TIDMEVR
RNS Number : 3208Q
Evraz Plc
25 February 2021
EVRAZ plc
EVRAZ PUBLISHES 2020 ANNUAL REPORT AND REPORTS FULL YEAR 2020
RESULTS
25 February 20 21 - EVRAZ plc ("EVRAZ" or "the Company") (LSE: EVR) has today:
-- posted its Annual Report for the year ended 31 December 20 20
("20 20 Annual Report") on its website:
https://www.evraz.com/en/investors/reports-and-results/annual-reports/ and
-- submitted to the UK National Storage Mechanism a copy of its
20 20 Annual Report in accordance with LR 9.6.1 R.
The 20 20 Annual Report will shortly be available for inspection
on the National Storage Mechanism
https://data.fca.org.uk/#/nsm/nationalstoragemechanism
The 20 20 Annual Report and the Notice of the Company's Annual
General Meeting, which will be held on 1 5 June 202 1 and will be
posted to shareholders in mid-May 20 21 .
The Appendix to this announcement contains additional
information which has been extracted from the 2020 Annual Report
for the purposes of compliance with DTR 6.3.5 only and should be
read in conjunction with this announcement. Together these
constitute the material required by DTR 6.3.5 and DTR 4.2.3 to be
communicated to the media in unedited full text through a
Regulatory Information Service. This announcement should be read in
conjunction with and is not a substitute for reading the full 2020
Annual Report. Page and note references in the text below refer to
page numbers and notes in the 2020 Annual Report.
EVRAZ ANNOUNCES ITS AUDITED RESULTS FOR THE YEARED 31 DECEMBER
2020
The financial information contained in this document does not
constitute statutory accounts as defined by section 435 of the
Companies Act 2006. Financial information for 2019 has been
extracted from the audited statutory accounts for the year ended 31
December 2019 which were prepared in accordance with IFRS as
adopted by the European Union and have been delivered to the
Registrar of Companies. The auditor's report on those financial
statements was unqualified with no reference to matters to which
the auditor drew attention by way of emphasis and no statement
under s498(2) or s498(3) of the Companies Act 2006. The financial
information for the year ended 31 December 2020 will be delivered
to the Registrar of Companies following the Company's annual
general meeting convened for 15 June 2021. The auditor has reported
on the statutory accounts for the year ended 31 December 2020. The
auditor's report was unqualified.
FY 2020 HIGHLIGHTS
-- Robust free cash flow of US$1,020 million (FY2019: US$1,456 million)
-- Continued reduction in net debt: US$3,356 million (FY2019: US$3,445 million)
-- Total EBITDA effect from cost-cutting and customer focus
initiatives of US$ 426 million in 2020
-- Consolidated EBITDA of US$2,212 million, down 15.0% from
US$2,601 million in FY201 9 , EBITDA margin up to 22.7% from 21
.8%
-- Net profit increased to US$858 million vs. US$365 million in FY2019
-- Cash-costs:
o cash cost of slabs decreased to US$213/t from US$236/t in
FY2019 due to lower raw material prices (iron ore, coal,
ferroalloys), better raw material yield and mix, lower auxiliary,
services and repairs costs
o cash costs of coal concentrate decreased to US$31/t (FY2019:
US$35/t) mainly as a result of rouble depreciation
o cash costs of iron ore products decreased to US$36/t (FY2019:
US$41/t) mainly by rouble depreciation, higher iron ore production
volume and lower fixed costs
-- An interim dividend of US$437.1 million (US$0.3 0 per share)
has been declared, reflecting the Board's confidence in the Group's
financial position and outlook.
Financial Highlights
(US$ million) FY20 20 FY2019 Change,%
------------------------------------------ ------------------ ------------------ ---------
Consolidated revenue 9 , 754 11,905 (18.1)
------------------------------------------ ------------------ ------------------ ---------
Profit from operations 1,671 1,217 37.3
------------------------------------------ ------------------ ------------------ ---------
Consolidated EBITDA(1) 2, 212 2,601 (15.0)
------------------------------------------ ------------------ ------------------ ---------
Net profit 858 365 n/a
------------------------------------------ ------------------ ------------------ ---------
Earnings per share, basic (US$) 0.58 0.2 3 n/a
------------------------------------------ ------------------ ------------------ ---------
Net cash flows from operating activities 1 , 928 2,430 (20.7)
------------------------------------------ ------------------ ------------------ ---------
CAPEX(2) 657 762 (13.8)
------------------------------------------ ------------------ ------------------ ---------
31 December 20 20 31 December 201 9
------------------------------------------ ------------------ ------------------ ---------
Net debt(3) 3, 356 3,445 (2.6)
------------------------------------------ ------------------ ------------------ ---------
Total assets 8,710 9,847 (11.5)
------------------------------------------ ------------------ ------------------ ---------
(1) See p.253 of EVRAZ plc Annual Report 2020 for the definition
of EBITDA.
(2) Including payments on deferred terms recognised in financing
activities and non-cash transactions.
(3) See p.254 of EVRAZ plc Annual Report 2020 for the
calculation of net debt.
EVRAZ Chief Executive Officer, Alexander Frolov, commented
"2020 was an unprecedented year, which changed the world and the
way we do business. Intense global uncertainty caused by the
outbreak of COVID-19 had a profound e ect on economies and
pressured global markets. However, thanks to the upswing seen on
the global markets in the second half of the year, the Group
delivered solid operating and financial results with EBITDA
reaching US$2, 212 million and EBITDA margin reached 22 .7 % in
2020 .
Moreover, EVRAZ continued to implement its efficiency
improvement programme and delivered an EBITDA e ect of
US$426 million from customer focus and cost-cutting initiatives.
In 2021, EVRAZ will continue to improve its safety culture,
customer focus and operational efficiency, using digital tools
where appropriate. The Group aims to achieve significant progress
in its key investment projects, the foremost of which is to upgrade
the rail mills in North America and Nizhny Tagil. EVRAZ will also
focus on making the best possible use of the opportunities that
arise as the markets begin to recover from the pandemic in
2021."
CONFERENCE CALL
EVRAZ plc (LSE: EVR) has released its financial results for the
year ended 31 December 2020 on Thursday, 25 February 2021.
A conference call to discuss the results, hosted by Alexander
Frolov, CEO, and Nikolay Ivanov, CFO, will be held on Thursday, 25
February 20 21 , at:
2 pm (London time)
5 pm (Moscow time)
9 am (New York time)
To join the call, please dial:
+44 (0)330 336 9127 or 0800 358 6377 UK
(toll free)
++7 495 213 1767 or 8 800 500 9283 Russia
(toll free)
+1 929-477-0448 or 888-204-4368 (toll US
free)
Conference ID: 9126275
To avoid any technical inconvenience, it is recommended that
participants dial in 10 minutes before the start of the call.
An audio webcast will be available at the following link
(pre-registration needed):
https://www.webcast-eqs.com/evraz20210225
The FY2020 results presentation will be also available on the
Group's website, www.evraz.com , on Thursday, 25 February 20 21 ,
at the following link:
https://www.evraz.com/en/investors/reports-and-results/financial-results/
An MP3 recording will be available on Friday, 26 February 2021, at the following link:
https://www.evraz.com/en/investors/reports-and-results/financial-results/
FORWARD-LOOKING STATEMENTS
This document contains "forward-looking statements", which
include all statements other than statements of historical facts,
including, without limitation, any statements preceded by, followed
by or that include the words "targets", "believes", "expects",
"aims", "intends", "will", "may", "anticipates", "would", "could"
or similar expressions or the negative thereof. Such
forward-looking statements involve known and unknown risks,
uncertainties and other important factors beyond the Group's
control that could cause the actual results, performance or
achievements of the Group to be materially different from future
results, performance or achievements expressed or implied by such
forward-looking, including, among others, the achievement of
anticipated levels of profitability, growth, cost and synergy of
recent acquisitions, the impact of competitive pricing, the ability
to obtain necessary regulatory approvals and licenses, the impact
of developments in the Russian economic, political and legal
environment, volatility in stock markets or in the price of the
Group's shares or GDRs, financial risk management and the impact of
general business and global economic conditions. Such
forward-looking statements are based on numerous assumptions
regarding the Group's present and future business strategies and
the environment in which the Group will operate in the future. By
their nature, forward-looking statements involve risks and
uncertainties because they relate to events and depend on
circumstances that may or may not occur in the future. These
forward-looking statements speak only as at the date as of
which
they are made, and each of EVRAZ and the Group expressly
disclaims any obligation or undertaking to disseminate any updates
or revisions to any forward-looking statements contained herein to
reflect any change in EVRAZ's or the Group's expectations with
regard thereto or any change in events, conditions or circumstances
on which any such statements are based. Neither the Group, nor any
of its agents, employees or advisors intends or has any duty or
obligation to supplement, amend, update or revise any of the
forward-looking statements contained in this document.
Table of contents
Financial review
Statement of operations
CAPEX and key projects
Financing and liquidity
Review of operations by Segment
Steel segment
Steel, North America segment
Coal segment
APPIX
Key RISKS AND UNCERTAINTIES
DIVIDS
DIRECTORS' RESPONSIBILITY STATEMENT
onsolidated statement of operations
onsolidated statement of comprehensive income
onsolidated statement of financial position ..
onsolidated statement of cash flows
onsolidated statement of changes in equity ..
Financial review
Statement of operations
In its full-year financial results for 2020, EVRAZ reported an
18.1% year-on-year decrease in consolidated revenues, which
totalled US$9,754 million, compared with US$11,905 million in 2019.
The reduction was primarily the result of a drop in sales prices
for steel, vanadium and coal products against a background of
less favourable market trends .
EVRAZ' consolidated EBITDA amounted to US$2,212 million in the
period, compared with US$2,601 million in 2019, with the EBITDA
margin rising to 22.7%, from 21.8%, and free cash ow amounting to
US$1,020 million in 2020. The decline in EBITDA was primarily
attributable to lower steel, vanadium and coal product sales
prices, as well as lower sales of tubular and at-rolled steel
products resulting from weakening market
demand in North America .
The Steel segment's revenues (including intersegment) dropped by
14.4% year-on-year to US$6,969 million, or 65.4% of the Group's
total before elimination. The decrease was mainly due to lower
revenues from sales of vanadium and steel products, which fell by
46.0% and 8.4% year-on-year respectively. This was primarily due to
a downturn in average sales prices of 42.7% for vanadium and 9.4%
for steel products, underpinned by unfavourable market conditions.
