Consolidated revenue
– 312.6
bln rubles (+5% compared to
FY2017)EBITDA* –
75.7 bln rubles (-7% compared to
FY2017)Profit attributable to equity shareholders
of Mechel PAO – 12.6
bln rubles
Mechel PAO (MOEX: MTLR, NYSE: MTL), a leading Russian
mining and steel group, announces financial results for the FY
2018.
Mechel PAO’s Chief Executive Officer Oleg
Korzhov commented:“The Group finished the year 2018 with a
year-on-year 5% increase in revenue and 9% increase in profit
attributable to equity shareholders of Mechel PAO. EBITDA went down
by 7% year-on-year.“The revenue growth was due to positive price
dynamics in steel and steelmaking commodity markets. EBITDA
went down year-on-year because of a decline in the mining
division’s product sale volumes due to railcar shortages in the
second half of 2018 and the corresponding shift in the division’s
focus to overcome the underrun of resource preparation for future
mining. This decision enabled us to decrease accumulated product
stocks and increase stripping works, which will have positive
effect in the future. The negative impact of the decline in
shipment volumes was partly made up by the favorable market
situation, which enabled us to sell metallurgical coal at average
prices exceeding levels of 2017.“I would like to note another
important event — by early 2019 we successfully refinanced our
one-billion-dollar syndicated loan, which yielded extra finance
income to the Group. Also, in 2018 our lenders wrote off 17.5
billion rubles in fines and penalties, which reduced our debt and
had a positive impact on our profit for this period, which grew
year-on-year even as we take into account the major negative effect
from the ruble’s depreciation.”
Consolidated Results For The Full Year
2018
Mln rubles |
FY 2018 |
|
FY 2017 |
|
% |
|
4Q’ 18 |
|
3Q’ 18 |
|
% |
|
Revenuefrom contracts with external customers |
312,574 |
|
299,113 |
|
5% |
|
75,571 |
|
79,965 |
|
-5% |
|
Operating profit |
49,780 |
|
57,167 |
|
-13% |
|
1,978 |
|
15,161 |
|
-87% |
|
EBITDA |
75,667 |
|
81,106 |
|
-7% |
|
15,021 |
|
19,206 |
|
-22% |
|
EBITDA, margin |
24% |
|
27% |
|
|
|
20% |
|
24% |
|
|
|
Profitattributable to equity shareholders of
Mechel PAO |
12,628 |
|
11,557 |
|
9% |
|
1,631 |
|
6,304 |
|
-74% |
|
Mechel PAO’s Chief Financial Officer Nelli
Galeeva commented:“Consolidated EBITDA in 2018 amounted to 75.7
billion rubles, which is 7% less than in 2017. Profit attributable
to equity shareholders of Mechel PAO grew by 9% year-on-year, due
to increase in revenue as well as finance income from the write-off
of fines and penalties, which resulted from our fulfilling the
conditions of our debt’s restructuring by Russian state-owned
banks, and which totaled 17.5 billion rubles, as well as 13 billion
rubles from restructuring the pre-export syndicated loan.“Our
finance expenses went down by 5.6 billion rubles, or 12%,
year-on-year due to decrease of the Bank of Russia key interest
rate as well as the Group’s efforts to restructure debt and
decrease debt costs. In 2018, our operating cash flow went up by
4.8 billion rubles to reach 68.1 billion, which is sufficient to
ensure the Group’s key operational needs and fulfilling our loan
obligations in full.“In mining segment, revenue from sales to third
parties in 2018 amounted to 96.9 billion rubles, which is 3% less
than in 2017 (100.1 billion rubles). This effect is due to the
decrease in coal product sale volumes that was partially made up
for by the growth of both global and domestic prices. The
division’s operating profit’s decline by 32% and EBITDA’s 26%
decrease year-on-year was largely due to the slump in sales volume
while production costs went up as we significantly increased
stripping volumes necessary to restore and step up production.“The
favorable global trend of growing prices for our steel segment’s
products continued its positive impact on the division’s results.
This trend led to a 9% increase in revenue from third-party sales
in this reporting period. In 2018 the segment profit attributable
to equity shareholders of Mechel PAO amounted to 693 million
rubles, as compared to 2017 recorded loss of 4.5 billion
rubles.”
