Severstal’s mining assets are a fundamental part of the Company’s vertically integrated business model. Severstal Resources supplies almost all of the iron ore and approximately 60% of the hard coking coal consumed 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 the Cherepovets Steel mill, one of the lowest cost steel mills in the world, strategically located near to the Company’s mining operations, the Baltic ports and Russia’s industrial heartland. Severstal Russian Steel is a leading Russian steel producer. The division has a broad product portfolio, comprising a majority 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||1.78 %|
|FTSE Russia IOB||2.10 %|
|Russian Depositary Index||1.54 %|
|Bloomberg World Iron/Steel Index||2.64 %|
|* as at 11 December 2017|
|PAO Severstal Credit Rating/Outlook||BBB-/Stable||Baa3/Positive||BBB-/Stable|
|Date of Rating**||20 September 2016||29 January 2018||20 October 2016|
|** “Date of Rating” does not reflect subsequent confirmations|
Our key performance indicators remain the same, we will add Total Shareholder Return (TSR) during 2018
*Severstal analysis, quarterly and annual reports. ** Dividend policy: Not less than 50% of the net profit for the reporting period 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. *** The majority of cash out for: Q4 16, Q1 17, Q2 17, Q3 17 dividends paid in 2017, subject to FX.
More of 2017 in Figures & Charts
|Operational performance, million tonnes||2017||2016||Change, %|
|Steel products (Consolidated)||10.9||10.7||2%|
|Coking coal concentrate||3.3||4.1||(20%)|
|Iron ore pellets||11.1||10.8||3%|
|Iron ore concentrate||4.3||4.1||5%|
Profitability highlights, million US$
Working capital dynamic 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
*Q3 2014 dividends include special dividends
**to be approved at AGM
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$