The Group's lower prices from sales of steel products were partly o
set by higher sales volumes, which increased from 11.0 million
tonnes in 2019 to 12.1 million tonnes in 2020,
following an increase in production volumes at Russian mills amid higher demand.
The Steel, North America segment's revenues decreased by 28.8%
year-on-year. Steel product revenues fell by
29.2%, driven by declining sales volumes (down 21.7%) and lower prices (down 7.5%).
The Coal segment's revenues fell by 26.3% year-on-year, due to a
35.1% decline in coal product sales prices which was partly o set
by a 9.6% increase in coal product sales volumes. Coal prices
followed the downward
trend set by global benchmarks during the period .
In 2020, the Steel segment's EBITDA rose amid lower expenses
compared to revenue, as a result of a decline in prices for raw
materials, including coal, scrap and other raw materials, and
exchange rate impact on rouble denominated costs.
The Steel, North America segment's EBITDA decreased due to lower
revenues from sales of at-rolled, tubular,
railway, and construction products.
The Coal segment's EBITDA was down, amid lower coal product
sales prices, while the cost of sales was largely unchanged.
Eliminations mainly re ect unrealised profits or losses that
relate to the inventories produced by the Steel segment on the
Steel, North America segment's balance sheet, and coal inventories
produced by the Coal
segment on the Steel segment's balance sheet .
Revenues
(US$ million)
----------------------------------------------------------------
Segment 20 20 2019 Change Change, %
---------------------- -------- -------- -------- ----------
Steel 6 , 969 8,143 (1,174) (14.4)
---------------------- -------- -------- -------- ----------
Steel, North America 1 , 779 2,500 (721) (28.8)
---------------------- -------- -------- -------- ----------
Coal 1 , 490 2,021 (531) (26.3)
---------------------- -------- -------- -------- ----------
Other operations 410 483 (73) (15.1)
---------------------- -------- -------- -------- ----------
Eliminations (894) (1,242) 348 (28.0)
---------------------- -------- -------- -------- ----------
Total 9 , 754 11,905 (2,151) (18.1)
---------------------- -------- -------- -------- ----------
Revenues by region
(US$ million)
---------------------------------------------------------------------------
Region 20 20 201 9 Change Change, %
---------------------------------- -------- ------- -------- ----------
Russia 3 , 722 4,373 (651) (14.9)
----------------------------------
Asia 2,949 2,893 56 1.9
----------------------------------
Americas 1,915 2,709 (794) (29.3)
----------------------------------
CIS (excl. Russia) 584 865 (281) (32.5)
----------------------------------
Europe 461 956 (495) (51.8)
----------------------------------
Africa and the rest of the world 123 109 14 12.8
---------------------------------- -------- ------- -------- ----------
Total 9,754 11,905 (2,151) (18.1)
---------------------------------- -------- ------- -------- ----------
EBITDA*
(US$ million)
-----------------------------------------------------------
Segment 2020 2019 Change Change, %
---------------------- ------ ------ ------- ----------
Steel 1,930 1,795 135 7.5
---------------------- ------ ------ ------- ----------
Steel, North America (28) 38 (66) n/a
---------------------- ------ ------ ------- ----------
Coal 400 843 (443) (52.6)
---------------------- ------ ------ ------- ----------
Other operations 15 18 (3) (16.7)
---------------------- ------ ------ ------- ----------
Unallocated (126) (141) 15 (10.6)
---------------------- ------ ------ ------- ----------
Eliminations 21 48 (27) (56.3)
---------------------- ------ ------ ------- ----------
Total 2,212 2,601 (389) (15.0)
---------------------- ------ ------ ------- ----------
* For the definition of EBITDA, please refer to p. 253 of the
Annual Report 2020
The following table details the effect of the Group's
cost-cutting initiatives.
Effect of Group's cost-cutting initiatives in
2020,
(US$ million)
----------------------------------------------------------- ---------
Improving yields and raw material costs, including 102
----------------------------------------------------------- ---------
Various improvements at coal washing plants and
mines 60
----------------------------------------------------------- ---------
Auxiliary materials and service costs of Urals
and Siberia operations 28
----------------------------------------------------------- ---------
Auxiliary materials and service costs of North
American and Vanadium operations 14
----------------------------------------------------------- ---------
Increasing productivity and cost effectiveness 40
----------------------------------------------------------- ---------
Others, including 50
----------------------------------------------------------- ---------
Reduction of general and administrative (G&A)
costs and non-G&A headcount 49
----------------------------------------------------------- ---------
Assets optimisation 1
----------------------------------------------------------- ---------
Total 192
----------------------------------------------------------- ---------
Revenues, cost of revenues and gross profit of
segments
(US$ million)
--------------------------------------------------------------------- -------
2020 2019 Change Change, %
--------------------------- -------- -------- -------- ------------------
Steel segment
--------------------------- -------- -------- -------- ------------------
Revenues 6,969 8,143 1,174 14.4
--------------------------- -------- -------- -------- ------------------
Cost of revenues (4,596) (5,836) (1,240) (21.2)
--------------------------- -------- -------- -------- ------------------
Gross profit 2,373 2,307 66 2.9
--------------------------- -------- -------- -------- ------------------
Steel, North America
segment
--------------------------- -------- -------- -------- ------------------
Revenues 1,779 2,500 (721) (28.8)
--------------------------- -------- -------- -------- ------------------
Cost of revenues (1,604) (2,204) 600 (27.2)
--------------------------- -------- -------- -------- ------------------
Gross profit 175 296 (121) (40.9)
--------------------------- -------- -------- -------- ------------------
Coal segment
--------------------------- -------- -------- -------- ------------------
Revenues 1,490 2,021 (531) (26.3)
--------------------------- -------- -------- -------- ------------------
Cost of revenues (1,027) (1,046) (20) (1.9)
--------------------------- -------- -------- -------- ------------------
Gross profit 463 975 (512) (52.5)
--------------------------- -------- -------- -------- ------------------
Other operations - gross
profit 115 116 (1) (1.0)
--------------------------- -------- -------- -------- ------------------
Unallocated - gross
profit (8) (4) 4 n/a
--------------------------- -------- -------- -------- ------------------
Eliminations - gross
profit (76) (58) 18 (31.0)
--------------------------- -------- -------- -------- ------------------
Total 3,042 3,632 (590) (16.2)
--------------------------- -------- -------- -------- ------------------
Gross profit, expenses and results
----------------------------------------------------------------- -------- -------- ------- ----------
(US$ million)
----------------------------------------------------------------- -------- -------- ------- ----------
2020 2019 Change Change, %
----------------------------------------------------------------- -------- -------- ------- ----------
Gross profit 3,042 3 , 632 (590 ) (16.2 )
----------------------------------------------------------------- -------- -------- ------- ----------
Selling and distribution costs (840 ) (966 ) 126 (13.0 )
----------------------------------------------------------------- -------- -------- ------- ----------
General and administrative expenses (552 ) (611 ) 59 (9.7 )
----------------------------------------------------------------- -------- -------- ------- ----------
Social and social infrastructure maintenance expenses (31 ) (26 ) (5 ) 19.2
----------------------------------------------------------------- -------- -------- ------- ----------
Gain/(loss) on disposal of property, plant and equipment, net (3 ) 3 (6 ) n/a
----------------------------------------------------------------- -------- -------- ------- ----------
Impairment of assets (310 ) (442 ) 132 (29.9 )
----------------------------------------------------------------- -------- -------- ------- ----------
Foreign exchange gains/(losses), net 408 (341 ) 749 n/a
----------------------------------------------------------------- -------- -------- ------- ----------
Other operating income and expenses, net (43 ) (32 ) (11 ) 34.4
----------------------------------------------------------------- -------- -------- ------- ----------
Profit from operations 1 , 671 1 , 217 454 37.3
----------------------------------------------------------------- -------- -------- ------- ----------
Interest expense, net (322 ) (328 ) 6 (1.8 )
----------------------------------------------------------------- -------- -------- ------- ----------
Share of profits/(losses) of joint ventures and associates 2 9 (7 ) (77.8 )
----------------------------------------------------------------- -------- -------- ------- ----------
Impairment of non-current financial assets - (56) (56) n/a
----------------------------------------------------------------- -------- -------- ------- ----------
Gain/(loss) on financial assets and liabilities, net (71 ) 17 (88 ) n/a
----------------------------------------------------------------- -------- -------- ------- ----------
Gain/(loss) on disposal groups classified as held for sale, net 1 29 (28 ) (96.6 )
----------------------------------------------------------------- -------- -------- ------- ----------
Other non-operating losses, net 14 14 - -
----------------------------------------------------------------- -------- -------- ------- ----------
Profit before tax 1 , 295 902 393 43.6
----------------------------------------------------------------- -------- -------- ------- ----------
Income tax expense (437 ) (537 ) 100 (18.6 )
----------------------------------------------------------------- -------- -------- ------- ----------
Net profit 858 365 493 n/a
----------------------------------------------------------------- -------- -------- ------- ----------
In 2020, selling and distribution expenses fell by 13.0%, amid
lower railroad transportation costs related to lower shipment
volumes and tari s. General and administrative expenses fell by
9.7%, mostly due to a furlough in the May-July period and sta
reductions in North America caused by weak market conditions and
idling.
In 2020, EVRAZ recognised a US$310 million impairment loss. As a
result of impairment testing, in 2020, the Group recognised a
US$234 million impairment loss with respect to the Large diameter
pipes cash-generating unit, which was allocated to goodwill (US$65
million), intangible assets (US$16 million) and property, plant and
equipment (US$153 million) and a US$67 million impairment loss with
respect to the Oil Country Tubular Goods cash-generating unit,
which was allocated to goodwill. The impairment was caused by the
reassessment
of demand on the steel, oil and commodities markets in the USA and Canada.
Foreign exchange gains amounted to US$408 million, mainly
related to intragroup loans denominated in roubles and payable by
subsidiaries, whose functional currency is the US dollar, to the
Russian subsidiaries, which have the rouble as their functional
currency. The depreciation of the Russian rouble against the US
dollar in 2020 led to exchange gains recognised in the income
statements of non-Russian subsidiaries.
The loss on financial assets and liabilities amounted to US$71
million and consisted primarily of losses on foreign currency swap
contracts.