Mining Segment
Mechel Mining Management OOO’s Chief Executive
Officer Pavel Shtark noted:“In the past year, the division focused
on overcome the underrun of resource preparation for mining in
order to restore our production and sales volumes. Stripping works
on all the Group’s coal-mining assets went up by 25% year-on-year
and more than by one and a half at Korshunov Mining Plant. We
achieved this due to the technical upgrade program as well as
bringing in contractors.“Several of the division’s assets corrected
their plans and decreased mining in late 2018 and early 2019 due to
massive accumulated undistributed stock as a consequence of
limitations in railcars supply. On one hand, it led to a decline in
mining, but on the other enabled us to unload storages and optimize
production and equipment repair costs, which are traditionally high
in winter due to extremely low temperatures.“This year the
division’s assets will continue to renew their mining fleet. The
contractors we have brought in to work at our assets also increase
the number of machines involved in mining works. Considering the
major work we have done last year to prepare reserves for mining,
we expect our output to grow this year. The persistently high
prices on the mining division’s products will also help us improve
our financial results.”
Mln rubles |
FY 2018 |
|
FY 2017 |
|
% |
|
4Q’ 18 |
|
3Q’ 18 |
|
% |
|
Revenue from contracts with external
customers |
96,882 |
|
100,129 |
|
-3% |
|
23,566 |
|
24,916 |
|
-5% |
|
Revenueinter-segment |
37,549 |
|
42,286 |
|
-11% |
|
9,089 |
|
9,415 |
|
-3% |
|
EBITDA |
45,516 |
|
61,425 |
|
-26% |
|
8,934 |
|
11,691 |
|
-24% |
|
EBITDA, margin |
34% |
|
43% |
|
|
|
27% |
|
34% |
|
|
|
Steel Segment
Mechel-Steel Management Company OOO’s Chief
Executive Officer Andrey Ponomarev noted:“In 2018, market situation
helped us significantly improve the division’s financial results as
compared to 2017. At the same time, in this reporting period there
were factors that capped the dynamics of our results. Last year’s
extensive repair program led to a compelled decline in steel
product sales. Still, we redirected output to favor more high
value-added products.“This year, planned repairs and overhauls at
the division’s facilities will continue. Also, we are launching new
production lines and upgrading current ones which will enable us to
expand our product range. Beloretsk Metallurgical Plant continues
to master production of new types of multi-strand wire ropes,
including polymer-coated ones. Izhstal is expanding the range of
its circular-section long products, increasing production of
hot-rolled steel with surface finishing, as well as working on a
new assortment of low-tonnage castings. Chelyabinsk Metallurgical
Plant is planning to upgrade its rolling mills to produce
heat-hardened rebar, and to launch a series of measures to improve
the plant’s ecological safety.”
Mln rubles |
FY 2018 |
|
FY 2017 |
|
% |
|
4Q’ 18 |
|
3Q’ 18 |
|
% |
|
Revenue from contracts with external
customers |
187,918 |
|
172,760 |
|
9% |
|
44,076 |
|
49,460 |
|
-11% |
|
Revenueinter-segment |
5,865 |
|
7,622 |
|
-23% |
|
1,654 |
|
1,256 |
|
32% |
|
EBITDA |
27,990 |
|
18,817 |
|
49% |
|
6,030 |
|
7,476 |
|
-19% |
|
EBITDA, margin |
14% |
|
10% |
|
|
|
13% |
|
15% |
|
|
|
Power Segment
Mechel Energo OOO’s Chief Executive Officer Petr
Pashnin noted:“The six-percent growth in the division’s sales
revenue year-on-year was due to an increase in electricity sales on
both the wholesale and retail markets. The growth of prices on the
capacity market also had a positive impact on our revenue. At the
same time, the scaling up in expenses on materials and higher
transmission costs led to an increase in production costs which
reflected in the decline of EBITDA and EBITDA margin
year-on-year.”
Mln rubles |
FY 2018 |
|
FY 2017 |
|
% |
|
4Q’ 18 |
|
3Q’ 18 |
|
% |
|
Revenue from contracts with external
customers |
27,774 |
|
26,224 |
|
6% |
|
7,929 |
|
5,589 |
|
42% |
|
Revenueinter-segment |
15,471 |
|
16,338 |
|
-5% |
|
4,298 |
|
3,552 |
|
21% |
|
EBITDA |
1,546 |
|
2,308 |
|
-33% |
|
166 |
|
180 |
|
-8% |
|
EBITDA, margin |
4% |
|
5% |
|
|
|
1% |
|
2% |
|
|
|
Alexey LukashovDirector of Investor
RelationsMechel PAOPhone: 7-495-221-88-88Fax:
7-495-221-88-00alexey.lukashov@mechel.com
Mechel is an international mining and steel
company. Its products are marketed in Europe, Asia, North and South
America, Africa. Mechel unites producers of coal, iron ore
concentrate, steel, rolled products, ferroalloys, heat and electric
power. All of its enterprises work in a single production chain,
from raw materials to high value-added products.
