Severstal : reports Q3 2019 operational results

PAO Severstal (SVST) Severstal reports Q3 2019 operational results 11-Oct-2019 / 09:00 MSK Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group. The issuer is solely responsible for the content of this announcement. Severstal reports Q3 2019 operational results Moscow, Russia - 11October 2019 - PAO Severstal (MICEX-RTS: CHMF; LSE: SVST), one of the world's leading vertically integrat­­ed steel and steel-related mining companies, today announces its operational results for Q32019. Q3 2019 GROUP HIGHLIGHTS Hot metal output increased 7%q/q in Q3 2019 to 2.46 mln tonnes (Q2 2019: 2.30 mln tonnes)followingshort-term maintenance worksat BF#1, BF#4 and BF#5 in the previous quarter. Crude steel production declined1% to3.03 mln tonnes (Q2 2019: 3.06 mln tonnes) mainly reflecting a decline in EAF steel output following the saleof Balakovo mini-millin July 2019.   Consolidated steel product sales remained flat q/q at 2.83 mln tonnes in Q3 2019 (Q2 2019: 2.83 mln tonnes). The share of domestic salesremained at historically high levels of 67% due to their continued attractiveness (Q2 2019: 70%).   The share of high value-added (HVA) products within the sales portfolio amounted to 45% (Q2 2019: 46%), reflecting a decline in sales of galvanised, colour-coated and cold-rolled products due to short-term maintenance works at one of the pickling lines. This was offset by higher sales volumes of thick plate and lower sales of long products.   Coking coal concentrate sales volumes from Vorkutaugolsurged41%q/q in line withthe 42% increase q/q in production of run-of-mine coal.   Iron ore pellet sales declined 15% to 2.46 mln tonnes (Q2 2019: 2.90 mln tonnes) reflecting higher production of iron ore concentrate at Karelsky Okatysh.   Iron ore concentrate sales volumes increased 35% to 1.93 mln tonnes (Q2 2019: 1.43 mln tonnes) driven by production volumes growth at Karelsky Okatysh. 9M 2019 GROUP HIGHLIGHTS Hot metal output increased 3% y/y to 7.13 mln tonnes in 9M 2019 (9M 2018: 6.91 mln tonnes) driven by improved maintenance works efficiency and higher quality of raw materials. Crude steel production remained almost flat at 9.13 mln tonnes (9M 2018: 9.10 mln tonnes), predominantly reflecting higher aggregate productivity levels, which were offset by lower EAF production in Q3 following the sale of Balakovo mini-mill.   Coking coal concentrate sales volumes from Vorkutaugol increased 43% y/y,driven by growth incoal production.Iron ore concentrate sales volumes increased 14% y/y to 4.66 mln tonnes (9M 2018: 4.08 mln tonnes) predominantly reflecting production volumes growth at Karelsky Okatysh.   The share of HVA products remained high at 45% in 9M 2019, primarily reflecting higher sales of galvanised and colour-coated products following the launch of new product lines, which reached their full utilisation rates in Q1 2019. SUMMARY OF KEY PRODUCTION, SALES VOLUMES   Production, thousandsof tonnes Q3 2019 Q2 2019 Change, % 9M 2019 9M 2018 Change, % CrudeSteel (RussianSteel) 3,032 3,057 (1%) 9,133 9,098 0% Hotmetal (RussianSteel) 2,458 2,304 7% 7,125 6,913 3%     Sales volumes, thousands of tonnes Q3 2019 Q2 2019 Change, % 9M 2019 9M 2018 Change, % Cokingcoalconcentrate 1,351 958 41% 3,340 2,331 43% Ironorepellets 2,461 2,899 (15%) 8,192 8,054 2% Ironoreconcentrate 1,931 1,428 35% 4,660 4,080 14% Totalsteelproducts (Consolidated) 2,834 2,837 0% 8,503 8,420 1% Total steel products (Russian Steel) 2,847 2,848 0% 8,538 8,453 1%               High value added steel products, % Q3 2019 Q2 2019 Change, % 9M 2019 9M 2018 Change, % Severstal (Consolidated) 45% 46% (1 ppts) 45% 46% (1 ppts) Severstal RussianSteel 45% 46% (1 ppts) 45% 46% (1 ppts)       SEVERSTAL'S CONSOLIDATED SALES (NET OF INTERCOMPANY SALES)   Sales volumes, thousands of tonnes Q3 2019 Q2 2019 Change, % 9M 2019 9M 2018 Change, % Coal: 330 388 (15%) 1,250 1,127 11% Cokingcoalconcentrate 66 108 (39%) 331 190 74% Steamcoal 264 280 (6%) 919 937 (2%) Ironore: 1,443 1,686 (14%) 4,785 5,277 (9%) Ironorepellets 1,380 1,488 (7%) 4,170 4,707 (11%) Ironoreconcentrate 63 198 (68%) 615 570 8% Semi-finishedproducts 89 69 29% 279 538 (48%) Rolledproducts: 2,292 2,313 (1%) 6,916 6,533 6% Hot - rolledcoil 1,168 1,040 12% 3,310 2,878 15% Hot - rolledplate 244 225 8% 702 642 9% Cold - rolledcoil 226 242 (7%) 743 990 (25%) Galvanised and metallic coated coil 238 254 (6%) 729 627 16% Colourcoatedcoil 122 141 (13%) 365 294 24% Longproducts 294 411 (28%) 1,067 1,102 (3%) Downstreamproducts: 453 455 0% 1,308 1,349 (3%) Metalwareproducts 147 140 5% 413 424 (3%) Largediameterpipes 100 106 (6%) 303 333 (9%) Other tubes, pipes, formed shapes 206 209 (1%) 592 592 0%     SEVERSTAL RESOURCES   Coking coal concentrate sales volumes from Vorkutaugol surged 41% q/q reflecting the 42%increase q/q in production of run-of-mine coal.   