For the reporting period, the Group had an income tax expense of
US$437 million, compared with US$537 million in 2019. The change re
ects the decline in the operating results.
Cash flow
(US$ million)
----------------------------------------------------------------------------------------------------------------------
2020 2019 Change Change, %
--------------------------------------------------------------------------- -------- -------- -------- -----------
Cash flows from operating activities before changes in working capital 1,5 93 2,057 (46 4 ) (2 2 . 6 )
--------------------------------------------------------------------------- -------- -------- -------- -----------
Changes in working capital 3 35 373 ( 38 ) ( 10 . 2 )
--------------------------------------------------------------------------- -------- -------- -------- -----------
Net cash flows from operating activities 1,9 28 2,430 ( 502 ) (20. 7 )
--------------------------------------------------------------------------- -------- -------- -------- -----------
Short-term deposits at banks, including interest 4 7 (3) (42.9)
--------------------------------------------------------------------------- -------- -------- -------- -----------
Purchases of property, plant and equipment and intangible assets (6 47 ) (762) 1 15 (1 5 . 1 )
--------------------------------------------------------------------------- -------- -------- -------- -----------
Proceeds from sale of disposal groups classified as held for sale, net of
transaction costs 11 44 (33) (75.0)
--------------------------------------------------------------------------- -------- -------- -------- -----------
Other investing activities 8 46 (38) (82.6)
--------------------------------------------------------------------------- -------- -------- -------- -----------
Net cash flows used in investing activities (6 24 ) (665) 41 ( 6 . 2 )
--------------------------------------------------------------------------- -------- -------- -------- -----------
Net cash flows used in financing activities (1,107) (1,415) 308 (21.8)
--------------------------------------------------------------------------- -------- -------- -------- -----------
including dividends paid (872) (1,086) 214 (19.7)
--------------------------------------------------------------------------- -------- -------- -------- -----------
Effect of foreign exchange rate changes on cash and cash equivalents 7 6 1 16.7
--------------------------------------------------------------------------- -------- -------- -------- -----------
Net increase/(decrease) in cash and cash equivalents 204 356 (152) (42.7)
--------------------------------------------------------------------------- -------- -------- -------- -----------
Calculation of free cash flow*
(US$ million)
----------------------------------------------------------------------------- -------- ------ -------- -----------
2020 2019 Change Change, %
----------------------------------------------------------------------------- -------- ------ -------- -----------
EBITDA 2,21 2 2,601 (3 89 ) (15.0)
----------------------------------------------------------------------------- -------- ------ -------- -----------
EBITDA excluding non-cash items 2, 203 2,615 (41 2 ) (15. 8 )
----------------------------------------------------------------------------- -------- ------ -------- -----------
Changes in working capital 3 35 373 ( 38 ) ( 10 . 2 )
----------------------------------------------------------------------------- -------- ------ -------- -----------
Income tax accrued (579) (532) (47) 8.8
----------------------------------------------------------------------------- -------- ------ -------- -----------
Social and social infrastructure maintenance expenses (31) (26) (5) 19.2
----------------------------------------------------------------------------- -------- ------ -------- -----------
Net cash flows from operating activities 1,9 28 2,430 ( 502 ) (20. 7 )
----------------------------------------------------------------------------- -------- ------ -------- -----------
Interest and similar payments (269) (302) 33 (10.9)
----------------------------------------------------------------------------- -------- ------ -------- -----------
Capital expenditures, including recorded in financing activities (6 57 ) (762) 105 (1 3 . 8 )
----------------------------------------------------------------------------- -------- ------ -------- -----------
Proceeds from sale of disposal groups classified as held for sale, net of
transaction costs 11 44 (33) (75.0)
----------------------------------------------------------------------------- -------- ------ -------- -----------
Other cash flows from investing activities 7 46 (3 9 ) (8 4 . 8 )
----------------------------------------------------------------------------- -------- ------ -------- -----------
Free cash flow 1,02 0 1,456 (43 6 ) (29.9)
----------------------------------------------------------------------------- -------- ------ -------- -----------
* For the definition of free cash flow, please refer to p. 253
of the Annual Report 2020.
In 2020, net cash ows from operating activities decreased by
20.7% year-on-year. Free cash ow for the period was US$1,020
million.
CAPEX and key projects
In 2020, EVRAZ' capital expenditures fell to US$657 million,
compared with US$762 million a year earlier. Capital expenditures
(including those recognised in financing activities) for 2020 (in
millions of US dollars) can be summarised as follows.
Capital expenditures in 20 20
DEVELOPMENT PROJECTS
--------------------------------------------------------------- ----
Steel segment
--------------------------------------------------------------- ----
Tashtagol iron ore mine upgrade at EVRAZ ZSMK mining
site
The project's aim is to increase annual ore production
at the Tashtakolsky deposit with a partial switch to
sublevel caving using mobile equipment. 24
Sobstvenno-Kachkanarsky deposit greenfield project
The project's aim is to maintain production of raw ore. 13
Rail and beam mill modernisation at EVRAZ NTMK
The project's aim is to increase the production of beams
and of sheet piles. 2
--------------------------------------------------------------- ----
Steel, North America segment
--------------------------------------------------------------- ----
Long rail mill at EVRAZ Pueblo
The project's aim is to replace the existing rail facility
and meet the needs of customers for long rail products. 46
Electric arc furnace (EAF) repowering at EVRAZ Regina
The project's aim is to increase prime coil and plate
production at EVRAZ Regina and reduce electrode consumption. 14
Coal segment
--------------------------------------------------------------- ----
Acquisition of equipment at Osinnikovskaya mine
Acquisition of equipment fully compliant with mining
and geological conditions to provide the projected longwall
load on a monthly basis. 14
Access and development of reserves in the Uskovskaya
mine's seam no. 48
The project's aim is to prepare the reserves in seam
no. 48 for mining 11
Acquisition of equipment at Alardinskaya mine
The project's aim is to reduce the time required for
transition from longwall to longwall and to increase
annual production volumes to 3.2mt. 10
Access and development of reserves in the Esaulskaya
mine's seam no. 29a
The project's aim is to relocate mining operations from
seam no. 26 to seam no. 29a 9
Other development projects 56
MAINTENANCE PROJECTS
--------------------------------------------------------------- ----
Steel segment
--------------------------------------------------------------- ----
Major overhaul of blast furnace no. 6 at EVRAZ NTMK 80
Technical re-equipment of the air heaters of blast furnace
no. 2 at EVRAZ ZSMK 7
--------------------------------------------------------------- ----
Other maintenance projects 371
--------------------------------------------------------------- ----
Total 657
--------------------------------------------------------------- ----
Financing and liquidity
EVRAZ began 2020 with a total debt of US$4,868 million .
Debt management has focused on capital markets maturities coming
due in the first quarter of 2021. Specifically, in March 2020,
EVRAZ signed a US$750 million committed syndicated facility with a
group of international banks with funds made available for one year
after signing. Once utilised, this facility will be repayable in
nine equal quarterly instalments, following a three-year grace
period. As of 31 December
2020, the US$750 million committed syndicated facility remained unutilised .
In the wake of uncertainties related to the COVID-19 pandemic,
the Group decided to increase its cash safety cushion through
additional borrowing. In March, EVRAZ utilized RUB5,000 million (c.
US$68 million as of 31 December 2020), under its committed credit
facility with VTB. Later, in April, it drew another RUB15,000
million (c. US$203 million as of 31 December 2020), under the
uncommitted credit facility with this bank. Currency risk exposure
under the first credit facility of RUB5,000 million was hedged
using cross-currency swaps.
In November, the Group repurchased, in a series of open market
purchases, and cancelled US$15 million of the outstanding principal
of its US$750 million 8.25% Notes due in 2021.
These actions, partially o set by scheduled repayments of bank
loans and leases, led to an increase in total debt during 2020 by
US$115 million to US$4,983 million, as of 31 December 2020.
During 2020, EVRAZ paid two interim dividends to its
shareholders in the amount of US$581 million (US$0.40 per share) in
March and US$291 million (US$0.20 per share) in October.
By the end of 2020 EVRAZ achieved a net debt reduction of US$89
million to US$3,356 million, compared with US$3,445 million as of
31 December 2019. The ratio of net debt to last twelve months (LTM)
EBITDA was 1.5 times as of 31 December 2020, compared with 1.3
times as of 31 December 2019. Interest expense accrued on loans,
bonds and notes amounted to US$291 million during the period, at
compared with the amount of 2019, despite a higher total debt load,
re ecting lower USD and RUB base rates since the second quarter
2020.
As of 31 December 2020, various bilateral facilities with a
total outstanding principal of around US$1,458 million contained
financial maintenance covenants. Maintenance covenants under these
facilities include two key ratios calculated using EVRAZ plc's
consolidated financials: a maximum of net leverage and a minimum of
EBITDA interest cover. As of 31 December 2020, EVRAZ was in full
compliance with its financial covenants.
As of 31 December 2020, cash amounted to US$1,627 million and
committed credit facilities to US$937 million, allowing the Group
to comfortably cover upcoming maturities. Short-term loans and the
current portion of long-term loans amounted to US$1,078
million.
