EVRAZ plc today releases its operational results for the third quarter of 2013.
Q3 2013 OPERATIONAL HIGHLIGHTS and RECENT DEVELOPMENTS:
Consolidated crude steel production was down by 3% in Q3 2013 vs. Q2 2013 due to lower output across all assets as a result of scheduled maintenance works in Russia, idling of the steelmaking shop in the Czech Republic, and operational issues in South Africa
Output of steel products, net of re-rolled volumes was broadly flat and supported by the seasonally strong demand for construction products in Russia, strong order book for tubular products in North America and growth of output of rails in Russia
Share of finished steel products amounted to 75% in Q3 2013 vs. 77% in Q2 2013 due to suspension of operations at certain mills, as described below
Output of iron ore products decreased by 1% in Q3 2013; EVRAZ VGOK was disposed of as part of our operational efficiency programme
Consolidated raw coking coal output increased by 11% driven by the strong performance of both Yuzhkuzbassugol’s and Raspadskaya’s mines
Average selling prices for most key steel product groups continued to be impacted by the downward trends in the global steel market
Prices for iron ore products and coking coal in Q3 2013 decreased in line with global benchmarks
Our focus on large scale and low cost operations supporting efficient vertical integration resulted in the sale of VGOK iron ore mining and processing plant and the Gramoteinskaya steam coal mine; both transactions closed in October 2013
In the current challenging market conditions EVRAZ decided to suspend operations at the Claymont mill in the USA, at EVRAZ Palini e Bertoli in Italy, while the steel shop at EVRAZ Vitkovice Steel in the Czech Republic was operational for less than a month in Q3 2013
EVRAZ shut down the plate rolling mill at EVRAZ ZSMK due to the low profitability of its products in the current market environment
In Q3 2013, preliminary capital expenditure totalled US$227 million, including US$118 million on investment projects, compared with US$270 million in Q3 2012. The company reiterates the outlook for capital expenditure for 2013 of US$900-1,000 million
There has been no material change to company’s balance sheet since the last reporting date.