PrJSC Mariupol-based Illich Iron and Steel Works (Donetsk region), part of Metinvest Group, will allocate UAH 11.004 billion for the payment of dividends from retained earnings, Azovstal, also part of Group – UAH 7.718 billion, and PrJSC Dniprovsky Coke and Chemical Plant (Kamianske, Dnipropetrovsk region), part of Metinvest, – UAH 1.774 billion.
According to the official statements of the companies in the information disclosure system of the National Securities and Stock Market Commission, the sole shareholder of the three companies made decisions on the payment of dividends at the extraordinary shareholders’ meetings held on September 13, and on September 14 the companies decided to set the date for compiling the list of persons entitled to receive dividends – September 29, 2021.
Earlier it was reported about similar decisions of PrJSC Avdiyivka Coke and Chemical Plant on the direction of UAH 2.365 billion to dividends, and PrJSC Zaporizhkoks – UAH 3.867 billion.
Thus, a total of five Metinvest enterprises will allocate UAH 26.7 billion for dividend payments.
Revenue of Metinvest B.V. (Netherlands), the parent company of the Metinvest mining and metallurgical group, in June this year grew by 9.8%, or $153 million, compared to the previous month, to $1.722 billion from $1.569 billion.
According to the published preliminary unaudited consolidated monthly results of the company’s financial statements last week, total EBITDA in June was $931 million, which is $179 million, or 23.8%, higher than in May ($752 million). At the same time, EBITDA from participation in the joint venture amounted to $126 million (in May it was $147 million).
According to the report, the adjusted EBITDA of the metallurgical division of the group in June 2021 amounted to $401 million (in May it was $367 million), including $28 million from participation in the joint venture ($46 million); EBITDA of the mining division reached $650 million ($460 million), including $97 million ($101 million) from the joint venture. The management company spent $30 million ($5 million).
Total revenue in June consisted of $1.303 billion of the Metallurgical Division ($1.244 billion in May) and $713 million in the Mining Division ($583 million). Intragroup sales totaled $294 million ($258 million).
The total debt of Metinvest in June decreased by $466 million compared to May, to $2.459 billion from $2.925 billion. At the same time, the volume of funds increased by $204 million, to $1.443 billion from $1.239 billion.
Funds used in investment activities amounted to $37 million, in financial activities – $464 million.
Metinvest received $73 million from the resale of square billets (produced by DMK) in June in the amount of 102,000 tonnes. In addition, $225 million was received from the resale of 215,000 tonnes of flat products, $59 million from the resale of 68,000 tonnes of long products, and $53 million from the resale of 80,000 tonnes of pig iron.
In general, the company in June sold 440,000 tonnes of semi-finished products for $316 million, 814,000 tonnes of finished metal products for $849 million, and 162,000 tonnes of coke for $59 million.
In June, the Group sold 1.731 million tonnes of iron ore for $395 million, and 206,000 tonnes of coal concentrate for $29 million.
Metinvest, the largest Ukrainian mining and metallurgical holding, in January-June this year increased crude steel production by 10% compared to the same period last year, to 4.358 million tonnes, cast iron – by 8%, to 4.405 million tonnes, but reduced total coke production by 0.2%, to 2.368 million tonnes.
According to a press release of parent company Metinvest B.V. on the results of operation in H1 2021 published on Wednesday, In 2Q 2021, Metinvest’s hot metal output climbed by 5% q-o-q to 2.254 million tonnes. This was driven by growth in Azovstal’s production of 107,000 tonnes following brief maintenance and repair work on blast furnaces in March because of the planned overhaul of basic oxygen furnace (BOF) No. 1 that month.
In 2Q 2021, the Group’s crude steel output rose by 5% q-o-q to 2.229 million tonnes because of an increase in Azovstal’s volumes of 130,000 tonnes amid greater hot metal production at the plant. Meanwhile, Illich Steel’s output decreased by 30,000 tonnes because of the scheduled overhaul of BOF no. 3 in May.
In H1 2021 hot metal and steel output grew thanks to an increase in production at the two Mariupol-based works.
