10.02.2016, 01:04
Severstal Reports Q4 2015 Financial Results
OREANDA-NEWS. PAO Severstal reports its Q4 2015 financial results for the period ended 31 December 2015.
Group revenue decreased 16.1% q/q to USD 1,396 million (Q3 2015: USD 1,663 million). This primarily reflects a further decline in average selling prices and seasonally weaker sales volumes at Russian Steel. The decline was partially offset by an improved performance within the Resources division.
Despite the group EBITDA margin compressing 2.8 ppts q/q to 28.7% (Q3 2015: 31.5%), it remained one of the highest in the industry. Group EBITDA decreased 23.5% q/q to USD 401 million (Q3 2015: USD 524 million).
The net loss of USD 114 million (Q3 2015: USD 130 million) reflects a FX loss of USD 208 million and non-current assets impairment of USD 173 million. Adjusting for these non-cash items, Severstal would have posted an underlying net profit of USD 267 million (Q3 2015: USD 394 million excluding FX losses and non-current assets impairment);
Free cash flow decreased 49.9% q/q to USD 305 million (Q3 2015: USD 609 million), while strong free cash flow remained a strategic focus.
Cash outflow on capex of USD 122 million, 18.4% higher q/q (Q3 2015: USD 103 million).
Recommended dividend payment of 20.27 RUB per share for the three months ended 31 December 2015.
Group revenue decreased 16.1% q/q to USD 1,396 million (Q3 2015: USD 1,663 million). This primarily reflects a further decline in average selling prices and seasonally weaker sales volumes at Russian Steel. The decline was partially offset by an improved performance within the Resources division.
Despite the group EBITDA margin compressing 2.8 ppts q/q to 28.7% (Q3 2015: 31.5%), it remained one of the highest in the industry. Group EBITDA decreased 23.5% q/q to USD 401 million (Q3 2015: USD 524 million).
The net loss of USD 114 million (Q3 2015: USD 130 million) reflects a FX loss of USD 208 million and non-current assets impairment of USD 173 million. Adjusting for these non-cash items, Severstal would have posted an underlying net profit of USD 267 million (Q3 2015: USD 394 million excluding FX losses and non-current assets impairment);
Free cash flow decreased 49.9% q/q to USD 305 million (Q3 2015: USD 609 million), while strong free cash flow remained a strategic focus.
Cash outflow on capex of USD 122 million, 18.4% higher q/q (Q3 2015: USD 103 million).
Recommended dividend payment of 20.27 RUB per share for the three months ended 31 December 2015.
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