Q1 2020 key highlights
Revenue grew by 6% qoq to
EBITDA increased to
Free cash flow totalled
Net profit grew by 45% qoq to
Contact:
Dmitry Kolomytsyn
Tel: +7 (495) 504 0504
Comment from
'Our key markets saw an uptick in demand and growing prices in the first half of Q1. However, the spread of the coronavirus pandemic resulted in slowing down business activities and increasing uncertainty in the second half of the quarter and in April. In Q2 2020, steel demand in EU and US could drop at double digit rates yoy, analysts predict. In
'In this context, we have taken a number of preventive measures to ensure our financial stability. Our 2020 capex guidance was reduced to
'NLMK shareholders decided not to approve the Q4 2019 dividend amount recommended earlier by the Board of Directors and proposed that it be halved. The Board of Directors gave NLMK shareholders an updated recommendation on the payment of Q4 2019 dividends in the amount of
'A weak market is a good time to carry out the second stage of our planned major repairs at NLMK Lipetsk BF and BOF operations that will enable us to grow our steel output by 1 million tonnes next year. Amid these repairs,
'All NLMK Group's production sites currently continue operating.
'NLMK Group's flexible business model and Strategy 2022 projects and programmes enabled us to post strong financial in the previous quarter.
EBITDA is the operating profit before equity share in financial results of joint ventures, impairment of capital assets and losses from retirement of fixed assets, allowed for amortization and depreciation.
Profit for the period attributable to NLMK shareholders.
Free cash flow is determined as net cash from operations plus interest received net of interest paid and capital investment.
Net debt is calculated as the sum of long-term and short-term borrowings less cash and cash equivalents, as well as short-term deposits at period end. Net debt / EBITDA is represented by net debt as at the end of the reporting period and EBITDA as last 12 months EBITDA.
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