In 2Q 2021, the Group’s output of merchant semi-finished products dropped by 10% q-o-q to 687,000 tonnes. Merchant slab production fell by 91,000 tonnes because of the allocation of slabs to make more flat products. Meanwhile, pig iron output edged up by 13,000 tonnes.
In 1H 2021, Metinvest’s production of merchant semi-finished products decreased by 4% y-o-y to 1.452 million tonnes. Merchant slab production declined by 131,000 tonnes because of the redistribution of slabs to flat product rolling. Pig iron production rose by 66,000 tonnes, mainly because of an increase in hot metal output.
In 2Q 2021, the Group’s output of finished products climbed by 9% q-o-q to 1.819 million tonnes.
In 1H 2021, Metinvest’s production of finished products surged by 22% y-o-y to 3.481 million tonnes.
In 2Q 2021, the Group’s coke output totalled 1.198 million tonnes, up 2% q-o-q, mainly because of an increase in production at Avdiivka Coke following the overhaul of coke oven battery No. 6 in the beginning of this year. In 1H 2021, coke output remained flat y-o-y at 2.368 million tonnes. The effect of the consolidation of production volumes of Dnipro Coke since April 2020 (124,000 tonnes) was almost completely offset by decreases in production at Avdiivka Coke of 81,000 tonnes and Azovstal of 46,000 tonnes.
Metinvest Mining and Metallurgical Group through PrJSC Dniprovsky Coke and Chemical Plant (DKHZ, Kamianske, Dnipropetrovsk region), part of the group, will acquire an integral property complex of Dniprovsky Integrated Iron & Steel Works (DMK, Kamianske, Dnipropetrovsk region) for UAH 9.17 billion with a starting price of UAH 8.395 billion.
According to the information on the ProZorro.Sales platform, bids were accepted until July 25 inclusive, the auction was scheduled for July 26, but since one bid was submitted for the competition, the winner was determined without bidding.
Earlier, Interfax-Ukraine was informed that Metinvest would acquire DMK through its company, DKHZ.
DMK was undergoing reorganization as part of the bankruptcy proceedings of the enterprise.
Revenue of Metinvest B.V. (the Netherlands), the parent company of an international vertically integrated group of steel and mining companies Metinvest, in April this year increased by 12.9%, or $178 million, compared to the previous month, to $1.555 billion from $1.377 billion. According to the published preliminary unaudited consolidated monthly results of the company’s financial statements on Wednesday, total EBITDA in April was $650 million, which is $69 million, or 11.9% more than in March ($581 million). At the same time, EBITDA from participation in the joint venture amounted to $101 million (in March – $95 million).
According to the report, adjusted EBITDA of the metallurgical division of the group for April 2021 amounted to “plus” $313 million (in March – “plus” $233 million), including $34 million from participation in the joint venture ($13 million); EBITDA of the mining division – $399 million ($402 million), including from the joint venture – $66 million ($82 million). The management company spent $7 million ($7 million).
The total revenue in April consisted of the revenue of the metallurgical division in the amount of $1.189 billion (in March – $1.045 billion), and the mining division – $563 million ($513 million). Intragroup sales were $197 million ($182 million).
The total debt of Metinvest in April decreased by $101 million compared to March, to $3.172 billion from $3.273 billion, whiles cash and cash equivalents increased by $234 million, to $1.204 billion from $970 million.
Net cash used in investing activities amounted to $60 million, and in financing activities – $156 million.
Metinvest received $46 million from the resale of square billets produced by (Dniprovsky Iron and Steel Works of ISD Corporation) in April in the amount of 75,000 tonnes. In addition, $218 million were received from the resale of 272,000 tonnes of flat-rolled products, 80,000 tonnes of long products – $58 million, and 115,000 tonnes of cast iron – $70 million.
In general, the company in April sold 440,000 tonnes of semi-finished products for $277 million, 967,000 tonnes of finished metal products for $786 million, and 183,000 tonnes of coke for $58 million.
In April, the group sold 1.779 million tonnes of iron ore for $333 million, and 178,000 tonnes of coal concentrate for $22 million.
The main shareholders of Metinvest are SCM Group (71.24%) and Smart-Holding (23.76%), jointly managing the company.
Metinvest Holding LLC is the management company of Metinvest Group.