Driven by high global finished steel prices and recovery in demand, Metinvest group reported strong financial results for H1 2021 (Jan-June).
Production
In H1 2021, the hot metal output rose by 8pc to 4.4mn mt, due to a lower base effect.
Crude steel output rose by 10pc to 4.35mn mt on the back of greater hot metal production at both Mariupol steelmakers.
In August 2020, Metinvest acquired assets of PJSC DneprovskyIron & Steel Integrated Works (DMK) in Kamianske, Ukraine for around $340mn. DMK has an annual crude steel production capacity of 3.2mn mt.
There was a 23pc increase in flat product output in H1 2021 and a 17pc rise in long product output.
Sales
In H1 2021, metallurgical sales rose by 65pc from the prior year. Shipments of finished steel products were up 12pc with higher demand from the European markets.
Mining sales rose by 90pc from the prior year, amid higher iron ore selling prices and pellet premiums globally. Pellet shipments grew by 36pc.
Financials
The consolidated revenues increased by 70pc to $8,470mn from the prior year. Metallurgical revenues rose by 65pc to $6,437mn while mining revenues jumped by 90pc to $2,033mn. Operating profits jumped by 32 folds to times to $2,760mn.
The net loss of H1 2020 hit by pandemic turned to net profits of $2,769mn in H1 2021. While capex increased by 31pc from the prior year to $411mn in H1 2021 with strategic projects accounting for 28pc.