Severstal’s mining assets form the basis of Severstal’s vertically integrated business model. Severstal Resources supplies almost all of the iron ore and approximately 70% of hard coking coal required by Severstal’s steel business, while also selling significant volumes to external customers both in Russia and abroad.
Severstal Russian Steel
The Company’s core asset is Cherepovets Steel mill, one of the lowest cost steel mills in the world, and is conveniently located within easy access of the Company’s mining operations, the Baltic ports and Russia’s industrial heartland. Severstal Russian Steel is a leading Russian steel producer, offering a broad product mix with a high proportion of high value-added flat steel products and increasing volumes of long products for construction and downstream sales.
Severstal’s share capital structure
Listing and tickers
|Moscow Exchange (MICEX) – CHMF||GDRs on the London Stock Exchange (LSE) – SVST|
|MSCI Russia||1.96 %|
|FTSE Russia IOB||1.85 %|
|Russian Depositary Index||1.61 %|
|Bloomberg World Iron/Steel Index||3.13 %|
as at 10 February 2017
|PAO Severstal Credit Rating/Outlook||BBB-/Stable||Ba1/ Stable||BBB-/Stable|
|Date of Rating*||20 September 2016||21 February 2017||20 October 2016|
*“Date of Rating” does not reflect subsequent confirmations
Benchmarking 2016 against our KPIs
*Not less than 50% of net income provided that Net debt/EBITDA is below 1.0x. Should the ratio increase to higher than 1.0x, Severstal would return to its previous dividend payout of 25% of net profit.
More of 2016 in Figures & Charts
|Operational performance, million tonnes||2016||2015||Change, %|
|Steel products (Consolidated)||10.7||10.8||(-1%)|
|Coking coal concentrate||4.1||5.7||(-28%)|
|Iron ore pellets||10.8||10.6||(+2%)|
|Iron ore concentrate||4.1||4.1||–|
Profitability highlights, million US$
Working capital optimisation and smart CAPEX*, million US$
*Consisting of cash outlays for purchases of property, plant and equipment and intangible assets
Sustainable Free Cash Flow generation, million US$
* consisting of cash outlays for purchases of property, plant and equipment and intangible assets
Clear dividend policy and sustainable returns, RUB
*includes special dividends
**to be approved at the AGM on 9 June 2017
Debt maturity schedule*, million US$
*Debt represents the principal amount of debt. Figures exclude accrued interest and unamortised balance of transaction costs.
Net debt, Net debt/EBITDA, million US$