Some of the information in this press release
may contain projections or other forward-looking statements
regarding future events or the future financial performance of
Mechel, as defined in the safe harbor provisions of the U.S.
Private Securities Litigation Reform Act of 1995. We wish to
caution you that these statements are only predictions and that
actual events or results may differ materially. We do not intend to
update these statements. We refer you to the documents Mechel files
from time to time with the U.S. Securities and Exchange Commission,
including our Form 20-F. These documents contain and identify
important factors, including those contained in the section
captioned “Risk Factors” and “Cautionary Note Regarding
Forward-Looking Statements” in our Form 20-F, that could cause the
actual results to differ materially from those contained in our
projections or forward-looking statements, including, among others,
the achievement of anticipated levels of profitability, growth,
cost and synergy of our 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 our shares or ADRs, financial risk
management and the impact of general business and global economic
conditions.
Attachments to the FY 2018 Earnings Press
Release
Attachment A
Non-IFRS financial measures. This press release
includes financial information prepared in accordance with
International Financial Reporting Standards, or IFRS, as well as
other financial measures referred to as non-IFRS. The non-IFRS
financial measures should be considered in addition to, but not as
a substitute for the information prepared in accordance with
IFRS.
Adjusted EBITDA (EBITDA) represents profit
(loss) attributable to equity shareholders of Mechel PAO before
Depreciation and amortisation, Foreign exchange (gain) loss, net,
Finance costs including fines and penalties on overdue loans and
borrowings and finance lease payments, Finance income, Net result
on the disposal of non-current assets, Impairment of goodwill and
other non-current assets, Write-off of trade and other receivables,
Allowance for expected credit losses on financial assets, Provision
(reversal of provision) for doubtful accounts, Write-off of
inventories to net realisable value, Net result on the disposal of
subsidiaries, Profit (loss) attributable to non-controlling
interests, Income tax expense (benefit), Effect of pension
obligations, Other fines and penalties, Gain on restructuring and
forgiveness of trade and other payables and write-off of trade and
other payables with expired legal term and Other one-off items.
Adjusted EBITDA margin is defined as adjusted EBITDA as a
percentage of our Revenue. Our adjusted EBITDA may not be similar
to EBITDA measures of other companies. Adjusted EBITDA is not a
measurement under IFRS and should be considered in addition to, but
not as a substitute for the information contained in our
consolidated statement of profit (loss) and other comprehensive
income. We believe that our adjusted EBITDA provides useful
information to investors because it is an indicator of the strength
and performance of our ongoing business operations, including our
ability to fund discretionary spending such as capital
expenditures, acquisitions and other investments and our ability to
incur and service debt. While depreciation, amortisation and
impairment of goodwill and other non-current assets are considered
operating expenses under IFRS, these expenses primarily represent
the non-cash current period allocation of costs associated with
non-current assets acquired or constructed in prior periods. Our
adjusted EBITDA calculation is commonly used as one of the bases
for investors, analysts and credit rating agencies to evaluate and
compare the periodic and future operating performance and value of
companies within the metals and mining industry.
