Metinvest’s revenues fell to $10,453mn in 2020, down by 3pc from the prior year on lower average prices of steel and coke products amid subdued steel demand due to the economic impact of COVID-19 pandemic. Adjusted EBITDA grew by 82pc to $2,204mn with EBIDTA margin improvement of 10 percentage point to 21pc.
Metinvest’s EBITDA improved driven by operational improvements, lower spending on raw materials, energy and higher sales volumes and offset by lower steel products, coke and coking coal concentrate selling prices and weak pellet premiums. In 2020, Metinvest’s net profit rose to $ 526mn, up by 54pc from $341mn in 2019.
The company produced 8.3mn mt crude steel in 2020, up 9pc from a year ago, while iron ore concentrate output was 30.5mn mt and coking coal concentrate at 2.9mn mt. Crude production improved on a 4pc rise in Azovstal plant’s output amid increased hot metal production and a 14pc increase in production at Ilyich Steel on the reallocation of hot metal to steelmaking.
Sales
In 2020, Metinvest’s metallurgical sales declined by 6pc from a year ago on lower average prices of steel and coke products and the impact of the pandemic. However, sales volumes increased due to realization of recent investments and the global sales network. Sales of semis and finished steel rose by 7pc from the prior year. Share of European sales decreased to 30pc from 33pc in 2019 due to weak steel demand in the region. Sales in Ukraine dipped a percent to 26pc with higher Pig iron and steel shipments, while sales to Southeast Asia grew by a percent to 6pc. Higher demand for higher slabs and HRC in Turkey increased sales to MENA to 21pc from 19pc a year ago.
Mining sales increased 9pc from a year ago on a 9pc rise in iron ore concentrate sales volume and favourable prices. Strong demand in China increased share of Southeast Asia sales to 44pc in 2020 from 23pc in 2019, while sales to Europe dropped to 19pc from 37pc in 2019.