Review of operations by Segment
(US$ million) Steel Steel, North Coal Other
America
--------------- -------------- --------------- -------------- ------------
2020 2019 2020 2019 2020 2019 2020 2019
--------------- ------ ------ ------- ------ ------ ------ ----- -----
Revenues 6,969 8,143 1,779 2,500 1,490 2,021 410 483
--------------- ------ ------ ------- ------ ------ ------ ----- -----
EBITDA 1,930 1,795 (28) 38 400 843 15 18
--------------- ------ ------ ------- ------ ------ ------ ----- -----
EBITDA
margin 27.7% 22.0% (1.6)% 1.5% 26.8% 41.7% 3.7% 3.7%
--------------- ------ ------ ------- ------ ------ ------ ----- -----
CAPEX 401 394 92 128 154 227 10 13
--------------- ------ ------ ------- ------ ------ ------ ----- -----
Steel segment
Sales review
Steel segment revenues by product
2020 2019
--------------------------------- ----------------------------------------- ---------------
US$ US$ % of total segment
million % of total segment revenues million revenues Change, %
----------------------- --------- ------------------------------ --------- --------------------------- ----------
Steel products,
external sales 6,079 87.2 6,637 81.5 (8.4)
----------------------- --------- ------------------------------ --------- --------------------------- ----------
Semi-finished
products(*) 2,479 35.6 2,528 31.0 (1.9)
----------------------- --------- ------------------------------ --------- --------------------------- ----------
Construction
products(**) 2,013 28.9 2,166 26.6 (7.1)
----------------------- --------- ------------------------------ --------- --------------------------- ----------
Railway products(***) 1,099 15.8 1,181 14.5 (6.9)
----------------------- --------- ------------------------------ --------- --------------------------- ----------
Flat-rolled
products(****) 146 2.1 386 4.7 (62.2)
----------------------- --------- ------------------------------ --------- --------------------------- ----------
Other steel
products(*****) 342 4.9 377 4.6 (9.3)
----------------------- --------- ------------------------------ --------- --------------------------- ----------
Steel products,
intersegment sales 37 0.5 168 2.1 (78.0)
----------------------- --------- ------------------------------ --------- --------------------------- ----------
Including sales to
Steel, North America 26 0.4 154 1.9 (83.1)
----------------------- --------- ------------------------------ --------- --------------------------- ----------
Iron ore products 146 2.1 190 2.3 (23.2)
----------------------- --------- ------------------------------ --------- --------------------------- ----------
Vanadium products 349 5.0 648 8.0 (46. 1 )
----------------------- --------- ------------------------------ --------- --------------------------- ----------
Other revenues 35 8 5.1 499 6.1 (28. 3 )
----------------------- --------- ------------------------------ --------- --------------------------- ----------
Total 6,969 100.0 8,143 100.0 (14.4)
----------------------- --------- ------------------------------ --------- --------------------------- ----------
* Includes billets, slabs, pig iron, pipe blanks and other
semi-finished products.
** Includes rebar, wire rods, wire, beams, channels and
angles.
*** Includes rails, wheels, tyres and other railway
products.
**** Includes commodity plate and other flat-rolled
products.
***** Includes rounds, grinding balls, mine uprights and
strips.
Sales volumes of Steel segment
(thousand tonnes)
-------- ------- -------------------
2020 2019 Change Change, %
----------------------------------------------- -------- ------- ------- ----------
Steel products, external sales 12,197 12,075 122 1.0
----------------------------------------------- -------- ------- ------- ----------
Semi-finished products 6,039 5,636 403 7.2
----------------------------------------------- -------- ------- ------- ----------
Construction products 3,944 3,800 144 3.8
----------------------------------------------- -------- ------- ------- ----------
Railway products 1,299 1,393 (94) (6. 7 )
----------------------------------------------- -------- ------- ------- ----------
Flat-rolled products 267 622 (355) (57.1)
----------------------------------------------- -------- ------- ------- ----------
Other steel products 647 624 23 3.7
----------------------------------------------- -------- ------- ------- ----------
Steel products, intersegment sales 67 318 (251) (78.9)
----------------------------------------------- -------- ------- ------- ----------
Total steel products 12,264 12,393 (129) (1.0)
----------------------------------------------- -------- ------- ------- ----------
Vanadium products (tonnes of pure vanadium) 18,696 19,334 (638) (3.3)
----------------------------------------------- -------- ------- ------- ----------
Vanadium in slag 6,129 6,451 (322) (5.0)
----------------------------------------------- -------- ------- ------- ----------
Vanadium in alloys and chemicals 12, 534 12,883 (349) (2. 7 )
----------------------------------------------- -------- ------- ------- ----------
Iron ore products 1,732 1,895 (163) (8.6)
----------------------------------------------- -------- ------- ------- ----------
Sinter - 759 (759) (100.0)
----------------------------------------------- -------- ------- ------- ----------
Pellets 1,732 1,134 598 52.7
----------------------------------------------- -------- ------- ------- ----------
Other iron ore products - 2 (2) (100.0)
----------------------------------------------- -------- ------- ------- ----------
Geographic breakdown of external steel product sales
(US$ million)
----------------------------------------------------------------------------
2020 2019 Change Change, %
--------------------------------------- ------ ------ ------- ----------
Russia 2,962 3,358 (396) (11.8)
--------------------------------------- ------ ------ ------- ----------
Asia 2,200 2,028 172 8.5
--------------------------------------- ------ ------ ------- ----------
Europe 221 492 (271) (55.0)
--------------------------------------- ------ ------ ------- ----------
CIS 490 565 (75) (13.4)
--------------------------------------- ------ ------ ------- ----------
Africa, America and rest of the world 206 195 12 6.3
--------------------------------------- ------ ------ ------- ----------
Total 6,079 6,638 (558) (8.4)
--------------------------------------- ------ ------ ------- ----------
In 2020, revenues from the Steel segment dropped by 14.4% to
US$6,969 million, compared with US$8,143 million a year earlier.
The segment's revenues were impacted by a sharp reduction in sales
prices for vanadium products, as well as a slight fall in
construction sales prices and lower at-rolled sales volumes, along
with lower sales volumes in the North America segment.
Revenues from external sales of semi-finished products decreased
by 1.9% amid a decline 9.1% in average prices, which was partly o
set by a 7.2% increase in sales volumes. The increase was driven
primarily by change in the product mix in favour of higher slab and
billets sales to export destinations following a decrease in demand
in Russia amid the COVID-19 pandemic.
Revenues from sales of construction products to third parties
fell by 7.1%: a 10.9% decrease was attributed to a reduction in
average prices, which was partly o set by a 3.8% increase due to
higher export sales volumes to Asia following a decrease in demand
in Russia amid the COVID-19 pandemic.
Revenues from external sales of railway products fell due to a
6.7% decrease in volumes, which was coupled with sales price
decline of 0.2%. A key driver of lower railway product sales
volumes during the reporting period was lower demand for railway
wheels on the Russian market, which was also attributable to the
COVID-19 pandemic.
External revenues from at-rolled products fell by 62.2%. A 57.1%
decrease was attributed to a drop in sales volumes to Europe mainly
due to disposal of EVRAZ Palini e Bertoli which took place in Q4
2019, and a 5.2% decrease due to lower sales prices.
The share of sales to the Russian market declined from 50.6% in
2019 to 48.7% in 2020, following increase of export sales to
Asia.
Steel segment revenues from sales of iron ore products dropped
by 23.2%. This was due to a 14.6% decrease in sales prices, as well
as 8.6% reduction in sales volumes, primarily as a result of the
absence of sinter sales to third parties, due to disposal of
EvrazTransUkraina and greater requirements for own operations.
In 2020, around 63.2% of EVRAZ' iron ore consumption in
steelmaking came from the Group's own operations, compared with
66.6% a year earlier.
Steel segment revenues from sales of vanadium products dropped
by 46.0%, primarily due to a 42.7% downturn in sales prices in line
with market trends. Ferrovanadium prices dropped in line with the
London Metal Bulletin and Ryan's Notes quotations, while vanadium
slag prices fell along with vanadium pentoxide (V(2) O(5) )
quotations.
Steel segment cost of revenues
Steel segment cost of revenues
2020 2019
------------------------------------ ----------------------------------- -----------
US$ million % of segment revenue US$ million % of segment revenue Change, %
-------------------------- ------------ ---------------------- ------------ --------------------- -----------
Cost of revenues 4,596 65.9 5,836 71.7 (21. 2 )
-------------------------- ------------ ---------------------- ------------ --------------------- -----------
Raw materials 2,025 29.1 2,577 31.6 (21.4)
-------------------------- ------------ ---------------------- ------------ --------------------- -----------
Iron ore 503 7.2 540 6.6 (6.9)
-------------------------- ------------ ---------------------- ------------ --------------------- -----------
Coking coal 769 11.0 1,082 13.3 (28.9)
-------------------------- ------------ ---------------------- ------------ --------------------- -----------
Scrap 442 6.3 542 6.7 (18. 5 )
-------------------------- ------------ ---------------------- ------------ --------------------- -----------
Other raw materials 31 1 4. 5 413 5.0 (2 4 . 7 )
-------------------------- ------------ ---------------------- ------------ --------------------- -----------
Auxiliary materials 339 4.9 366 4.5 (7.4)
-------------------------- ------------ ---------------------- ------------ --------------------- -----------
Services 241 3.5 277 3.4 (13. 0 )
-------------------------- ------------ ---------------------- ------------ --------------------- -----------
Transportation 407 5.8 457 5.6 (10. 9 )
-------------------------- ------------ ---------------------- ------------ --------------------- -----------
Staff costs 477 6. 8 501 6.2 (4. 8 )
-------------------------- ------------ ---------------------- ------------ --------------------- -----------
Depreciation 233 3.3 227 2.8 2. 6
-------------------------- ------------ ---------------------- ------------ --------------------- -----------
Energy 398 5.7 439 5.4 (9.3)
-------------------------- ------------ ---------------------- ------------ --------------------- -----------
Other* 47 6 6.8 99 2 12.2 (52. 0 )
-------------------------- ------------ ---------------------- ------------ --------------------- -----------
* Includes goods for resale, changes in work in progress and
finished goods, taxes in cost of revenues, semi-finished products,
allowance for inventory and inter-segment unrealised profit.
In 2020, the Steel segment's cost of revenues decreased by 21.2%
year-on-year. The main reasons for the increase were:
-- The cost of raw materials declined by 21.4%, mainly due to
lower costs of coking coal (down 28.9%), due to the trend on global
markets, as well as reduced use of more expensive coal concentrate,
which was replaced with a cheaper form from Esaulskaya mine. Scrap
costs declined by 18.5%, due to lower scrap price and lower share
of scrap in metal-charge amid increased pig iron consumption. The
decrease in raw material costs was also accompanied by a weaker
rouble and reduced consumption due to cost-cutting initiatives.
-- Costs for auxiliary materials declined by 7.4%, amid lower
consumption of auxiliary materials and auxiliary materials
prices.
-- Service costs declined by 13.0%, primarily driven by the
lower cost and volume of ferrovanadium processing, whose costs are
linked to final product quotes.
-- Transportation costs declined by 10.9%, primarily due to
lower shipment volumes due to the COVID-19 pandemic, national
lockdowns, the global economic shock and a sharp decline in
economic growth rates.
-- Energy costs were lower due to the weaker rouble, as well as
higher own electricity generation and change in fuel structure.