Our calculation of Net debt, excluding fines and
penalties on overdue amounts** is presented below:
Mln rubles |
31.12.2018 |
|
31.12.2017 |
|
Loans and borrowings,
excluding interest payable, fines and penalties on overdue
amounts |
402,417 |
|
380,541 |
|
Interest payable |
7,749 |
|
20,420 |
|
Non-current loans and
borrowings |
6,538 |
|
17,360 |
|
Other non-current
financial liabilities |
44,510 |
|
40,916 |
|
Other current financial
liabilities |
- |
|
734 |
|
less Cash and cash
equivalents |
(1,803 |
) |
(2,452 |
) |
Net debt, excluding finance lease liabilities, fines and
penalties on overdue amounts |
459,411 |
|
457,519 |
|
|
|
|
Current finance lease
liabilities |
5,880 |
|
7,476 |
|
Non-current finance
lease liabilities |
2,413 |
|
1,878 |
|
Net debt, excluding fines and penalties on overdue
amounts |
467,704 |
|
466,873 |
|
EBITDA can be reconciled to our consolidated
statement of profit (loss) and other comprehensive income as
follows:
|
Consolidated Results |
|
Mining
Segment*** |
|
Steel Segment*** |
|
Power Segment*** |
Mln rubles |
12m 2018 |
12m 2017 |
|
12m 2018 |
12m 2017 |
|
12m 2018 |
12m 2017 |
|
12m 2018 |
12m 2017 |
Profit (loss)
attributable to equity shareholders of Mechel PAO |
12,628 |
|
11,557 |
|
|
11,304 |
|
16,801 |
|
|
693 |
|
(4,533 |
) |
|
(2,631 |
) |
39 |
|
Add: |
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortisation |
13,859 |
|
14,227 |
|
|
7,621 |
|
7,979 |
|
|
5,738 |
|
5,800 |
|
|
500 |
|
448 |
|
Foreign
exchange loss (gain), net |
25,775 |
|
(4,237 |
) |
|
10,771 |
|
(4,379 |
) |
|
14,969 |
|
144 |
|
|
37 |
|
(2 |
) |
Finance
costs including fines and penalties on overdue loans and borrowings
and finance leases payments |
42,052 |
|
47,610 |
|
|
29,153 |
|
34,546 |
|
|
13,825 |
|
14,136 |
|
|
581 |
|
880 |
|
Finance
income |
(34,056 |
) |
(633 |
) |
|
(24,458 |
) |
(1,810 |
) |
|
(9,874 |
) |
(717 |
) |
|
(1,231 |
) |
(57 |
) |
Net
result on the disposal of non-current assets, impairment of
goodwill and other non-current assets, write-off of trade and other
receivables, allowance for expected credit losses on financial
assets, provision (reversal of provision) for doubtful accounts and
write-off of inventories to net realisable value |
10,146 |
|
7,334 |
|
|
4,796 |
|
4,443 |
|
|
1,846 |
|
2,406 |
|
|
3,504 |
|
486 |
|
Net
result on the disposal of subsidiaries |
(3 |
) |
(470 |
) |
|
(3 |
) |
(470 |
) |
|
- |
|
- |
|
|
- |
|
- |
|
Profit
attributable to non-controlling interests |
908 |
|
1,013 |
|
|
183 |
|
407 |
|
|
637 |
|
417 |
|
|
87 |
|
189 |
|
Income
tax expense (benefit) |
2,681 |
|
3,150 |
|
|
5,940 |
|
3,410 |
|
|
(531 |
) |
203 |
|
|
(83 |
) |
229 |
|
Effect of pension
obligations |
548 |
|
(33 |
) |
|
515 |
|
(58 |
) |
|
30 |
|
22 |
|
|
4 |
|
3 |
|
Other fines and penalties |
1,554 |
|
2,551 |
|
|
(15 |
) |
941 |
|
|
788 |
|
1,512 |
|
|
781 |
|
98 |
|
Gain on
restructuring and forgiveness of trade and other payables and
write-off of trade and other payables with expired legal term |
(425 |
) |
(963 |
) |
|
(291 |
) |
(385 |
) |
|
(131 |
) |
(573 |
) |
|
(3 |
) |
(5 |
) |
EBITDA |
75,667 |
|
81,106 |
|
|
45,516 |
|
61,425 |
|
|
27,990 |
|
18,817 |
|
|
1,546 |
|
2,308 |
|
EBITDA,
margin |
24% |
|
27% |
|
|
34% |
|
43% |
|
|
14% |
|
10% |
|
|
4% |
|
5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Results |
|
Mining
Segment*** |
|
Steel Segment*** |
|
Power Segment*** |
Mln rubles |
4q 2018 |
3q 2018 |
