Revenue of Metinvest B.V. (the Netherlands), the parent company of the Metinvest mining and metallurgical group, in November 2020 increased by 8.4%, or $73 million, compared to the previous month, to $941 million from $868 million.
According to the published preliminary unaudited consolidated monthly results of the company’s financial statements, the overall rate of EBITDA amounted to $263 million in November, which is $23 million more than in October ($240 million), while EBITDA from participation in the joint venture was $53 million (in October $56 million).
According to the financial statements, the adjusted EBITDA of the metallurgical division of the group for November 2020 amounted to “plus” $136 million (in October, “plus” $140 million), including $10 million from participation in the joint venture ($9 million); EBITDA of the mining division – $142 million (in October $128 million), including from the joint venture – $43 million ($47 million). The management company spent $8 million ($7 million).
Total revenue in November consisted of $759 million ($689 million in October) for the metallurgical division, $268 million ($228 million) for the mining division, and intragroup sales of $86 million ($49 million).
The total debt of the company in November increased by $8 million compared to October, to $2.940 billion from $2.932 billion, whiles the amount of cash increased by $101 million, to $813 million from $712 million.
Funds used in investment activities amounted to $81 million and in financial activities to $71 million.
Metinvest received $61 million from the resale of square billets (produced by PJSC Dniprovsky Metallurgical Plant of the Industrial Union of Donbas corporation) in November in the amount of 138,000 tonnes. In addition, $120 million was received from the resale of 225,000 tons of flat-rolled products, 67,000 tonnes of long rolled products for $34 million, and 113,000 tonnes of cast iron for $44 million.
In general, the company in November sold 517,000 tonnes of semi-finished products for $222 million, 801,000 tonnes of finished metal products for $454 million, and 165,000 tonnes of coke for $34 million.
In November, the group sold 1.589 million tonnes of iron ore for $172 million, and 49,000 tonnes of coal concentrate for $6 million.
PrJSC Centravis Production Ukraine, part of Centravis Ltd, doubled EBITDA in 2020 compared to the previous year, to EUR 14 million.
Chief Financial Officer Alexandre Joseph said at an online press conference of Centravis on Friday that the production of stainless pipes last year decreased by 9.3% compared to the previous year, to about 19,050 tonnes.
In 2021, it is planned to produce 17,500 tonnes of products.
CEO of the company Yuriy Atanasov said that a decrease in pipe production is planned as a result of a change in strategy, as well as a reduction in production capacity and personnel by 20-25% due to the fall of markets in 2020 due to the coronavirus (COVID-19) pandemic.
At the same time, he said that 2020 was a difficult year for the company due to lockdowns and falling demand. For Centravis, the fall in oil prices in early 2020 was significant, as this also affected suppliers of stainless pipes for the oil and gas industry. At the same time, during the spring lockdown in many countries, the company even increased its supply, but in the summer there was a decrease, in connection with which it had to cut production and staff. “We took an unprecedented step, we offered severance pay in the amount of from three to six salaries, depending on the length of service of employees, spending more than UAH 15 million on this, which is very significant for our company,” Atanasov said.
In a press release published by the company on Friday, it is stated that in 2020 Centravis has continued to develop sales in all regions of the world. The company supplies seamless pipes to the European Union, the Middle East, Latin America, Eastern Europe, the United States, India, Australia, Japan, Canada, and other regions and countries.
Among the key clients of Centravis in 2020 are Buhlmann Group, Damstahl GmbH, ThyssenKrupp, Salzgitter AG, and Karl Mertl Handelsges. The company has completed a number of large-scale orders for such global companies as Bousted International Heaters, Stainalloy Nederland, and Buhlmann Group.
“Last year has tested the strength of everyone without exception. I think we have coped with all the challenges. Our team has managed to adapt. We have improved our products and helped our customers to solve their problems. But most importantly, we have strengthened our stability and are ready to develop in 2021,”Atanasov said.
According to him, focus on product quality and high customer service has helped Centravis maintain a stable position among the world’s best manufacturers of seamless pipes.
Centravis Production Ukraine is the only specialized enterprise for the production of seamless stainless steel pipes in the CIS and the leading exporter in its segment.
Interpipe, the international vertically integrated pipe and wheel company, in January-September 2020 received $ 216.394 million in EBITDA, which is 8% more than in the same period last year.