-- Other costs were down by 52.0%, mainly due to lower cost of
goods for resale, amid a drop in vanadium purchase prices in 2020,
compared to 2019. Other reasons were related to reduction in the
purchase price of goods, higher sales of own production scrap, and
significant increases of semi- and vanadium stocks due to
COVID-19.
Steel segment gross profit
The Steel segment's gross profit increased by 2.9% year-on-year,
as positive e ects of lower cost outweighed
the decrease in sales volumes and prices.
Steel, North America segment
Sales review
Steel, North America segment revenues by product
2020 2019
--------------------------------------- -------------------------------------- ----------
% of total segment % of total segment
US$ million revenue US$ million revenue Change, %
------------------------- ------------ ------------------------- ------------ ------------------------ ----------
Steel products 1 , 697 94.4 2,372 94.8 (29.2)
------------------------- ------------ ------------------------- ------------ ------------------------ ----------
Semi-finished products 109 6.1 121 4.8 (9.9)
------------------------- ------------ ------------------------- ------------ ------------------------ ----------
Construction
products(*) 183 10.3 200 8.0 (8.5)
------------------------- ------------ ------------------------- ------------ ------------------------ ----------
Railway products(**) 326 18.3 405 16.2 (19.5)
------------------------- ------------ ------------------------- ------------ ------------------------ ----------
Flat-rolled
products(***) 323 18.2 518 20.7 (37.6)
------------------------- ------------ ------------------------- ------------ ------------------------ ----------
Tubular products(****) 743 41.8 1,128 45.1 (34.1)
------------------------- ------------ ------------------------- ------------ ------------------------ ----------
Other revenues (*****) 95 5.6 128 5.1 (21.9)
------------------------- ------------ ------------------------- ------------ ------------------------ ----------
Total 1 , 779 100.0 2,500 100.0 (28.8)
------------------------- ------------ ------------------------- ------------ ------------------------ ----------
* Includes beams, rebar and structural tubing.
** Includes rails and wheels.
*** Includes commodity plate, specialty plate and other
flat-rolled products.
**** Includes large-diameter line pipes, ERW pipes and casing,
seamless pipes, casing and tubing and other products.
***** Includes scrap and services.
Sales volumes of Steel, North America segment
(thousand tonnes)
2020 2019 Change Change, %
----------------------------------- ---------- ----------- -------- ----------
Semi-finished products 144 192 (48) (25.0)
----------------------------------- ---------- ----------- -------- ----------
Construction products 262 256 6 2.3
----------------------------------- ---------- ----------- -------- ----------
Railway products 404 441 (3 7 ) (8.4)
----------------------------------- ---------- ----------- -------- ----------
Flat-rolled products 382 523 (141) (27.0)
----------------------------------- ---------- ----------- -------- ----------
Tubular and other steel products 537 795 (256) (32. 3 )
----------------------------------- ---------- ----------- -------- ----------
Total 1 , 729 2 , 20 7 (476) ( 21. 5 )
----------------------------------- ---------- ----------- -------- ----------
The segment's revenues from the sale of steel products dropped,
due to a decrease of 21.7% in volumes, as well as a decrease of
7.5% in prices. This was mainly attributable to lower demand on the
tubular and at-rolled market.
Revenues from the sale of semi-finished products decreased by
9.9%, due to a decline in sales volumes of 25.0%, following the
fulfilment of a contract with a key customer, albeit partly o set
by an increase in prices of 15.1% .
Construction product revenues fell by 8.5%, due to a 10.8%
reduction in prices, partly o set by a 2.3% increase in sales
volumes as a result of improved market conditions.
Railway product revenues fell by 19.5%, driven by a decline in
prices of 12.1%, along with lower sales volumes by 8.4%, due to
reduced demand driven by the COVID-19 pandemic.
Revenues from at-rolled products decreased due to declines of
10.6% in prices and of 27.0% in sales volumes, as a result of
weakening market demand amid the COVID-19 pandemic.
Revenues from tubular product sales fell by 34.1% year-on-year,
due to a drop of 32.5% in volumes. This was driven by as turbulence
on the oil and gas markets, which led to falling demand, resulting
in the idling of the OCTG mills in Canada and the US.
Steel, North America segment cost of revenues
Steel, North America segment cost of revenues
2020 2019
----------------------------------- ----------------------------------- ----------
US$ million % of segment revenue US$ million % of segment revenue Change, %
------------------------- ------------ --------------------- ------------ --------------------- ----------
Cost of revenues 1,604 90.1 2,204 88.1 (27.2)
------------------------- ------------ --------------------- ------------ --------------------- ----------
Raw materials 454 25.5 686 27.4 (33.8)
------------------------- ------------ --------------------- ------------ --------------------- ----------
Semi-finished products 238 13.4 396 15.8 (39.9)
------------------------- ------------ --------------------- ------------ --------------------- ----------
Auxiliary materials 17 2 9.7 222 8.9 (22.5)
------------------------- ------------ --------------------- ------------ --------------------- ----------
Services 145 8.2 190 7.6 (23. 7 )
------------------------- ------------ --------------------- ------------ --------------------- ----------
Staff costs 240 13.5 319 12.8 (24.7)
------------------------- ------------ --------------------- ------------ --------------------- ----------
Depreciation 100 5.6 109 4.4 (8.3)
------------------------- ------------ --------------------- ------------ --------------------- ----------
Energy 90 5.1 117 4.7 (23.1)
------------------------- ------------ --------------------- ------------ --------------------- ----------
Other* 16 5 9. 3 165 6.6 -
------------------------- ------------ --------------------- ------------ --------------------- ----------
* Primarily includes transportation, goods for resale, certain
taxes, changes in work in progress and fixed goods, and allowances
for inventories.
In 2020, the Steel, North America segment's cost of revenues
dropped significantly year-on-year driven by
declined sales volumes . The main changes related to :
-- Raw material costs fell by 33.8%, primarily because of lower
production volumes and lower cost of scrap .
-- The cost of semi-finished products was down 39.9%, due to the
reduction of consumption at Portland Flat .
-- Auxiliary material costs fell by 7.6%, driven by lower
production levels at Pueblo and in Canada .
-- Service costs went down by 23.7%, driven primarily by lower
production volumes and mill idling .
-- Sta costs decreased by 24.8%, mostly driven by the idling of
OCTG mills in Canada and the US , an overall decrease in production
levels for other products and a rotating furlough schedule for
salaried employees .
-- Energy costs fell by 23.1%, primarily due to reduced
production levels and lower natural gas prices .
-- Other costs remained broadly at year-on-year.
Steel, North America segment gross profit
The Steel, North America segment's gross profit totalled US$175
million for 2020, down from US$296 million a year earlier. The
decline was driven primarily by lower sales volumes for at-rolled
and OCTG, due to worsening market conditions, which was partly o
set by lower prices for raw materials, purchased semi-finished
products, sta costs, auxiliary materials and services.
Coal segment
Sales review
Coal segment revenues by product
2020 2019
---------------------------------------- ---------------------------------------- -----------
% of total segment % of total segment
US$ million revenue US$ million revenue Change, %
--------------------- ------------ -------------------------- ------------ -------------------------- -----------
External sales
--------------------- ------------ -------------------------- ------------ -------------------------- -----------
Coal products 929 62.4 1,251 61.9 (25.7)
--------------------- ------------ -------------------------- ------------ -------------------------- -----------
Coking coal 74 4.9 148 7.3 (50.0)
--------------------- ------------ -------------------------- ------------ -------------------------- -----------
Coal concentrate 853 57.3 1,103 54.6 (22.7)
--------------------- ------------ -------------------------- ------------ -------------------------- -----------
Steam coal 2 0.2 - - 100.0
--------------------- ------------ -------------------------- ------------ -------------------------- -----------
Inter-segment sales
--------------------- ------------ -------------------------- ------------ -------------------------- -----------
Coal products 53 6 35.9 730 36.1 (26.8)
--------------------- ------------ -------------------------- ------------ -------------------------- -----------
Coking coal 101 6.8 124 6.1 (18.5)
--------------------- ------------ -------------------------- ------------ -------------------------- -----------
Coal concentrate 43 5 29. 2 606 30.1 ( 28 . 2 )
--------------------- ------------ -------------------------- ------------ -------------------------- -----------
Other revenues 2 5 1. 7 40 2.0 (3 7 . 5 )
--------------------- ------------ -------------------------- ------------ -------------------------- -----------
Total 1,490 100.0 2,021 100.0 (26.3)
--------------------- ------------ -------------------------- ------------ -------------------------- -----------
Sales volumes of Coal segment
(thousand tonnes)
-------------------------------------- --------- --------------------------------
2020 2019 Change Change, %
-------------------------------------- --------- --------- --------- ----------
External sales
-------------------------------------- --------- --------- --------- ----------
Coal products 12,336 11,053 1,283 11.6
-------------------------------------- --------- --------- --------- ----------
Coking coal 2,233 1,928 305 1 5 . 8
-------------------------------------- --------- --------- --------- ----------
Steam coal 37 1 36 n/a
-------------------------------------- --------- --------- --------- ----------
Coal concentrate and other products 10,066 9,124 941 10.3
-------------------------------------- --------- --------- --------- ----------
Intersegment sales
-------------------------------------- --------- --------- --------- ----------
Coal products 6,986 6,569 417 6.3
-------------------------------------- --------- --------- --------- ----------
Coking coal 2,323 2,044 279 13.6
-------------------------------------- --------- --------- --------- ----------
Coal concentrate 4,663 4,525 138 3.3
-------------------------------------- --------- --------- --------- ----------
Total, coal products 19,322 17,622 1,700 9.6
-------------------------------------- --------- --------- --------- ----------
Revenues from external sales of coal products fell, amid a 37.3%
reduction in prices, partly o set by an 11.6% increase in sales
volumes. Coking coal revenues fell by 50.0% and coking coal
concentrate revenues dropped by 22.7% amid lower pricing, but were
o set in part by higher sales volumes. These were driven by strong
demand for coal on the Russian market, as well as growth in demand
for coal from China. Long-term partnerships with Japanese, Korean
and European clients have minimised the impact of declining demand
on these markets.
Revenues from internal sales of coal products were down 26.8%,
mainly due to a 33.1% reduction in sales prices, which was partly o
set by a 6.3% uptick in volumes. Coking coal volumes rose by 22.4%,
due to increased sales of K and KS grades.