Iron ore pellet sales declined 15% to 2.46 mln tonnes (Q2 2019: 2.90 mln tonnes) reflecting higher production of iron ore concentrate at Karelsky Okatysh.   Iron ore concentrate sales volumes increased 35% to 1.93 mln tonnes (Q2 2019: 1.43 mln tonnes) driven by production volumes growth at Karelsky Okatysh.   Salesvolumes, thousands tonnes Q3 2019 Q2 2019 Change, % 9M 2019 9M 2018 Change, % Coal: 1,616 1,238 31% 4,260 3,269 30% Cokingcoalconcentrate 1,351 958 41% 3,340 2,331 43% Steamcoal 265 280 (5%) 920 938 (2%) Ironore: 4,392 4,327 2% 12,852 12,134 6% Ironorepellets 2,461 2,899 (15%) 8,192 8,054 2% Ironoreconcentrate 1,931 1,428 35% 4,660 4,080 14%       SEVERSTAL RUSSIAN STEEL ('RSD') RSD steel product sales remained flatq/q at 2.85 mln tonnes in Q3 2019 (Q2 2019: 2.85 mln tonnes).   The share of domestic sales declined 3 ppts, to 67%, but remained at historically high levels due to a favourable domestic pricing environment (Q2 2019: 70%).   The share of high value-added (HVA) products within the sales portfolio amounted to 45% (Q2 2019: 46%), reflecting a decline in sales of galvanised, colour-coated and cold-rolled products due to short-term maintenance works at one of the pickling lines. This was offset by higher sales volumes of thick plate and lower sales of long products.   LDP sales volumes declined6% q/q, reflecting changes in the product mix. Izhora Pipe Mill maintained its 100% utilisation rate in Q3 2019.   The weighted average selling price for the whole range of rolled steel products remained almost flat in Q3 2019, reflecting the flexibility of Severstal's distribution channels as well as a favourable pricing environment in the domestic market. Sales volumes, thousands of tonnes Q3 2019 Q2 2019 Change, % 9M 2019 9M 2018 Change, % Totalsteelproducts 2,847 2,848 0% 8,538 8,453 1% Semi-finishedproducts 89 69 29% 279 538 (48%) Rolledproducts: 2,305 2,322 (1%) 6,949 6,565 6% Hot - rolledcoil 1,169 1,040 12% 3,311 2,879 15% Hot - rolledplate 245 225 9% 703 642 10% Cold - rolledcoil 226 242 (7%) 743 990 (25%) Galvanised and metallic coated coil 238 254 (6%) 729 627 16% Colourcoatedcoil 122 141 (13%) 365 294 24% Longproducts 305 420 (27%) 1,098 1,133 (3%) Downstreamproducts: 453 457 (1%) 1,310 1,350 (3%) Metalwareproducts 148 142 4% 416 425 (2%) Largediameterpipes 100 106 (6%) 303 333 (9%) Other tubes, pipes, formed shapes 205 209 (2%) 591 592 0%     Salesprice, $/tonne Q3 2019 Q2 2019 Change, % 9M 2019 9M 2018 Change, % Semi-finishedproducts 414 450 (8%) 427 468 (9%) Hot - rolledcoil 510 514 (1%) 506 562 (10%) Hot-rolledplate 683 659 4% 660 716 (8%) Cold - rolledcoil 647 629 3% 621 627 (1%) Galvanised and metallic coated coil 733 729 1% 724 761 (5%) Colourcoatedcoil 905 918 (1%) 894 943 (5%) Longproducts 498 484 3% 476 494 (4%) Metalwareproducts 965 981 (2%) 965 970 (1%) Largediameterpipes 945 1,033 (9%) 996 1,116 (11%) Other tubes, pipes, formed shapes 580 585 (1%) 578 611 (5%)         Notes:               1) All production data is reported in thousands of tonnes; 2) Sales prices are stated on EXW basis; 3) Segmental data includes intercompany sales; 4) Semi-finished products include pig iron, slabs, billets, ingots, steel casting and forgings; 5) Large diameter pipes include all pipes with a diameter between 820 and 1420 mm.   Contacts               Investor Relations Evgeny Belov T: [phone] ext. 6445 [e-mail]   Public Relations Anastasia Mishanina T: [phone] ext. 6457 [e-mail]   Severstal's financial communications agency - Hudson Sandler Andrew Leach / Emily Dillon T: [phone] ***     P?? Severstal is one of the world's leading vertically-integrated steel and steel related mining companies, with assets in Russia, Latvia and Poland. Severstal is listed on RTS and MICEX and the company's GDRs are traded on the LSE. Severstal reported revenue of $8,580 million and EBITDA of $3,142 million in 2018. Severstal's crude steel production in 2018 reached 12.0 million tonnes. www.severstal.com

ISIN:	US8181503025
Category Code:	TST
TIDM:	SVST
LEI Code:	213800OKDPTV6K4ONO53
Sequence No.:	23109
EQS News ID:	888559

End of Announcement	EQS News Service