Russian mining and steel producing company Evraz Group has announced its financial results for 2019.
In 2019, Evraz registered a consolidated sales revenue of $11.9 billion, falling by 7.3 percent compared with $12.84 million in 2018, driven by decreasing vanadium and coal product sales prices amid less favourable market trends. In the same period, the group registered a net profit of $365 million, decreasing by 85.2 percent compared to the previous year.
The consolidated EBITDA of Evraz for the full year was $2.6 billion, down by 31.1 percent year on year, due to a decline in sales prices of vanadium and coal products and increasing raw material expenses especially for iron ore. EBITDA margin fell to 21.8 percent in 2019, from 29.4 in 2018.
In the given year, Evraz’s capital expenditure spent on maintenance and development projects increased to $762 million, up by 44.6 percent year on year. The increase was driven by maintenance expenses which rose by 61 percent, mainly due to the execution of a major overhaul of blast furnace No. 6 at EVRAZ NTMK.
Evraz’s total annual capital expenditures are expected to be on average $1.0 billion in the period from 2020 to 2023 within the scope of the investment program announced in 2019 and $335 million of this yearly amount will be spent on three major development projects which are the new long rail mill in Colorado, the rail and beam mill modernisation at EVRAZ NTMK and the construction of a 2.5 million mt integrated flat casting and rolling facility at EVRAZ ZSMK.
As for 2020, the company said that it is going to maintain its efforts regarding improving safety and other vitally important areas of sustainable development, and also plans to focus more on climate-related risks. Evraz aims to receive solid results in spite of the possible challenges in the market with its production goals set by the company for this year.