In 2020, the Coal segment's sales to the Steel segment amounted
to US$537 million (36.0% of total sales), compared with US$730
million (36.1%) in 2019.
During the reporting period, roughly 78.0% of EVRAZ' coking coal
consumption in steelmaking came from the Group's own operations,
compared with 74.1% in 2019.
Coal segment cost of revenues
Coal segment cost of revenues
2020 2019
------------------------------------ ------------------------------------ ----------
US$ million % of segment revenue US$ million % of segment revenue Change, %
---------------------- ------------ ---------------------- ------------ ---------------------- ----------
Cost of revenues 1,027 68.9 1,046 51.8 (1.8)
---------------------- ------------ ---------------------- ------------ ---------------------- ----------
Auxiliary materials 110 7.4 159 7.9 (30.8)
---------------------- ------------ ---------------------- ------------ ---------------------- ----------
Services 53 3.5 97 4.8 (45.4)
---------------------- ------------ ---------------------- ------------ ---------------------- ----------
Transportation 294 19.7 351 17.4 (16.2)
---------------------- ------------ ---------------------- ------------ ---------------------- ----------
Staff costs 200 13.4 223 11.0 (10.3)
---------------------- ------------ ---------------------- ------------ ---------------------- ----------
Depreciation 163 10.9 171 8.5 (4.7)
---------------------- ------------ ---------------------- ------------ ---------------------- ----------
Energy 43 2.9 51 2.5 (15.7)
---------------------- ------------ ---------------------- ------------ ---------------------- ----------
Other* 164 11.0 (6) (0.3) 100.0
---------------------- ------------ ---------------------- ------------ ---------------------- ----------
* Primarily includes goods for resale, certain taxes, changes in
work in progress and finished goods, allowance for inventory, raw
materials and inter-segment unrealised profit .
The main drivers of the year-on-year increase in the Coal
segment's cost of revenues were as follows:
-- The consumption of auxiliary materials decreased by 30.8% due
mainly to lower volumes of preparation at third-party plants, the
idling of production at the Raspadsky open pit in Q2-Q3 2020, and a
decrease in the production volumes at Raspadskaya mine.
-- Costs for services dropped by 45.4%, due mainly to lower
volumes of preparation at third-party plants, the idling of
production at the Raspadsky open pit in Q2-Q3 2020, and a decrease
in production volumes at Raspadskaya mine.
-- Transportation costs fell by 16.2% during the reporting
period, primarily due to the idling of production at the Raspadsky
open pit mine in Q2-Q3 2020, the use of in-house transportation
equipment instead of third-party contractor equipment, lower
volumes shipped.
-- Sta costs fell by 10.3% because of lower mining volumes as well as rouble depreciation.
-- Other costs increased during the reporting period, mainly due
to higher sales of accumulated stock, partially o set by higher
work-in-progress, and the lower cost of goods for resale and lower
mineral extraction tax payments, due to reduced production
levels.
Coal segment gross profit
In 2020, the Coal segment's gross profit was US$464 million,
down from US$975 million a year earlier, primarily due to lower
sales prices.
APPIX
Key RISKS AND UNCERTAINTIES
EVRAZ is exposed to numerous risks and uncertainties that exist
in its business that may affect its ability to execute its strategy
effectively in 2021 and could cause the actual results to differ
materially from expected and historical results.
The Directors consider that the principal risks and
uncertainties as summarised below and detailed in the EVRAZ plc
2020 Annual Report on pages 92 to 95 , copies of which are
available at
https://www.evraz.com/en/investors/reports-and-results/annual-reports/
, are relevant in 2021 and the mitigating actions described are
appropriate.
Principal risks
Risk Mitigating/ risk management actions
Global economic This is an external risk that is mostly
factors, industry outside the control of EVRAZ; however, it
conditions and is partly mitigated by exploring new market
cyclicality opportunities,
focusing on expanding the share of value-added
products, further downscaling inefficient
assets, suspending production in low-growth
regions, reducing and managing the cost
base with the objective of being among the
sector's lowest-cost producers, and improving
the balance sheet/gearing.
In 2020, the COVID-19 pandemic brought additional
market uncertainties. At the same time,
management's actions reduced the impact
of this risk on the Group's business and
operations
----------------------------------------------------
Product competition EVRAZ mitigates this risk by expanding its
product portfolio and penetrating new geographic
and product markets.
It continuously develops and improves its
loyalty and customer focus programmes and
initiatives.
The Group also implements quality improvement
initiatives and strives to increase the
share of value-added products.
----------------------------------------------------
Cost effectiveness For both the mining and steelmaking operations,
EVRAZ is implementing cost-reduction projects
to increase asset competitiveness.
The Group's focused investment policy is
aimed at reducing and managing the cost
base.
EVRAZ also seeks to mitigate this risk through
the control of its Russian steel distribution
network, the development of high value-added
products, and the implementation of EVRAZ
Business System transformation projects
focused on increasing efficiency and e ectiveness.
In addition, the Group's digital projects
help to reduce risks associated with primary
equipment and to improve e ectiveness. This
includes the Advanced Analytics programme,
which it launched in 2020 to drive operational
efficiency.
----------------------------------------------------
Potential regulatory EVRAZ and its executive teams are members
actions by governments, of various national
incl. trade, antimonopoly, industry bodies.
antidumping regulation,
sanctions regimes, As a result, they contribute to the development
and other laws of such bodies and, when appropriate, participate
and regulations in relevant discussions with political
and regulatory authorities.
The Group seeks to monitor potential legislative
changes before their introduction, at the
point when new laws are being drafted.
EVRAZ has implemented and will further develop
procedures to ensure that sanctions requirements
are complied with across its
operations.
While the Group's internal compliance controls
address the associated risks, the general
uncertainty in the area increases management's
focus on this risk.
EVRAZ also continuously monitors changes
in temporary legislation related to the
COVID-19 pandemic.
----------------------------------------------------
Functional currency While this external risk is mostly outside
devaluation the Group's ability to control, management
works to mitigate its potential impact through
proper disclosure and monitoring.
EVRAZ also works to reduce the amount of
intergroup loans denominated in Russian
roubles to limit the possible devaluation
e ect on its consolidated net income .
----------------------------------------------------
HSE: environmental EVRAZ monitors its environmental risk matrix
on a regular basis, and it develops and
implements mitigation measures in response
to these risks. The top management also
devotes greater attention to monthly monitoring
of environmental risk trends and factors.
The Group implements programmes to reduce
air emissions and water use at its plants,
as well as to improve its waste management
practices.
EVRAZ has developed an environmental strategy
and has updated its list of projects in
accordance with it to achieve strategic
goals regarding emissions and waste. The
strategy is being implemented through dedicated
programmes in each division.
Most of the Group's operations are certified
under ISO 14001 and work is ongoing to bring
the remaining plants in compliance
with this international standard. EVRAZ
is currently compliant with REACH requirements.
The Group has begun to develop a Climate
Change Strategy, including performing various
scenario analyses and identifying appropriate
risks.
EVRAZ also participates in the development
of GHG emissions regulation in Russia. In
addition, the Group has achieved reductions
in GHG emissions as a positive side-e ect
of its energy efficiency projects .
----------------------------------------------------
HSE: health and To mitigate these risks, EVRAZ ensures that
safety its management KPIs place significant emphasis
on safety performance and the standardisation
of critical safety programmes.
The Group is implementing an energy isolation
programme, further developing a programme
of behaviour safety observations to drive
a more proactive approach to preventing
injuries and incidents, as well
as launching a series of health and safety
initiatives related to underground mining.
Other measures include implementing maintenance
and repair modernisation programmes, launching
a downtime management system, further developing
the occupational safety risk assessment
methodology, as well as analysing the e
ectiveness of corrective measures.
In addition, the Group conducts mass testing
of personnel for COVID-19 and has introduced
reliable barriers to prevent carriers of
the virus
from entering its facilities.
----------------------------------------------------
Business interruption The Group has defined and established disaster
recovery procedures that are subject to
regular review. Business interruptions in
mining mainly relate to production safety.
Measures to mitigate these risks include
methane monitoring and degassing systems,
timely mining equipment maintenance, as
well as employee safety training.
EVRAZ performs detailed incident cause analyses
to develop and implement preventative actions.
Records of minor interruptions are reviewed
to identify any more significant underlying
issues.
----------------------------------------------------
Digital Digital Transformation is a part of the
e ectiveness, Group's IT strategy.
as well
as e ective, EVRAZ continuously assesses and monitors
efficient information security risks, and it implements
and continuous mitigation measures upon completion of external
IT service assessments by an independent advisor.
The Group conducts regular continuity testing
for the most critically important IT systems.
Successful mitigation measures include launching
the IT Security Operation Centre, conducting
security awareness training for employees
and e ectively organising remote work for
sta during the COVID-19 pandemic.
----------------------------------------------------
Capital projects EVRAZ reviews all proposed capital projects
and expenditure on a risk return basis. The current list
of projects has been reviewed and updated.
Each project is presented for approval against
the Group's risk matrix to assess its potential
downside and any possible mitigating actions.
EVRAZ has created a list of typical project
risks and a database of lessons learned.
Project delivery is closely monitored against
project plans resulting in high-level action
to manage project investment for both timely
delivery and planned project expenditure.
New mine development and definition of feasibility
plans are reviewed and signed o by independent
mining engineers.
The Group regularly revisits the key assumptions
for its main investment projects and performs
scenario analyses, which may result in the
suspension and/or postponement of certain
projects.
EVRAZ also uses financial modelling to define
the strategy of each individual asset and
the enterprise in general for the purpose
of long-term FCF forecasting, including
investment projects.
The project management system's transformation
is ongoing.
----------------------------------------------------
EVRAZ monitors these risks and actively pursues strategies to
mitigate them on an ongoing basis.
Emerging risks
In addition to principal risks, management pays particular
attention to threats that could become significant over a certain
time, known as emerging risks. The Group defines these as events
that could meaningfully impact EVRAZ' activities and results, but
have a lower likelihood of materializing in the next three to five
years.
They include:
-- Climate change.
-- Liabilities incurred due to environmental impairments.
The management works continuously to monitor and manage emerging
risks and devise mitigation measures.
