Prospects in metallurgy May 2021
PAO & quot; # Severstal" – one of the largest vertically integrated steel and mining companies with assets in Russia and abroad. The group accounts for about 16% the volume of steel production in the country. The company ranks among the most efficient manufacturers with the lowest production costs in the industry.. The company maintains a low level of debt burden and a high level of quarterly dividend payments.
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In the final products of Severstal" more 40% refers to products with high added value. The bulk of the group's sales falls on the Russian Federation market. Proximity to commercial ports allows you to effectively diversify export sales directions.
Market Trends. Global steel production quickly overcame the pandemic recession, mainly due to China, which ramped up production, while in a number of regions there was a noticeable decrease. Fast pace of recovery in Q4. 2020 G. and 1 sq.. 2021 G. poured into that, what's in march 2021 G. world steel production reaches record highs in history – 169,2 mln t. Average daily steel production in March was 5,458 mln t, out of which 3,033 million tons fell on China.
Finance. Severstal Group" published strong operating and financial statements for Q1. 2021 G. The consolidated revenue of the company increased not only in relation to the same period last year (+27,5%), but also in comparison with the quite successful 4th quarter. 2020 G. (+28,8%) and made $ 2,22 billion.
EBITDA more than doubled YoY and grew more than 1.5 times QoQ, to level $ 1,16 billion. EBITDA margin – 52,4%. Net profit increased by 86,8% in the quarter and in 10 times YoY – to $ 721 million. & quot; Severstal" generated free cash flow for the reporting period in the amount of $ 497 million, growth in 1,3 quarterly and 9,2 times in annual comparison.
Dividends. The company has maintained a double-digit annual dividend yield on its shares for several years now.. Based on the results of four quarters 2018 G. Severstal shareholders" received in aggregate 160,73 rub. per share. Based on the results of 2019 G. #the total dividend was 115,88 rub. per share. For three neighborhoods 2020 G. shareholders received dividends in the amount of 27,35 rub., on 15,44 rub. and by 37,34 rub. per share respectively.
Based on the results of the 4th quarter 2020 G. the board of directors recommended to pay 36,27 rub. per share, and at the end of the 1st quarter. 2021 G. – on 46,77 rub. per share. Both of these recommendations must be approved by the shareholders meeting. 21 May 2021 G.
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