|
4q 2018 |
3q 2018 |
|
4q 2018 |
3q 2018 |
|
4q 2018 |
3q 2018 |
Profit (loss)
attributable to equity shareholders of Mechel PAO |
1,631 |
|
6,304 |
|
|
918 |
|
9,102 |
|
|
75 |
|
(1,055 |
) |
|
(2,996 |
) |
(278 |
) |
Add: |
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortisation |
3,700 |
|
3,168 |
|
|
1,919 |
|
1,786 |
|
|
1,651 |
|
1,262 |
|
|
130 |
|
120 |
|
Foreign
exchange loss (gain), net |
7,171 |
|
7,024 |
|
|
(696 |
) |
3,675 |
|
|
7,845 |
|
3,353 |
|
|
23 |
|
(4 |
) |
Finance
costs including fines and penalties on overdue loans and borrowings
and finance leases payments |
10,323 |
|
10,284 |
|
|
6,447 |
|
6,839 |
|
|
4,093 |
|
3,695 |
|
|
169 |
|
131 |
|
Finance
income |
(13,495 |
) |
(12,698 |
) |
|
(5,368 |
) |
(12,920 |
) |
|
(8,065 |
) |
(148 |
) |
|
(448 |
) |
(12 |
) |
Net
result on the disposal of non-current assets, impairment of
goodwill and other non-current assets, write-off of trade and other
receivables, allowance for expected credit losses on financial
assets, provision (reversal of provision) for doubtful accounts and
write-off of inventories to net realisable value |
7,889 |
|
721 |
|
|
3,929 |
|
391 |
|
|
1,192 |
|
142 |
|
|
2,768 |
|
188 |
|
Net
result on the disposal of subsidiaries |
(3 |
) |
310 |
|
|
- |
|
- |
|
|
(3 |
) |
310 |
|
|
- |
|
- |
|
Profit
(loss) attributable to non-controlling interests |
(25 |
) |
346 |
|
|
(42 |
) |
140 |
|
|
53 |
|
193 |
|
|
(37 |
) |
13 |
|
Income
tax (benefit) expense |
(3,507 |
) |
3,723 |
|
|
1,395 |
|
2,773 |
|
|
(966 |
) |
(388 |
) |
|
(192 |
) |
17 |
|
Effect of pension
obligations |
440 |
|
37 |
|
|
427 |
|
29 |
|
|
12 |
|
6 |
|
|
1 |
|
1 |
|
Other fines and penalties |
952 |
|
293 |
|
|
35 |
|
114 |
|
|
168 |
|
173 |
|
|
749 |
|
5 |
|
Gain on
restructuring and forgiveness of trade and other payables and
write-off of trade and other payables with expired legal term |
(55 |
) |
(306 |
) |
|
(30 |
) |
(238 |
) |
|
(25 |
) |
(67 |
) |
|
(1 |
) |
(1 |
) |
EBITDA |
15,021 |
|
19,206 |
|
|
8,934 |
|
11,691 |
|
|
6,030 |
|
7,476 |
|
|
166 |
|
180 |
|
EBITDA,
margin |
20% |
|
24% |
|
|
27% |
|
34% |
|
|
13% |
|
15% |
|
|
1% |
|
2% |
|
*** including
inter-segment operations |
|
|
|
|
|
|
|
|
|
|
|
Income tax, deferred tax related to the consolidated group of
taxpayers and certain other assets and liabilities are not
allocated to segments as they are managed on the group basis.
Attachment B
CONSOLIDATED STATEMENT OF PROFIT (LOSS) AND
OTHER COMPREHENSIVE INCOME for the year ended December 31,
2018 |
(All amounts are in
millions of Russian rubles, unless stated otherwise) |
|
Year endedDecember 31, |
|
Year endedDecember 31, |
|
|
2018 |
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
Revenue from contracts
with customers |
|
312,574 |
|
|
299,113 |
|
Cost of sales |
|
(177,756 |
) |
|
(160,356 |
) |
Gross
profit |
|
134,818 |
|
|
138,757 |
|
|
|
|
|
|
Selling and
distribution expenses |
|
(54,988 |
) |
|
(55,686 |
) |
Loss on write-off of
non-current assets |
|
(859 |
) |
|
(321 |
) |
Impairment of goodwill
and other non-current assets |
|
(7,222 |
) |
|
(6,081 |
) |
Allowance for expected
credit losses on financial assets |
|
(940 |
) |
|
(332 |
) |
Taxes other than income
taxes |
|
(4,834 |
) |
|
(4,967 |
) |
Administrative and
other operating expenses |
|
(17,906 |
) |
|
(15,590 |
) |
Other operating
income |
|
1,711 |
|
|
1,387 |
|
Total selling,
distribution and operating income and (expenses), net |
|
(85,038 |
) |
|
(81,590 |
) |
Operating
profit |
|
49,780 |
|
|
57,167 |
|
|
|
|
|
|
Finance income |
|
34,056 |
|
|
633 |
|
Finance costs including
fines and penalties on overdue loans and borrowings and finance
leases payments |
|
(42,052 |
) |
|
(47,610 |
) |
Foreign exchange gain
(loss), net |
|
(25,775 |
) |
|
4,237 |
|
Share of profit (loss)
of associates, net |
|
10 |
|
|
18 |
|
Other income |
|
512 |
|
|
1,495 |
|
Other expenses |
|
(314 |
) |
|
(220 |
) |
Total other
income and (expense), net |
|
(33,563 |
) |
|
(41,447 |
) |
Profit before
tax |
|
16,217 |
|
|
15,720 |
|
|
|
|
|
|
Income tax expense |
|
(2,681 |
) |
|
(3,150 |
) |
Profit for the
period |
|
13,536 |
|
|
12,570 |
|
|
|
|
|
|
Attributable
to: |
|
|
|
|
Equity shareholders of
Mechel PAO |
|
12,628 |
|
|
11,557 |
|
Non-controlling
interests |
|
908 |
|
|
1,013 |
|
|
|
|
|
|
Other
comprehensive income |
|
|
|
|
Other comprehensive
(loss) income that may be reclassified to profit or loss in
subsequent periods, net of income tax: |
|
(9 |
) |
|
313 |
|
Exchange differences on
translation of foreign operations |
|
(9 |
) |
|
313 |
|
Other comprehensive
income not to be reclassified to profit or loss in subsequent
periods, net of income tax: |
|
487 |
|
|
145 |
|
Re-measurement of
defined benefit plans |
|
487 |
|
|
145 |
|
Other
comprehensive income for the period, net of tax |
|
478 |
|
|
458 |
|
|
|
|
|
|
Total
comprehensive income (loss) for the period, net of
tax |
|
14,014 |
|
|
13,028 |
|
|
|
|
|
|
Attributable
to: |
|
|
|
|
Equity shareholders of
Mechel PAO |
|
13,096 |
|
|
12,012 |
|
Non-controlling
interests |
|
918 |
|
|
1,016 |
|
|
|
|
|
|
Earnings per
share |
|
|
|
|
Weighted average number
of common shares |
|
416,270,745 |
|
|
416,270,745 |
|
Basic and diluted,
profit for the period attributable to common equity shareholders of
Mechel PAO |
|
30.34 |
|
|
27.76 |
|
CONSOLIDATED STATEMENT OF FINANCIAL POSITION as
of December 31, 2018 |
(All amounts are in millions of Russian rubles) |
|
|
December 31, 2018 |
|
December 31, 2017 |
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
Non-current
assets |
|
|
|
|
Property, plant and
equipment |
|
189,879 |
|
|
197,875 |
|
Mineral licenses |
|
32,068 |
|
|
33,240 |
|
Goodwill and other
intangible assets |
|
16,883 |
|
|
19,211 |
|
Investments in
associates |
|
293 |
|
|
283 |
|
Deferred tax
assets |
|
5,488 |
|
|
96 |
|
Other non-current
assets |
|
630 |
|
|
758 |
|
Non-current financial
assets |
|
244 |
|
|
202 |
|
Total
non-current assets |
|
245,485 |
|
|
251,665 |
|
|
|
|
|
|
Current
assets |
|
|
|
|
Inventories |
|
43,423 |
|
|
37,990 |
|
Income tax
receivables |
|
121 |
|
|
107 |
|
Trade and other
receivables |
|
17,612 |
|
|
18,762 |
|
Other current
assets |
|
8,673 |
|
|
7,589 |
|
Other current financial
assets |
|
508 |
|
|
562 |
|
Cash and cash
equivalents |
|
1,803 |
|
|
2,452 |
|
Total current
assets |
|
72,140 |
|
|
67,462 |
|
|
|
|
|
|
Total
assets |
|
317,625 |
|
|
319,127 |
|
|
|
|
|
|
Equity and
liabilities |
|
|
|
|
Equity |
|
|
|
|
Common shares |
|
4,163 |
|
|
4,163 |
|
Preferred shares |
|
833 |
|
|
833 |
|
Additional paid-in
capital |
|
24,378 |
|
|
24,378 |
|
Accumulated other
comprehensive income |
|
1,771 |
|
|
1,303 |
|
Accumulated
deficit |
|
(274,186 |
) |
|
(283,743 |
) |
Equity
attributable to equity shareholders of Mechel PAO |
|
(243,041 |
) |
|
(253,066 |
) |
Non-controlling
interests |
