LONDON (ShareCast) - (Sharecast News) - Evraz reported total segment revenues of $14.16bn in its annual results on Friday, growing from $9.75bn year-on-year, as total segment EBITDA rose to $5.02bn from $2.21bn.
The FTSE 100 Russian steelmaker said that it boosted its EBITDA margin to 35.4% for the year ended 31 December, from 22.7%.

Free cash flow increased to $2.26bn from $1.02bn, while the company's net profit increased to $3.11bn from $858m in 2020.

Evraz said its net debt was "significantly" reduced to $2.67bn from $3.36bn, as its net debt-to-last 12 months EBITDA ratio went down to 0.5x as at 31 December, from 1.5x a year earlier/

The board said the total EBITDA effect from cost-cutting and its customer focus initiatives was $590m in 2021.

Looking at its costs, Evraz reported that the cash cost of slabs increased to $308 per tonne from $213 in 2020, due to higher raw material prices for iron ore, coal, ferroalloys, and increased auxiliary, services and repairs costs.

Cash costs for coal concentrate increased to $41 per tonne from $31, mainly as a result of the rise of mining costs, while cash costs of iron ore products increased to $42 per tonne from $36, which the firm said was mainly driven by higher fixed costs as inflationary pressure intensified.

The board declared an interim dividend of $729m, or 50 US cents per share, which the directors said reflected their confidence in the group's financial position and outlook.

Evraz added that the demerger of its coal business was expected to complete in late March, adding that it was expected Raspadskaya would announce a dividend according to its guidance in its financial statements for 2021.

"In 2021, the steel industry was mostly driven by demand-side fluctuations," said chief executive officer Aleksey Ivanov.

"Steelmakers increased output in anticipation of more robust demand from the construction and manufacturing sectors.

"Unable to keep up with the accelerated pace of recovery, steel prices rose to their highest in years."

Ivanov said that amid the upswing on global markets, Evraz delivered "outstanding" financial results, and continued to implement its efficiency improvement programme.

"In the reporting period, we announced the demerger of Raspadskaya, our coal business, a process currently expected to complete in late March 2022.

"In our view, the demerger will establish a clear and focused equity story for both companies and provide greater flexibility to execute dedicated strategy for each.

"In 2022, we will press ahead with further improving our ESG performance and strengthening our culture of continuous operational improvement."

Aleksey Ivanov said he "strongly believes" in the firm's long-term success, given the commitment of its employees.

"We are conscious of the current geopolitical circumstances," Ivanov added, referring to Russia's bloody invasion of Ukraine on Thursday.

"We continue to monitor the situation and will keep you updated regarding any material developments that can influence our business."

At 0934 GMT, shares in Evraz were up 21.23% at 207.98p.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE