Q4 and 12m 2019 NLMK Group consolidated financial results under IFRS (video)

NLMK Group announced its Q4 and 12M 2019 financial results1. Q4 revenue amounted to $2,312 m, with an EBITDA margin of 21%. Free cash flow (FCF) in Q4 grew to $338 m (+36% qoq). NLMK Board of Directors recommended approving Q4 dividends in the amount of RUB 5.16/share (148% of FCF) in line with NLMK’s Dividend Policy.

12M 2019 key highlights

Revenue decreased by 12% yoy to $10.6 bn amid falling steel product prices and lower sales due to major repairs at NLMK Lipetsk BF and BOF operations.

EBITDA totalled $2.6 bn (-29% yoy) amid a decrease in revenue and narrower steel/raw material spreads. EBITDA margin was down to 24% (-6 p.p. yoy).

Free cash flow totalled $1.5 bn. The 25% decrease yoy is associated with the decrease in EBITDA and growth of capex as part of Strategy 2022 implementation.

Q4 2019 highlights

Revenue decreased by 10% qoq to $2.3 bn amid a decrease in average sales prices and an increase in the share of semi-finished products in the sales portfolio.

EBITDA decreased to $480 m (-27% qoq) due to an outstripping decrease in steel prices relative to raw materials. EBITDA margin decreased to 21% (-4 p.p. qoq).

Free cash flow grew to $338 m (+36% qoq) amid a decrease in stock prices and a set of working capital management measures.

rigory Fedorishin, NLMK Group CEO, presents 2019 consolidated financial results.