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Evraz posts FY 2010 net profit of $532 million

Evraz posts FY 2010 net profit of $532 million
Russian steelmaker and miner, Evraz, has posted a FY 2010 net profit of $532 million under IFRS.

The net results compares with a FY 2009 net loss of $292 million, with consolidated adjusted EBITDA rising 90% year on year to $2.35 billion, as consolidated revenues climbed 37% year on year to $13.394 billion.The company says the results show the impact of a healthy boost in revenues with steel revenues up 35% year on year to $12.12 billion, mining revenues up 72% to $2.5 billion, and vanadium revenues up 56% to $566 million.Evraz CEO, Alexander Frolov, highlighted the strength of the rebound in the Russian and CIS steel market, in particular, as well as strong pipe demand in the United States. “In 2010 we have seen the continuation of a recovery in steel demand across all our key markets. Our steelmaking capacities in Russia were fully utilised and we significantly increased the utilisation rates of our international operations. As a reflection of the recovery in the domestic market, we increased the share of our steel sales to Russia and Ukraine from 44% to 58% of total sales from our Russian and Ukrainian mills. This allowed us to fully utilise our rolling capacities in Russia, shifting our product mix  from semi-finished steel towards higher margin products.”Giacomo Baizini, Evraz CFO, highlighted the restructuring of debt maturity, with the company reducing total debt from $7.9 billion at the end of 2009 to $7.8 billion at the end of 2010, but more significantly with short term debt reduced from $1.992 billion at the end of 2009 to $714 million at the end of 2010.“The focus of our financial management was on the refinancing of short-term debt through longer-term instruments. Capital markets were open to us, notably with regard to rouble bond issuance, but we were also able to access bank lending both on a bilateral basis and with a group of international lenders in respect of pre-export finance facility. In the wake of our refinancing exercise, short-term debt is now no longer an issue.”

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