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Mechel reports 2019 operational and financial results

Mechel reports 2019 operational and financial results

Moscow, March 19 – Neftegaz.RU. Mechel is an international mining and steel company. Its products are marketed in Europe, Asia, North and South America, Africa. The comapny unites producers of coal, iron ore concentrate, steel, rolled products, ferroalloys, heat and electric power. All of its enterprises work in a single production chain, from raw materials to high value-added products.  Mechel announced today its 2019 operational and financial  results.

The company´s consolidated revenue – 296.6 bln rubles (-5% compared to FY2018). EBITDA – 53.4 bln rubles (-29% compared to FY2018). Profit attributable to equity shareholders of Mechel PAO – 2.4 bln rubles

Mechel’s CEO Oleg Korzhov commented on operational results. “For us, 2019 became a year of major equipment reconstruction projects in our steel segment and restoring the equipment pool in our mining division. We have seen results of this effort at Southern Kuzbass Coal Company as early as the end of last year — starting in October, the company reached a monthly output level of 1 million tonnes and demonstrated a confident growth of all key results, with mining volumes up by 25%. Korshunov Mining Plant improved its annual output by 30%. In the steel segment, we completed a large-scale reconstruction of one of our 3 blast furnaces and one of 3 converters. This will increase these facilities’ output by 15% and thus our overall steel output in 2020."

As for Mechel’s sales, in 2019 the company decreased sales to China by a quarter, redistributing them in favor of Japan’s market which is more profitable. In 2020, the coal market is still volatile, and considering the coronavirus situation, may remain so for several months yet.

Coking coal concentrate sales in 2019 remained largely at the previous year’s level. 29% of our overall coking coal concentrate sales went to Japan, 27% to China and 24% to Russian customers. PCI sales went up by 15% primarily due to increased export to South Korea.

Coke sales to 3rd parties went up by 36% as stockpiles freed due to repairs at Chelyabinsk Metallurgical Plant’s blast furnace #4 were sold to export, including Turkey and India.