|
9,846 |
|
|
8,933 |
|
Total
equity |
|
(233,195 |
) |
|
(244,133 |
) |
|
|
|
|
|
Non-current
liabilities |
|
|
|
|
Loans and
borrowings |
|
6,538 |
|
|
17,360 |
|
Finance lease
liabilities |
|
2,413 |
|
|
1,878 |
|
Other non-current
financial liabilities |
|
44,510 |
|
|
40,916 |
|
Other non-current
liabilities |
|
120 |
|
|
138 |
|
Pension
obligations |
|
3,819 |
|
|
3,512 |
|
Provisions |
|
3,719 |
|
|
3,814 |
|
Deferred tax
liabilities |
|
13,506 |
|
|
11,494 |
|
Total
non-current liabilities |
|
74,625 |
|
|
79,112 |
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
Loans and borrowings,
including interest payable, fines and penalties on overdue amounts
of RUB 9,877 million and RUB 41,992 million as of December 31, 2018
and 2017, respectively |
|
412,294 |
|
|
422,533 |
|
Trade and other
payables |
|
34,800 |
|
|
33,469 |
|
Finance lease
liabilities |
|
5,880 |
|
|
7,476 |
|
Income tax payable |
|
6,425 |
|
|
4,578 |
|
Taxes and similar
charges payable other than income tax |
|
6,106 |
|
|
6,696 |
|
Advances received |
|
5,028 |
|
|
4,385 |
|
Other current financial
liabilities |
|
- |
|
|
734 |
|
Other current
liabilities |
|
68 |
|
|
69 |
|
Pension
obligations |
|
772 |
|
|
849 |
|
Provisions |
|
4,822 |
|
|
3,359 |
|
Total current
liabilities |
|
476,195 |
|
|
484,148 |
|
|
|
|
|
|
Total
liabilities |
|
550,820 |
|
|
563,260 |
|
Total equity
and liabilities |
|
317,625 |
|
|
319,127 |
|
|
|
|
|
|
CONSOLIDATED STATEMENT OF CASH FLOWS for the
year ended December 31, 2018 |
(All amounts are in millions of Russian rubles) |
|
|
Year ended December 31, |
|
Year ended December 31, |
|
|
2018 |
|
2017 |
|
|
|
|
|
Cash flows from
operating activities |
|
|
|
|
Profit for the
period |
|
13,536 |
|
|
12,570 |
|
Adjustments to
reconcile profit to net cash provided by operating activities: |
|
|
|
|
Depreciation of
property, plant and equipment |
|
12,454 |
|
|
12,555 |
|
Amortisation of mineral
licenses and other intangible assets |
|
1,405 |
|
|
1,672 |
|
Foreign exchange (gain)
loss, net |
|
25,775 |
|
|
(4,237 |
) |
Deferred income tax
(benefit) expense |
|
(2,596 |
) |
|
(3,401 |
) |
Allowance for expected
credit losses on financial assets |
|
940 |
|
|
332 |
|
Write-off of trade and
other receivables |
|
2 |
|
|
109 |
|
Write-off of
inventories to net realisable value |
|
1,162 |
|
|
470 |
|
Revision in estimated
cash flows of rehabilitation provision |
|
(38 |
) |
|
- |
|
Loss on write-off of
non-current assets |
|
859 |
|
|
321 |
|
Impairment of goodwill
and other non-current assets |
|
7,222 |
|
|
6,081 |
|
Net result from
disposal of non-current assets |
|
(128 |
) |
|
21 |
|
Gain on sale of
investments |
|
- |
|
|
(2 |
) |
Gain on restructuring
and forgiveness of trade and other payables and write-off of trade
and other payables with expired legal term |
|
(425 |
) |
|
(963 |
) |
Effect of pension
obligations |
|
548 |
|
|
(33 |
) |
Finance income |
|
(34,056 |
) |
|
(633 |
) |
Finance costs including
fines and penalties on overdue loans and borrowings and finance
leases payments |
|
42,052 |
|
|
47,610 |
|
Gain on royalty and
other proceeds associated with disposal of Bluestone |
|
(3 |
) |
|
(474 |
) |
Provisions for legal
claims, taxes and other provisions |
|
4,940 |
|
|
4,222 |
|
Other |
|
68 |
|
|
281 |
|
|
|
|
|
|
Changes in working
capital items: |
|
|
|
|
Trade and other
receivables |
|
1,354 |
|
|
(318 |
) |
Inventories |
|
(7,858 |
) |
|
(4,508 |
