OREANDA-NEWS. October 12, 2011. EVRAZ Group S.A. (LSE: EVR) today announces its audited interim results for the six months ended 30 June 2011.

1H 2011 Highlights:

Financials:
Consolidated revenue USD 8,380 million (+31% vs. 1H 2010)
Consolidated adjusted EBITDA USD 1,629 million (+41%)
Net profit of USD 263 million (+49%). Without the effects of one-off transactions net profit would have been USD 494 million*
Operating cash flow USD 1,594 million (+114%)
Net debt USD 6,042 million (-15% vs. 31 December 2010)
Short-term debt USD 604 million (-15% vs. 31 December 2010)
Interim dividend of USD 89 million and special dividend of USD 402 million announced

Steel segment:
Crude steel production 8.6 million tonnes (+4%)
Total external steel sales volumes 7.9 million tonnes (+3%)
Steel segment revenue USD 7,492 million (+29%)

Mining segment:
Iron ore production 10.4 million tonnes (+8%)
Raw coking coal production 3.6 million tonnes (-2%)
Raw steam coal production 1.5 million tonnes (-37%)
Mining segment revenue USD 2,040 million (+82%)

Vanadium segment:
Primary vanadium production 10,158 tonnes (-3%)
External vanadium product sales volumes 11,088 tonnes (+6%)
Vanadium segment revenue USD 320 million (+10%)

Corporate developments:
Launch of Yerunakovskaya-VIII coking coal mine development
Capacity and product mix expansion in the North American tubular sector
Improvement of Broad-Based Black Economic Empowerment (B-BBEE) contributor rating in South Africa from Level 8 to Level 5

Financial management:
Issuance of USD 850 million eurobonds at a coupon rate of 6.75% due 2018
Early redemption of USD 622 million of 2013 eurobonds
Issuance of RUB20 billion (approx. USD 710 million) 5-year Rouble bonds
Conversion of USD 650 million convertible bonds originally due in 2014
Rating upgrades by Standard & Poor’s and Fitch to “B+” and “BB-“ respectively

CAPEX:
CAPEX for 1H 2011 of USD 462 million compared with USD 397 million for 1H 2010
CAPEX guidance for FY2011 is maintained at approximately USD 1.2 billion

Dividends:
Dividend policy amended to pay not less than 25% of the adjusted consolidated net income
EVRAZ declares for the first time since 2008 an interim dividend of USD 0.60 per share/USD 0.20 per GDR (a total of USD 89 million) and a special dividend of USD 2.70 per share/USD 0.90 per GDR (a total of USD 402 million)
Dividends record date – 28 October 2011; payment – no later than 30 days after the record date.