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Evraz shares rise on fourth quarter production numbers
30th Jan 2020 08:12
(Sharecast News) - Evraz updated the market on its trading for the fourth quarter and 2019 full year on Thursday, reporting that in the final quarter of the year, its consolidated crude steel output rose by 2.1% quarter-on-quarter.
The FTSE 100 company put that down to higher production volumes at Evraz ZSMK, after scheduled capital repairs during July and August ended.
It said steel product sales climbed by 6.6% quarter-on-quarter, driven primarily by semi-finished products, which grew 17.7%.
"This, in turn, was mainly a result of higher steel production at Evraz ZSMK and seasonally weaker market demand for finished construction products in Russia," the board said in its statement.
In addition, sales of railway products in Russia grew 17.8% following the completion of capital repairs at Evraz ZSMK's rail and beam shop in the third quarter.
Total raw coking coal production decreased 5.3% quarter-on-quarter due to lower production volumes, amid a scheduled longwall move at the Raspadskaya mine in the fourth quarter.
Coking coal concentrate production dropped 16.7% quarter-on-quarter due to softer market demand.
Evraz said external sales volumes of coking coal products fell by 14.9% quarter-on-quarter, due to lower market demand.
External sales of iron ore products surged 68.5% quarter-on-quarter, following the completion of capital repairs of Evraz KGOK's roasting machines during August and September.
Sales of vanadium final products were down by 2.0% quarter-on-quarter, which the board put down to lower FeV demand, primarily from North American steel producers amid reduced utilisation rates.
Looking at 2019 as a whole, Evraz said its consolidated crude steel production climbed 6.1% year-on-year, mainly due to higher production volumes of pig iron at Evraz ZSMK as blast furnace three underwent a "lengthier and more complex process" of capital repair in 2018, compared to blast furnace one in 2019.
Sales volumes of semi-finished products jumped 22.8% year-on-year, mainly due to higher semi-finished product sales from Russia to export markets amid greater production volumes, and a sharp increase of slab sales in North America amid greater demand from customers.
Production of raw coking coal grew 8.1% year-on-year due to higher production volumes at the Osinnikovskaya, Erunakovskaya and Uskovskaya mines, driven by improvements in capital repairs and equipment maintenance.
External iron ore product sales fell 42.5% year-on-year, primarily as a result of higher consumption of pellets in 2019 by Evraz NTMK after the launch of blast furnace seven in the second quarter of 2018, and by Evraz ZSMK amid higher pig iron production.
The FTSE 100 company put that down to higher production volumes at Evraz ZSMK, after scheduled capital repairs during July and August ended.
It said steel product sales climbed by 6.6% quarter-on-quarter, driven primarily by semi-finished products, which grew 17.7%.
"This, in turn, was mainly a result of higher steel production at Evraz ZSMK and seasonally weaker market demand for finished construction products in Russia," the board said in its statement.
In addition, sales of railway products in Russia grew 17.8% following the completion of capital repairs at Evraz ZSMK's rail and beam shop in the third quarter.
Total raw coking coal production decreased 5.3% quarter-on-quarter due to lower production volumes, amid a scheduled longwall move at the Raspadskaya mine in the fourth quarter.
Coking coal concentrate production dropped 16.7% quarter-on-quarter due to softer market demand.
Evraz said external sales volumes of coking coal products fell by 14.9% quarter-on-quarter, due to lower market demand.
External sales of iron ore products surged 68.5% quarter-on-quarter, following the completion of capital repairs of Evraz KGOK's roasting machines during August and September.
Sales of vanadium final products were down by 2.0% quarter-on-quarter, which the board put down to lower FeV demand, primarily from North American steel producers amid reduced utilisation rates.
Looking at 2019 as a whole, Evraz said its consolidated crude steel production climbed 6.1% year-on-year, mainly due to higher production volumes of pig iron at Evraz ZSMK as blast furnace three underwent a "lengthier and more complex process" of capital repair in 2018, compared to blast furnace one in 2019.
Sales volumes of semi-finished products jumped 22.8% year-on-year, mainly due to higher semi-finished product sales from Russia to export markets amid greater production volumes, and a sharp increase of slab sales in North America amid greater demand from customers.
Production of raw coking coal grew 8.1% year-on-year due to higher production volumes at the Osinnikovskaya, Erunakovskaya and Uskovskaya mines, driven by improvements in capital repairs and equipment maintenance.
External iron ore product sales fell 42.5% year-on-year, primarily as a result of higher consumption of pellets in 2019 by Evraz NTMK after the launch of blast furnace seven in the second quarter of 2018, and by Evraz ZSMK amid higher pig iron production.