) |
Trade and other
payables |
|
4,150 |
|
|
(3,435 |
) |
Advances received |
|
485 |
|
|
625 |
|
Taxes payable and other
liabilities |
|
683 |
|
|
(158 |
) |
Other current
assets |
|
(851 |
) |
|
(895 |
) |
|
|
|
|
|
Income tax paid |
|
(3,562 |
) |
|
(4,530 |
) |
|
|
|
|
|
Net cash
provided by operating activities |
|
68,118 |
|
|
63,282 |
|
|
|
|
|
|
Cash flows from
investing activities |
|
|
|
|
Loans issued and other
investments |
|
- |
|
|
(525 |
) |
Interest received |
|
188 |
|
|
165 |
|
Royalty and other
proceeds associated with disposal of Bluestone |
|
3 |
|
|
474 |
|
Proceeds from disposal
of subsidiaries, net of cash disposed |
|
- |
|
|
94 |
|
Proceeds from loans
issued and other investments |
|
9 |
|
|
144 |
|
Proceeds from disposals
of property, plant and equipment |
|
215 |
|
|
328 |
|
Purchases of property,
plant and equipment |
|
(5,472 |
) |
|
(6,460 |
) |
Purchases of intangible
assets |
|
(150 |
) |
|
(771 |
) |
Interest paid,
capitalized |
|
(440 |
) |
|
(587 |
) |
Net cash used
in investing activities |
|
(5,647 |
) |
|
(7,138 |
) |
|
|
|
|
|
Cash flows from
financing activities |
|
|
|
|
Proceeds from loans and
borrowings, including proceeds from factoring arrangement of RUB
918 million and RUB 272 million for the periods ended December 31,
2018 and 2017, respectively |
|
76,504 |
|
|
23,200 |
|
Repayment of loans and
borrowings, including payments from factoring arrangement of RUB
435 million and RUB 1,123 million for the periods ended December
31, 2018 and 2017, respectively |
|
(97,269 |
) |
|
(35,033 |
) |
Repayment of other
current financial liabilities |
|
(442 |
) |
|
- |
|
Dividends paid to
shareholders of Mechel PAO |
|
(1,386 |
) |
|
(856 |
) |
Dividends paid to
non-controlling interests |
|
(8 |
) |
|
(122 |
) |
Interest paid,
including fines and penalties |
|
(33,308 |
) |
|
(31,948 |
) |
Acquisition of
non-controlling interests in subsidiaries |
|
- |
|
|
(3,358 |
) |
Repayment of
obligations under finance lease |
|
(2,780 |
) |
|
(3,513 |
) |
Deferred payments for
acquisition of assets |
|
(629 |
) |
|
(455 |
) |
Deferred consideration
paid for the acquisition of subsidiaries in prior periods |
|
(3,968 |
) |
|
(3,652 |
) |
Net cash used
in financing activities |
|
(63,286 |
) |
|
(55,737 |
) |
|
|
|
|
|
Foreign exchange loss
(gain) on cash and cash equivalents, net |
|
63 |
|
|
(637 |
) |
Allowance for expected
credit losses on cash and cash equivalents |
|
(91 |
) |
|
- |
|
|
|
|
|
|
Net decrease in
cash and cash equivalents |
|
(843 |
) |
|
(230 |
) |
|
|
|
|
|
Cash and cash
equivalents at beginning of period |
|
2,452 |
|
|
1,689 |
|
Cash and cash
equivalents, net of overdrafts at beginning of period |
|
1,223 |
|
|
1,453 |
|
Cash and cash
equivalents at end of period |
|
1,803 |
|
|
2,452 |
|
Cash and cash
equivalents, net of overdrafts at end of period |
|
380 |
|
|
1,223 |
|
There were certain reclassifications to conform
with the current period presentation.
____________________________* EBITDA - Adjusted EBITDA.
Please find the calculation of the Adjusted EBITDA and other
non-IFRS measures used here and hereafter in Attachment A.
** Calculations of Net debt could be differ from
indicators calculated in accordance with loan agreements upon
dependence on definitions in such agreements.
Grafico Azioni Mechel PAO (NYSE:MTL)
Storico
Da Mag 2024 a Giu 2024
Grafico Azioni Mechel PAO (NYSE:MTL)
Storico
Da Giu 2023 a Giu 2024