According to a press release of the company, based on the unaudited IFRS consolidated financial statements for the nine months of 2020, in January-September revenue fell by 23%, to $ 660 million, capital investments by 34%, to $ 27 million.
The press release emphasizes that the company’s net debt has reached a de-minimis level of $ 12 million with a net leverage ratio (net debt to EBITDA) that has dropped to almost zero (0.05x).
In the third quarter of 2020, the company’s revenue decreased by 12% compared to the previous quarter, to $ 192 million, EBITDA increased by 7%, to $ 67 million, the amount of capital investments increased by 12%, to $ 9 million.
“In Q3 2020 Interpipe operated in a quite challenging environment across all markets. The COVID-19 pandemic as well as oil and gas prices downturn led to the global decline in demand for pipes, particularly, OCTG products. Moreover, lockdowns and reduction of freight turnover hit global railway wheel market,” the report says.
“In the first nine months of 2020, Interpipe’s overall revenue declined by 23% y-o-y to $ 660 million primarily due to a decline in pipe sales volumes and prices. Revenue from pipes shrank by 35% y-o-y to $ 349 million whereas the railway product revenue decreased by 6% y-o-y to $ 216 million,” according to the document.
“Nevertheless, Interpipe managed to achieve а sound nine-month 2020 EBITDA which amounted to $ 216 million, up by 8% y-o-y. On the back of the COVID-19 pandemic and reinstatement of the anti-dumping duty in the Customs Union the railway product segment was the main contributor to the EBITDA growth: its pass-through EBITDA went up by 24% y-o-y to $ 161 million and comprised 75% of the total EBITDA for the nine months of 2020,” it said.
“At the same time, the pipe segment EBITDA for the first nine months of 2020 drastically dropped by 79% y-o-y to $ 10 million despite stable sales of linepipes and some recovery of OCTG in Q3 2020,” it said.
“As of September 30, 2020, gross debt went down substantially to $ 122 million following the partial redemption of the notes in amount of $ 97 million in August 2020. In addition, net debt achieved an unprecedently low level of $ 12 million bringing down consolidated net leverage ratio (net debt to EBITDA) almost to zero (0.05x),” the report says.
“Despite extremely harsh business environment in Q3 and the first nine months of 2020 Interpipe kept showing a solid financial performance. The company retrieved its full financial stability and flexibility having achieved effectively a zero net leverage. Our progress and substantially improved credit profile have been also appreciated and confirmed by international credit rating agencies – Fitch Ratings and S&P Global – assigning to Interpipe ‘B’ rating with stable outlook,” CEO at Interpipe Fadi Hraibi commented on the results.
The Ukrainian business of the Danish pig-breeding company Goodvalley, which assets are also located in Poland and Russia (formerly Danosha), in January-September 2020 saw EBITDA of DKK 125 million, which is 81.2% better than this indicator in January-September 2019.
Adjusted EBITDA rose by 76.5% to DKK 120 million, while revenues grew by 10.6%, to DKK 343 million, according to the company’s report last week.
The company said that in the third quarter of this year compared to the third quarter of last year, it managed to increase EBITDA 2.4 times, to DKK 34 million, adjusted EBITDA – by 80%, to DKK 27 million, but its revenue decreased 6.5%, to DKK 129 million.
According to the report, sales of pigs in live weight in the third quarter were stable, having decreased by 1.8% compared to the third quarter of last year, to 10,700 tonnes. The average realized price per kilogram decreased by 14.4% over the year as a result of the fall in the exchange rate, to DKK 11.37 from DKK 13.28.
Goodvalley clarified that 77% of the revenue of the Ukrainian segment came from sales of live pigs, and 23% from sales of grain crops and energy.
The share of the Ukrainian segment in the total revenue of the group was 34%, the Polish – 55%, the Russian – 11%, while the adjusted EBITDA was higher – 44% compared to 27% from the Polish business and 29% from the Russian one.
According to the report, in January-September of 2020, sales of pigs in live weight in the Ukrainian segment grew by 11.2% to 31,700 tonnes.
In general, Goodvalley’s revenue in the first nine months of this year increased 0.8%, to DKK 1130 million, EBITDA 6.7%, to DKK 224 million, and adjusted EBITDA increased 39.5%, to DKK 258 million.
