PrJSC Zaporizhkoks, one of the largest Ukrainian coke and chemical producers, part of Metinvest Group in January-February this year reduced production by 1.1% compared to the same period last year, to 140,100 tonnes.
According to the company, 66,100 tonnes of blast furnace coke were produced in February, while a month earlier – 74,000 tonnes.
As reported, Zaporizhkoks in 2020 increased production by 3.1% compared to the previous year, to 853,120 tonnes.
Zaporizhkoks produces about 10% of coke produced in Ukraine, owns a full technological cycle of processing coke-chemical products. In addition, it produces coke oven gas and pitch coke.
Metinvest is a vertically integrated group of mining companies. Its main shareholders are SCM Group (71.24%) and Smart-Holding (23.76%), jointly managing the company.
Metinvest Holding LLC is the managing company of Metinvest Group.
CUTS, METINVEST, METINVEST’S COMPANIES, OUTPUT, ZAPORIZHKOKS
The Metinvest Group, taking into account associated companies and joint ventures, transferred UAH 22.1 billion in taxes and fees to budgets of all levels in 2020, which is 5% higher than the level of the year before last.
According to a Friday press release of the company, the largest payment of the group’s total payments was income tax. Last year, Metinvest enterprises paid more than UAH 5.2 billion of this tax to the treasury, which is one third less than in 2019.
This is followed by a single social security contribution, the payment of which increased by 18% compared to 2019, to UAH 5.2 billion.
Metinvest enterprises last year transferred UAH 4.7 billion of personal income tax to the budgets, which is 17% more than in 2019.
In addition, the sources of receipts of the state and local budgets in 2020 were the payment for the use of subsoil in the amount of UAH 2.2 billion, the environmental tax of UAH 789 million and the land fee of UAH 713 million.
Central Mining and Processing Plant (Kryvy Rih, Dnipropetrovsk region), part of Metinvest Group, in 2020 reduced the production of merchant pellets by 5.4%, compared to the previous year to 2.27 million tonnes.
According to the audited consolidated financial results released by Metinvest on Tuesday, last year the output of iron ore concentrate at the plant increased by 10%, to 4.904 million tonnes.
Central Mining and Processing Plant is one of the five largest producers of mining raw materials in Ukraine. It specializes in extraction and production of iron ore raw materials – concentrate and pellets.
The plant is part of Metinvest Group, the main shareholders of which are PrJSC System Capital Management (SCM, Donetsk, 71.24%) and the Smart-Holding (23.76%).
Metinvest Group’s management company is Metinvest Holding LLC.
Inhulets Mining and Processing Plant (Kryvy Rih, Dnipropetrovsk region), part of Metinvest Group, in 2020 increased output of iron ore concentrate by 4% compared to 2019, to 12.858 million tonnes.
According to the audited consolidated financial results released by the company on Tuesday, work was carried out last year to modernize the transport infrastructure.
Completion of the construction of a new cyclical flow technology at Inhulets plant is planned in the second half of 2021.
The enterprise specializes in extraction and processing of ferruginous quartzites of Inhulets deposit, located in the southern part of the Kryvy Rih iron ore basin. It produces two types of iron ore concentrate with an iron content of 64.8% and 67%.
The production capacity is 14 million tonnes of iron ore concentrate per year.
Inhulets Mining and Processing Plant is part of Metinvest Group, the main shareholders of which are PrJSC System Capital Management (SCM, Donetsk, 71.24%) and the Smart-Holding (23.76%).
Metinvest Group’s management company is Metinvest Holding LLC.
Metinvest B.V. (the Netherlands), the parent company of the international vertically integrated mining and metallurgical group Metinvest, in 2020 reduced sales of products in Europe by 21% compared to the previous year, to $ 2.851 billion.
According to the audited consolidated financial results for 2020, sales in Europe fell mainly due lower sales prices for steel products. This was also affected by a decrease in sales of semi-finished products by 31% and iron ore products by 48%. As a result, the region’s share in total revenue decreased by 7 percentage points (p.p.) compared to the previous year, to 27%.
In 2020, revenue in Ukraine decreased by 7%, to $ 2.939 billion, mainly due to a decrease in the average price for metal products and coke, as well as a 26% reduction in pellet sales. The decrease in revenues was partially offset by an increase in the supply of long products by 23%, coke by 14% and iron ore concentrate by 43%. In general, the share of Ukraine in the consolidated revenue decreased by 1 p.p. compared to 2019, to 28%.
Revenue in the Middle East and North Africa region rose 9%, to $ 1.8 billion, mainly driven by an increase in slab (2.5 times) and flat products (12%) shipments. As a result, the region’s share in the consolidated revenue increased by 2 p.p., to 17%.
Revenue in Southeast Asia rose 56%, to $ 1.467 billion thanks to the resumption of sales by Metinvest to China amid strong demand in the country. During the reporting period, the group sold 862,000 tonnes of semi-finished products and finished metal products in the country. In addition, supplies of iron ore products to China increased 1.7 times. As a result, the market share of the region in total revenue increased by 5 p.p., to 14%.
Revenue in the CIS decreased by 23%, to $ 635 million due to a decrease in sales volumes and sales prices for flat products. The region’s share in the consolidated revenue decreased by 2 p.p., to 6%.
Metinvest B.V. (the Netherlands), the parent company of the Metinvest international vertically integrated mining and metallurgical group, in 2020 increased its net profit by 54% compared to 2019, to $ 526 million from $ 341 million with a 2 percentage point increase in margin (p.p.), to 5% from 3%.
According to the audited consolidated financial results for 2020, published by the company, its revenue decreased by 3%, to $ 10.453 billion, EBITDA increased by 82%, to $ 2.204 billion, with a margin increase of 10 p.p., up to 21% from 11%.
The company’s total debt for 2020 decreased by 3% compared to 2019, to $ 2.937 billion from $ 3.032 billion, while the amount of cash tripled to $ 826 million from $ 274 million.
Net debt decreased by 23%, to $ 2.111 billion from $ 2.758 billion.
Capital investments decreased by 37%, to $ 663 million from $ 1.055 billion.
“Last year, the COVID-19 pandemic brought much of the global economy to a standstill. I am proud to report that Metinvest again proved able to navigate profound market challenges. We achieved higher margins and carried out key investment projects. We also protected our employees and communities while making progress on our environmental, social and governance (ESG) agenda,” Yuriy Ryzhenkov, the Chief Executive Officer of Metinvest, said commenting on the results.
“Our number one priority as the pandemic emerged was to safeguard our employees and local communities. We took firm and immediate steps, implementing enhanced health protocols at all assets and switching administrative staff to work remotely. We also supplied test kits and oxygen equipment to local healthcare institutions,” he said.
“After ensuring the safety of our people, the next task in our COVID-19 response was to maintain uninterrupted production across our assets. We ultimately delivered strong operational results, reflecting the positive effect of investments implemented in recent years,” he noted.
“Anticipating a difficult external environment, the group took the decision to reduce CAPEX in 2020, while maintaining it at a decent level. Key projects completed include launching the new down coiler at Illich Steel Mill’s modernized hot strip mill and upgrading the beneficiation facilities at Central GOK. We are carrying out a planned review of the Technological Strategy 2030 to ensure that projects bring maximum benefits,” he added.
“At the same time, Metinvest’s focus on operational improvements to ensure global cost competitiveness yielded a total effect of $ 376 million in 2020. We increased the efficiency of raw material and energy consumption, improved equipment productivity, streamlined logistics, enhanced the product mix and more,” the director said.
