Consolidated revenue of Metinvest B.V. (the Netherlands), the parent company of the international vertically integrated mining and metallurgical group Metinvest, in January-March this year increased by 43% compared to the same period last year, to $3.624 billion.
According to the published preliminary unaudited consolidated results of the company’s financial statements, adjusted EBITDA for the first quarter was $1.462 million, which is 3.92 times higher than in the same period last year ($373 million). The margin was 40% (15% in Q1, 2020).
It is noted that Metinvest’s consolidated revenues rose by 43% which is driven primarily by higher selling prices of steel and iron ore products in line with global benchmarks. In addition, the Group increased sales volumes of flat products by 6% y-o-y, as a result of a recovery in demand in several strategic markets for the Group, as well as recently implemented investments.
Metinvest also boosted pellet shipments by 34% y-o-y, amid higher pellet premiums globally.
During the reporting period, revenues in Ukraine increased by 30% y-o-y, to $947 million. This was mainly due to higher average selling prices of steel and iron ore products, as well as higher sales volumes of iron ore products (up 17%) and coke (up 18%). The share of Ukraine in consolidated revenues edged down by 3 percentage points (p.p.) y-o-y, to 26%.
Sales to other markets increased by 48% y-o-y, to $2.677 million in the first quarter of 2021, accounting for 74% of total revenues. Sales to Europe surged by 54% y-o-y, primarily amid higher steel and iron ore selling prices. In addition, sales volumes of cast iron, flat products and pellets rose by 32%, 28% and 51%, respectively. As a result, the region’s share in overall revenues increased by 3 p.p. y-o-y, to 35%.
Revenues from the Middle East and North Africa (MENA) region rose by 48% y-o-y, mainly amid higher steel selling prices, as well as greater shipments of pig iron (up 29%), slabs (up 73%) and flat products (up 4%). The region’s share in consolidated revenues remained unchanged at 18%.
Sales to Southeast Asia increased by 9% y-o-y, amid higher iron ore selling prices despite practically no shipments of semi-finished and finished steel products to the region. Southeast Asia’s share in consolidated revenues declined by 2 p.p. y-o-y, to 8%.
Revenues from the CIS rose by 20% y-o-y, primarily as a result of higher selling prices for flat products. Meanwhile, the region’s share in consolidated revenues declined by 1 p.p. y-o-y, to 5%.
In the first quarter of this year, consolidated EBITDA was $1.462 billion, which is 3.9 times higher compared to the same period last year. This was primarily driven by an increase in the Mining segment’s contribution of $676 million and in the Metallurgical segment’s contribution of $494 million. In addition, corporate overheads decreased by $2 million, while eliminations increased by $83 million.
The increase in consolidated EBITDA was primarily attributable to higher average selling prices for steel and iron ore products, the effect of which on sales of Metinvest’s goods totaled $778 million. Higher prices also improved earnings from resales (up by $23 million) and the contribution of both joint ventures (up by $216 million).
In the first quarter of this year, the Group’s consolidated EBITDA margin increased by 25 p.p. y-o-y, to 40%. The Metallurgical segment’s EBITDA margin rose by 16 p.p. y-o-y, to 24%, while that of the Mining segment climbed by 38 p.p. y-o-y, to 75%.
EBITDA, METALLURGICAL GROUP, METINVEST