In the third quarter of this year, the company’s revenue decreased 8.5%, to DKK 379 million, EBITDA 47.6%, to DKK 33 million, and adjusted EBITDA 18.3%, to DKK 58 million.
Goodvalley ended the first nine months of this year with a net loss of DKK 11 million versus DKK 120 million in net income in the first nine of last year, but adjusted profit rose 3.7 times, to DKK 95 million.
In the third quarter, the net loss amounted to DKK 50 million versus the net profit of DKK 26 million in the third quarter of last year, and the adjusted net profit fell by 83.3%, to DKK 3 million.
Goodvalley is engaged in pig farming in Ukraine, Poland and Russia. The group is also engaged in crop production, production of compound feed, biogas and electricity. It includes 34 farms and nine biogas plants. Goodvalley has a land bank of 38,300 hectares.
Goodvalley in 2019 increased its net profit to DKK 188 million from DKK 22 million in 2018. The company’s revenue rose 3.6% last year, to DKK 1.53 billion.
The mobile network operator Kyivstar has increased its total income by 11.6% in the third quarter of 2020 compared to the same period in 2019, to UAH 6.502 billion, the company’s press service said with reference to its quarterly report on Thursday.
According to the report, in the specified period, Kyivstar increased its earnings before interest, taxes, depreciation and amortization (EBITDA) by 16.9%, to UAH 4.411 billion, thereby increasing EBITDA margin by 3.1 percentage points (pp), to 67.8%.
Revenue from mobile services of the operator in the third quarter amounted to UAH 6.065 billion, which is 11% higher than in the same period in 2019.
Data traffic consumption increased by 50%, to 5.953 GB per subscriber. Consumption of voice services also increased – by 9.7% to 621 minutes per subscriber.
The number of Kyivstar mobile Internet users grew by 3.4%, to 16.8 million, and the total number of active subscribers by the end of the third quarter amounted to 25.8 million, which is 2.2% less than a year earlier.
The operator explained the decrease in the subscriber base relative to the third quarter of 2019 by the partial suspension of the retail network during quarantine.
According to the company, average revenue per user (ARPU) for mobile communications rose by 14.5%, to UAH 78.
“Forced social distancing during the quarantine period influenced the growth in demand for digital solutions. So, in the third quarter of 2020, the number of users of the My Kyivstar self-service system increased by 52% compared to the third quarter of 2019,” the operator said.
Revenues from fixed-line services grew by 19.9%, to UAH 399 million. At the same time, the number of subscribers increased 10%, to 1.1 million ARPU of fixed-line internet increased 9.7%, to UAH 81.
Capital investments for the reporting period amounted to UAH 1.185 billion, which is 13.5% less than in the same period last year.
In general, in January-September 2020, Kyivstar increased its revenue by 11.4%, to UAH 18.641 billion and EBITDA – by 17.6%, to UAH 12.527 billion, while the EBITDA margin increased by 3.6 pp, to 67.9%.
The operator’s capital investments (excluding license costs) for the first nine months of 2020 grew by 22.7%, to UAH 4.299 billion.
The EBITDA of Ukrtelecom (Kyiv) in January-June 2019 exceeded UAH 919 million, which is 10.8% more than a year ago, the largest Ukrainian fixed-line telephony operator has said.
According to the report, for the reporting period the total income of Ukrtelecom remained stable at the level of almost UAH 3.3 billion against UAH 3.249 billion for the same period last year, in particular income from telecommunications services amounted to UAH 2.755 billion.
Ukrtelecom notes that in January-June of this year it managed to increase revenue from Internet services by 8.2%, to more than UAH 880 million by continuing to deploy optics (plus 1,400 km since the beginning of the year) and connecting territorial communities to the Internet.
The company said that in the business segment, sales of Internet services increased by 8.6%, to UAH 184 million, and among private users by 8.1%, to UAH 698 million. According to the report, today the company offers Internet services in almost 2,300 locations in Ukraine.
Ukrtelecom said in the second quarter it launched a large project on laying more than 3,500 km of fiber-optic lines to provide nearly 300 small towns and villages with optical Internet.
Compared to the first half of 2018, revenues from fixed telephony decreased in the mass segment by 6.5%, in the corporate segment by 1.6%, and in general amounted to almost UAH 1.385 billion, which corresponds to the similar trend of decreasing voice services revenues from mobile operators.