DIVIDS
Interim dividend
In consideration of EVRAZ robust performance in 2020, EVRAZ
Board of Directors has announced an interim dividend. On 24
February 2021, the Board of Directors voted to disburse a total of
US$ 437.1 million, or US$0. 30 per share. The record date is
12 March 2021 and payment date is 7 April 2021.
The interim dividend will be paid in US Dollars, unless a
shareholder elects to receive dividends in UK pounds sterling or
Euros. The last date for submitting a Currency Election will be 15
March 2021. All conversions will take place on or around 17 March
2021.
DIRECTORS' RESPONSIBILITY STATEMENT
Each of the directors whose names and functions are listed on
pages 100 - 103 of the Annual report confirm that to the best of
their knowledge:
-- the consolidated financial statements of EVRAZ plc, prepared
in accordance with international accounting standards in conformity
with the requirements of the Companies Act 2006 and IFRSs adopted
pursuant to Regulation (EC) No 1606/2002 as it applies in the
European Union, give a true and fair view of the assets,
liabilities, financial position and profit or loss of the Company
and the undertakings included in the consolidation taken as a whole
(the 'Group');
-- the management report required by DTR 4.1.8R includes a fair
review of the development and performance of the business and the
position of the Company and the Group, together with a description
of the principal risks and uncertainties that they face.
By order of the Board
Alexander Frolov
Chief Executive Officer
EVRAZ plc
24 February 2021
onsolidated statement of operations
(in millions of US dollars, except for per share information
Year ended 31 December
--------------------------------
Notes 20 20 201 9 2018
---------------------------------------------------------------------------- ------ ---------- --------- ---------
Continuing operations
Revenue
Sale of goods 3 $ 9 ,514 $ 11,569 $ 12,525
Rendering of services 3 240 336 311
---------------------------------------------------------------------------- ------ ---------- --------- ---------
9,754 11,905 12,836
Cost of revenue 7 (6, 712 ) (8,273) (8,011)
---------------------------------------------------------------------------- ------ ---------- --------- ---------
Gross profit 3,0 42 3,6 32 4,825
Selling and distribution costs 7 (840) (96 6 ) (1,013)
General and administrative expenses 7 (552) (611) (546)
Social and social infrastructure maintenance expenses (31) (26) (27)
Gain/(loss) on disposal of property, plant and equipment, net (3) 3 (11)
Impairment of non-financial assets 6 (310) ( 4 42) (30)
Foreign exchange gains/(losses), net 408 (341) 361
Other operating income 22 22 24
Other operating expenses 7 ( 65 ) (54) (55)
---------------------------------------------------------------------------- ------ ---------- --------- ---------
Profit from operations 1,67 1 1, 2 17 3,528
Interest income 7 6 8 18
Interest expense 7 (328) (336) (359)
Share of profits/(losses) of joint ventures and associates 11 2 9 9
Impairment of non-current financial assets 13 - (56) -
Gain/(loss) on financial assets and liabilities, net 7 (71) 17 13
Gain/(loss) on disposal groups classified as held for sale, net 12 1 29 (10)
Other non-operating gains/(losses), net 14 14 2
---------------------------------------------------------------------------- ------ ---------- --------- ---------
Profit before tax 1, 295 90 2 3,201
Income tax expense 8 (437) (537) (731)
---------------------------------------------------------------------------- ------ ---------- --------- ---------
Net profit $ 8 58 $ 365 $ 2,470
============================================================================ ====== ========== ========= =========
Attributable to:
Equity holders of the parent entity $ 8 48 $ 3 26 $ 2,406
Non-controlling interests 10 39 64
============================================================================ ====== ========== ========= =========
$ 8 58 $ 365 $ 2,470
============================================================================ ====== ========== ========= =========
Earnings per share for profit attributable to equity holders of the parent
entity, US dollars:
Basic 20 $0.5 8 $0. 23 $ 1.67
Diluted 20 $0.58 $0. 2 2 $ 1.65
The accompanying notes form an integral part of these
consolidated financial statements.
onsolidated statement of comprehensive income
(in millions of US dollars
Year ended 31 December
-------------------------------
Notes 20 20 2019 2018
----------------------------------------------------------------------------- ------ --------- ---------- --------
Net profit $ 8 58 $ 365 $ 2,470
Other comprehensive income/(loss)
Oth er comprehen sive income to be reclassified to profit or lo ss in subs
equent periods
Exchange differences on translation of foreign operations into presentation
currency (894) 75 7 (1,120)
Exchange differences recycled to profit or loss on disposal of foreign
operations 4,12 - 31 63
Net gains/(losses) on cash flow hedges 25 - 27 (3)
Net (gains)/losses on cash flow hedges recycled to profit or loss 7, 25 - (33) -
----------------------------------------------------------------------------- ------ ---------
(894) 782 (1,060)
Effect of translation to presentation currency of the Group's joint ventures
and associates 11 (13) 8 (13)
----------------------------------------------------------------------------- ------ ---------
(13) 8 (13)
Items not to be reclassified to profit or loss in subsequent periods
Net gains/(losses) on equity instruments at fair value through other
comprehensive income 13 - - 59
Gains/(losses) on re-measurement of net defined benefit liability 23 (3) (15) 28
Income tax effect 8 2 (1) (6)
----------------------------------------------------------------------------- ------ --------- ---------- --------
(1) (16) 22
Total other comprehensive income/(loss), net of tax (908) 774 (992)
----------------------------------------------------------------------------- ------ --------- ---------- --------
Total comprehensive income/(loss), net of tax $ ( 50 ) $ 1, 1 39 $ 1,478
============================================================================= ====== ========= ========== ========
Attributable to:
Equity holders of the parent entity $ ( 41 ) $ 1,078 $ 1,441
Non-controlling interests (9) 61 37
----------------------------------------------------------------------------- ------ --------- ---------- --------
$ ( 50 ) $ 1, 1 39 $ 1,478
============================================================================= ====== ========= ========== ========
The accompanying notes form an integral part of these
consolidated financial statements.
onsolidated statement of financial position
(in millions of US dollars)
The financial statements of EVRAZ plc (registered number
7784342) on pages 158-236 were approved by the Board of Directors
on 24 February 2021 and signed on its behalf by Alexander Frolov,
Chief Executive Officer.
31 December
------------------------------
Notes 20 20 2019 2018
-------------------------------------------------------------- ------ --------- --------- --------
ASSETS
Non-current assets
Property, plant and equipment 9 $ 4,31 4 $ 4,925 $ 4,202
Intangible assets other than goodwill 10 138 185 206
Goodwill 5 457 5 94 864
Investments in joint ventures and associates 11 79 92 74
Deferred income tax assets 8 24 5 152 92
Other non-current financial assets 13 26 40 91
Other non-current assets 13 45 55 44
-------------------------------------------------------------- ------ --------- --------- --------
5,304 6, 0 43 5,573
Current assets
Inventories 14 1,085 1,480 1,474
Trade and other receivables 15 378 534 835
Prepayments 80 93 113
Loans receivable - 32 29
Receivables from related parties 16 10 10 11
Income tax receivable 46 53 35
Other taxes recoverable 17 178 175 201
Other current financial assets 18 2 4 35
Cash and cash equivalents 19 1,627 1,423 1,067
-------------------------------------------------------------- ------ --------- --------- --------
3,406 3,804 3,800
Total assets $ 8,710 $ 9 ,847 $ 9,373
============================================================== ====== ========= ========= ========
EQUITY AND LIABILITIES
Equity
Equity attributable to equity holders of the parent entity
Issued capital 20 $ 75 $ 75 $ 75
Treasury shares 20 (1 54 ) (169) (196)
Additional paid-in capital 2,510 2,492 2,480
Revaluation surplus 109 109 110
Unrealised gains and losses 13,25 - - 6
Accumulated profits 2,187 2,217 3,026
Translation difference (3,936) (3,048) (3,820)
-------------------------------------------------------------- ------ --------- --------- --------
791 1,676 1,681
Non-controlling interests 32 129 252 257
-------------------------------------------------------------- ------ --------- --------- --------
920 1,928 1,938
Non-current liabilities
Long-term loans 22 3,759 4,599 4,186
Deferred income tax liabilities 8 253 352 258
Employee benefits 23 240 271 226
Provisions 24 272 321 222
Lease liabilities 25 57 83 -
Other long-term liabilities 25 102 40 38
4,683 5,666 4,930
Current liabilities
Trade and other payables 26 1,264 1,378 1,216
Contract liabilities 314 348 320
Short-term loans and current portion of long-term loans 22 1,078 140 377
Lease liabilities 25 30 34 -
Payables to related parties 16 38 19 122
Income tax payable 108 79 104
Other taxes payable 27 169 153 266
Provisions 24 41 33 35
Amounts payable under put options for shares in subsidiaries 4 65 69 65
-------------------------------------------------------------- ------ --------- --------- --------
3,107 2,253 2,505
Total equity and liabilities $ 8,710 $ 9,847 $ 9,373
============================================================== ====== ========= ========= ========
The accompanying notes form an integral part of these
consolidated financial statements.
