tikhova mine and the Second stage of Butovskaya mine located in the Kemerovo Region). The two mines are large coal-producing enterprises with state-of-the-art equipment for efficient and safe coal mining. Both mines meet the Industry 4.0 modern concept idea. As the mines reach full capacity, the cost of production is going to come down to become one of the lowest in the region, and the Company will be able to cover all of its feedstock requirements with high quality in-house coal. Another important point is that we put our mines on stream when coal prices moved into the growth phase of the cycle. Following the launch of the mines, a combination of lower CAPEX with a dramatic growth in cash flows from operations in 2H 2017 resulted in high free cash flow (RUB 2.3 bln) reported for the year. The growing self-sufficiency in coal made a significant contribution to Company EBITDA. In 2018, we are set to continue our efforts to improve the Company’s self-sufficiency in iron ore through the construction of a new underlying horizon on Gubkina iron ore mine operated by KMAruda. The new horizon can be put on stream as early as next year. Its design capacity of 7 mtpa of iron ore meets the current requirements of Tulachermet for iron ore concentrate. Our performance improvement projects are having a positive effect on Company’s financial results. Examples include the increase in power generation at Koks plant and the stable operation of the desulphurisation unit at Tulachermet, which helped to increase the final goods production. A large-scale project on introduction of various tools and practices of lean manufacturing was launched. We continue receiving proposals with initiatives under the Total Production Optimisation Programme. Improvements suggested by employees since the start of the program, are saving nearly RUB 900 mln for the Company each year.”
Sergey Cherkaev, Vice President and CFO of the Industrial Metallurgical Holding, also commented on the 12M 2017 financial results: “The Company reported significant revenue and EBITDA growth in 2017, as a result of our consistent efforts to reduce costs, improve production efficiency and increase self-sufficiency in raw materials. Effective coordination of all Group divisions means that the Company generates profit even in a volatile market situation. In 2017, the most important event in our financial operations was the successful placement of a new 5-year $ 500 mln Eurobond with a 7.5% coupon rate. The issue attracted a broad and diversified investor base, and the book was twice oversubscribed. Proceeds were used to finance a partial redemption of an earlier Eurobonds issue and optimise the structure of our debt portfolio. Generally, I would like to note that we have perfectly balanced our long-term and short-term debt portfolios. The Company’s liquidity and financial leverage ratios are within the optimal range. In 2H 2017, liquidity ratios followed a positive trend, and the current volume of committed loan facilities is close to RUB 44 bln. The Company has only one major capital investment project: the second underlying horizon of the Gubkina mine operated by KMAruda. We expect this project to generate cash flows starting from 2019. The project is financed with a special investment loan facility from Eurasian Development Bank. In general, our CAPEX expectations for 2018 are significantly below the 2017 level. Finally, I’d like to point out that two of our three international ratings have a positive outlook. This is a clear indication that international rating agencies expect the following improvement in our financial stability”. *** Industrial Metallurgical Holding (IMH) is a Russian vertically integrated company, specializing in production of pig iron, extraction and procession of coking coal and iron ore, foundry castling and powder metallurgy. IMH is one of the largest world suppliers of merchant pig iron and the biggest Russian merchant coke producer. The IMH main operational business units are Coal division, Coke division, Iron ore & pig iron division and Powder mettalurgy division. The Group’s key production facilities are located in Kemerovo, Belgorod, Tula and Kaluga regions of Russian Federation. *** Ekaterina Popova
12.04.2018 Dissemination of a Corporate News, transmitted by EquityStory.RS, LLC – a company of EQS Group AG. |
Language: | English |
Company: | Industrial Metallurgical Holding |
2nd Verkhniy Mikhailovskiy proezd, 9 | |
115419 Moscow | |
Russia | |
Phone: | +7 495 725 56 80 |
Fax: | +7 495 633 13 12 |
E-mail: | popova@metholding.com |
Internet: | www.metholding.ru |
ISIN: | XS1255387976 |
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