onsolidated statement of cash flows
(in millions of US dollars)
Year ended 31 December
---------------------------
2020 2019 2018
----------------------------------------------------------------------------------------- --------- ------ --------
Cash flows from operating activities
Net profit $ 858 $ 365 $ 2,470
Adjustments to reconcile net profit to net cash flows from operating activities:
Deferred income tax (benefit)/expense (Note 8) (142) 5 48
Depreciation, depletion and amortisation (Note 7) 60 5 578 542
(Gain)/loss on disposal of property, plant and equipment, net 3 (3) 11
Impairment of non-financial assets 310 442 30
Foreign exchange (gains)/losses, net (408) 341 (361)
Interest income (6) (8) (18)
Interest expense 328 336 359
Share of (profits)/losses of associates and joint ventures (2) (9) (9)
Impairment of non-current financial assets - 56 -
(Gain)/loss on financial assets and liabilities, net 71 (17) (13)
(Gain)/loss on disposal groups classified as held for sale, net (1) (29) 10
Other non-operating (gains)/losses, net (14) (14) (2)
Allowance for expected credit losses (2) 3 (1)
Changes in provisions, employee benefits and other long-term assets and liabilities ( 17 ) - (16)
Expense arising from equity-settled awards (Note 21) 11 13 15
Other (1) (2) (2)
----------------------------------------------------------------------------------------- --------- ------ --------
1,5 93 2,057 3,063
Changes in working capital:
Inventories 250 61 (482)
Trade and other receivables 8 1 304 (128)
Prepayments 3 26 (48)
Receivables from/payables to related parties 5 (114) (58)
Taxes recoverable (30) 29 (24)
Other assets - (1) -
Trade and other payables (3 5 ) 219 108
Contract liabilities (1 3 ) 13 63
Taxes payable 84 (155) 148
Other liabilities (10) (9) (9)
----------------------------------------------------------------------------------------- --------- ------ --------
Net cash flows from operating activities 1,9 28 2,430 2,633
Cash flows from investing activities
Issuance of loans receivable to related parties (1) - (1)
Issuance of loans receivable (1) (9) (1)
Proceeds from repayment of loans receivable, including interest 1 2 2
Purchases of subsidiaries, net of cash acquired (Note 4) - (3) -
Purchases of disposal groups held for sale (Note 12) - (22) -
Investments in associates and joint ventures (Note 11) - (3) -
Sale of associates (Note 1 6 ) - 5 -
Proceeds from sale of other investments (Notes 18 and 13) - 32 92
Short-term deposits at banks, including interest 4 7 11
Purchases of property, plant and equipment and intangible assets (6 47 ) (762) (521)
Proceeds from disposal of property, plant and equipment 6 16 4
Proceeds from sale of disposal groups classified as held for sale, net of transaction
costs
(Note 12) 11 44 52
Dividends received (Notes 11 and 16) 1 9 6
Other investing activities, net 2 19 (22)
----------------------------------------------------------------------------------------- --------- ------ --------
Net cash flows used in investing activities (6 24 ) (665) (378)
========================================================================================= ========= ====== ========
Continued on the next page
The accompanying notes form an integral part of these
consolidated financial statements.
onsolidated statement of cash flows (continued)
(in millions of US dollars)
Year ended 31 December
---------------------------
2020 2019 2018
----------------------------------------------------------------------------------------- -------- -------- -------
Cash flows from financing activities
Purchases of non-controlling interests (Note 4) $ (66) $ (71) $ (24)
Payments for property, plant and equipment on deferred terms (10) - -
Payments for investments on deferred terms (Note 11) - (8) (11)
Dividends paid by the parent entity to its shareholders (Note 20) (872) (1,086) (1,556)
Dividends paid by the Group's subsidiaries to non-controlling shareholders (5) (5) (1)
Proceeds from bank loans and notes (Note 22) 1,218 2,805 1,412
Repayment of bank loans and notes, including interest (Note 22) (1,304) (3,035) (2,459)
Net proceeds from/(repayment of) bank overdrafts and credit lines, including interest
(Note
22) (25) 22 -
Restricted deposits at banks in respect of financing activities 1 - 12
Realised gains/(losses) on derivatives not designated as hedging instruments (Note 25) (11) 22 11
Realised gains/(losses) on hedging instruments (Note 25) - (23) 11
Payments under leases, including interest (Note 25) (33) (37) -
Other financing activities, net - 1 (1)
----------------------------------------------------------------------------------------- -------- -------- -------
Net cash flows used in financing activities (1,107) (1,415) (2,606)
Effect of foreign exchange rate changes on cash and cash equivalents 7 6 (48)
----------------------------------------------------------------------------------------- -------- -------- -------
Net increase/(decrease) in cash and cash equivalents 204 356 (399)
Cash and cash equivalents at the beginning of the year 1,423 1,067 1,466
Cash and cash equivalents at the end of the year $ 1,627 $ 1,423 $ 1,067
========================================================================================= ======== ======== =======
Supplementary cash flow information:
Cash flows during the year:
Interest paid $ (284) $ (283) $ (320)
Interest received 5 7 9
Income taxes paid (included in operating activities) (536) (581) (623)
The accompanying notes form an integral part of these
consolidated financial statements.
onsolidated statement of changes in equity
(in millions of US dollars)
Attributable to equity holders of the
parent entity
-------------------------------------------------------------------------------------------------------------------
Unrealised
Additional gains
Issued Treasury paid-in Revaluation and Accumulated Translation Non-controlling Total
capital shares capital surplus losses profits difference Total interests equity
At 31 December
2019 $ 75 $ (169) $ 2,492 $ 109 $ - $ 2,217 $ (3,048) $ 1,676 $ 252 $ 1,928
8 8 8
Net profit - - - - - 48 - 48 10 58
Other
comprehensive
income/(loss) - - - - - (1) (888) (889) (19) (908)
Total
comprehensive
income/(loss) ( (
for 8 41 50
the period - - - - - 47 (888) ) (9) )
Acquisition of
non-controlling
interests in
subsidiaries
(Note 4) - - 7 - - - - 7 (34) (27)
Change in
non-controlling
interests due
to
reorganisation
(Note
4) - - - - - 45 - 45 (45) -
Decrease in
non-controlling
interests due
to
put options
(Note
4) - - - - - (35) - (35) (30) (65)
Transfer of
treasury
shares to
participants
of the
Incentive
Plans (Notes 20
and
21) - 15 - - - (15) - - - -
Share-based
payments
(Note 21) - - 11 - - - - 11 - 11
Dividends
declared
by the parent
entity
to its
shareholders
(Note 20) - - - - - (872) - (872) - (872)
Dividends
declared
by the Group's
subsidiaries
to
non-controlling
shareholders - - - - - - - - (5) (5)
----------------- -------- --------- ----------- ------------ ----------- ------------ ------------ -------- ---------------- --------
$ $ $ $
At 31 December $ ( 154 $ 2,1 79 92
2020 75 ) 2 ,510 $ 109 $ - 87 $ (3,936) 1 $ 129 0
================= ======== ========= =========== ============ =========== ============ ============ ======== ================ ========
The accompanying notes form an integral part of these
consolidated financial statements.
onsolidated statement of changes in equity (continued)
(in millions of US dollars)
Attributable to equity holders of the
parent entity
-------------------------------------------------------------------------------------------------
Unrealised
Additional gains
Issued Treasury paid-in Revaluation and Accumulated Translation Non-controlling Total
capital shares capital surplus losses profits difference Total interests equity
At 31 December
2018 $ 75 $ (196) $ 2,480 $ 110 $ 6 $ 3,026 $ (3,820) $ 1,681 $ 257 $ 1,938
Net profit - - - - - 326 - 326 39 365
Other
comprehensive
income/(loss) - - - - (6) (14) 772 752 22 774
Reclassification
of revaluation
surplus
to accumulated
profits
in respect of the
disposed items of
property, plant
and equipment - - - (1) - 1 - - - -
Reclassification
of additional
paid-in
capital in
respect
of the disposed
subsidiaries - - (1) - - 1 - - - -
-------- --------- ----------- ------------ ----------- ------------ ------------ -------- ---------------- --------
Total
comprehensive
income/(loss) for
the period - - (1) (1) (6) 314 772 1,078 61 1,139
Acquisition of
non-controlling
interests in
subsidiaries
(Note 4) - - - - - (10) - (10) (61) (71)
Transfer of
treasury
shares to
participants
of the Incentive
Plans (Notes 20
and 21) - 27 - - - (27) - - - -
Share-based
payments
(Note 21) - - 13 - - - - 13 - 13
Dividends declared
by the parent
entity
to its
shareholders
(Note 20) - - - - - (1,086) - (1,086) - (1,086)
Dividends declared
by the Group's
subsidiaries
to
non-controlling
shareholders - - - - - - - - (5) (5)
------------------- -------- --------- ----------- ------------ ----------- ------------ ------------ -------- ---------------- --------
At 31 December
2019 $ 75 $ (169) $ 2,492 $ 109 $ - $ 2,217 $ (3,048) $ 1,676 $ 252 $ 1,928
=================== ======== ========= =========== ============ =========== ============ ============ ======== ================ ========
The accompanying notes form an integral part of these
consolidated financial statements.
onsolidated statement of changes in equity (continued)
(in millions of US dollars)
Attributable to equity holders of the parent
entity
-------------------------------------------------------------------------------------------------
Unrealised
Additional gains
Issued Treasury paid-in Revaluation and Accumulated Translation Non-controlling Total
capital shares capital surplus losses profits difference Total interests equity
At 31 December
2017 $ 1,507 $ (231) $ 2,500 $ 111 $ 39 $ 635 $ (2,777) $ 1,784 $ 242 $ 2,026
Net profit - - - - - 2,406 - 2,406 64 2,470
Other
comprehensive
income/(loss) - - - - 56 22 (1,043) (965) (27) (992)
Transfer of
realised
gains on sold
equity
instruments to
accumulated
profits (Note 13) - - - - (89) 89 - - - -
Reclassification
of revaluation
surplus
to accumulated
profits
in respect of the
disposed items of
property, plant
and equipment - - - (1) - 1 - - - -
Reclassification
of additional
paid-in
capital in
respect
of the disposed
subsidiaries - - (35) - - 35 - - - -
-------- --------- ----------- ------------ ----------- ------------ ------------ -------- ---------------- --------
Total
comprehensive
income/(loss) for
the period - - (35) (1) (33) 2,553 (1,043) 1,441 37 1,478
Reduction in par
value of shares
(Note 20) (1,432) - - - - 1,432 - - - -
Acquisition of
non-controlling
interests in
subsidiaries
(Note 4) - - - - - (3) - (3) (21) (24)
Transfer of
treasury
shares to
participants
of the Incentive
Plans (Notes 20
and 21) - 35 - - - (35) - - - -
Share-based
payments
(Note 21) - - 15 - - - - 15 - 15
Dividends declared
by the parent
entity
to its
shareholders
(Note 20) - - - - - (1,556) - (1,556) - (1,556)
Dividends declared
by the Group's
subsidiaries
to
non-controlling
shareholders - - - - - - - - (1) (1)
------------------- -------- --------- ----------- ------------ ----------- ------------ ------------ -------- ---------------- --------
At 31 December
2018 $ 75 $ (196) $ 2,480 $ 110 $ 6 $ 3,026 $ (3,820) $ 1,681 $ 257 $ 1,938
=================== ======== ========= =========== ============ =========== ============ ============ ======== ================ ========
The accompanying notes form an integral part of these
consolidated financial statements.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
FR DKPBQABKKCBB
(END) Dow Jones Newswires
February 25, 2021 02:00 ET (07:00 GMT)
Evraz (LSE:EVR)
Historical Stock Chart
From Mar 2024 to Apr 2024
Evraz (LSE:EVR)
Historical Stock Chart
From Apr 2023 to Apr 2024
