2018 highlights
a commendable performance
In 2018, Metinvest reported some of its most impressive results in the last four years. Major financial investment and corporate accomplishments marked significant progress towards fulfilling the strategic priorities for 2030.
download 2018 highlights 502kbchief executive officer's review
on the right track
In 2018, Metinvest excelled on numerous fronts, providing strong validation that it has created the right roadmap for a sustainable future. Focusing on quality in everything it does, the Group forged ahead with large-scale asset upgrades, while the improved debt portfolio allowed it to ramp up its most capital-intensive plans. Metinvest also seized several acquisition opportunities that are an ideal fit with the business model.
yuriy ryzhenkov chief executive officer download ceo's review 502kbstrategy
SUSTAIN COMPETITIVE ADVANTAGES IN STEELMAKING THROUGH VERTICAL INTEGRATION
Increase operational efficiency and achieve best practices in steelmaking through focused investments in advanced technologies
Continue improving Metinvest’s self-sufficiency in key raw materials
Increase production capacity by growing organically and by pursuing selective acquisition opportunities
Establish and sustain a continuous improvement culture
Increase personnel productivity
strengthen positions in strategic markets
Increase focus on finished products
Improve the product portfolio mix
Increase sales of steel products in the Ukrainian and regional markets
Build long-term customer relationships and deliver high-quality customer service worldwide
Achieve business excellence through best practices
Further develop the operating model
Strengthen the unified corporate culture and maximise employees’ commitment
Enhance unified and efficient business processes
Maintain transparency of operations and corporate responsibility
in focus
results:a show of strength
In 2018, Metinvest reported some of its best results in four years, demonstrating that it is indeed moving forward with conviction. Key performance indicators were solid across the board, in terms of both operations and finances, representing a show of strength.
download in focusOPERATIONS
By any measure, the period from 2014 to 2017 was a testing one, as the Group worked to maintain operations amid force majeure developments in Eastern Ukraine, market uncertainty and liquidity constraints. Despite such conditions, however, Metinvest prevailed, emerging to post some of its strongest operational and financial results in the reporting period, a testament to the dedication of its executives and employees.
Metinvest made several adjustments to its operating model, which has allowed it to progress further. The Group increased output at the Mariupol facilities, secured more stable raw material supplies and intensified its investment programme, which, among other objectives, envisages greater production at those steel plants. Metinvest diverted almost all coking coal from its US mines to its Ukrainian coke producers. In addition, the Group arranged sustainable square billet supplies for its Bulgarian re-roller.
FINANCES
While the conjuncture on the global steel market undoubtedly improved in the last two years, volatility nonetheless remained high amid rising concern about global economic growth, trade tensions between key global players and rapidly moving prices for raw materials and energy. In such an environment, the Group put on a commendable operational display, reconfirming its ability to respond proactively to sudden changes in external conditions, supported by its global sales network.
Regarding steel sales over the period from 2014 to 2018, the share of such priority markets as Ukraine, Europe and MENA remained steadily above 70%, while the mix among other regions shifted from the CIS towards North America and Southeast Asia.
In the iron ore sales mix, the share of pellets reached 48% in 2018, compared with 38% in 2014. At the same time, there were significant changes in the breakdown of markets. Although Ukraine remained the home market for iron ore sales, the Group managed to increase sales volumes to Europe by 3.5 times over the last four years due to its focus on quality, which pushed the share of Europe to above 50%.
This operational strength fed into equally solid financial results in 2018. Revenues climbed to US$11,880 million, up 12% compared with 2014. EBITDA reached US$2,513 million, very close to the level seen four years ago. The contributions to EBITDA from the Mining and Metallurgical segments fluctuated, from a respective 61% and 39% in 2014 to 50% each in 2018, proving the benefits of vertical integration. In addition to stronger results from the business, the Group rebuilt its financial position in 2018.
global operations
strength in numbers
- Regions with sales in 2018
- Regions with no sales in 2018
- 1Ukraine's key operations
- (Azovstal,
- Ilych Steel,
- Avdiivka Coke,
- Zaporizhia Coke,
- Northern GOK,
- Central GOK,
- Ingulets GOK)
- 2Ferreira Valsider
- 3Metinvest Trametal
- 4Promet Steel
- 5Spartan UK
- 6United Coal
- 1Belarus
- 2Belgium
- 3Bulgaria (3 offices)
- 4Canada
- 5China
- 6Dominican Republic
- 7Germany (2 offices)
- 8Italy (3 offices)
- 9Lebanon
- 10Poland
- 11Romania
- 12Russia (11 offices)
- 13Singapore
- 14Spain
- 15Switzerland
- 16Tunisia
- 17Turkey
- 18Ukraine (8 offices)
- 19United Arab Emirates
- 20United Kingdom
chairman's statement
a clear route ahead
In 2018, Metinvest delivered a robust operational and financial performance, posting results that set a new benchmark compared with recent years. Alongside this, the Group strengthened the expertise of its Supervisory Board and Executive Committee, focused even more on attracting and retaining talent, and made strong additional environmental, social and governance achievements.
oleg popov chairman of the supervisory board download chairman's statementdownload centre
- Independent Auditor's Report
- Summary Consolidated Balance Sheet
- Summary Consolidated Income Statement
- Summary Consolidated Statement of Comprehensive Income
- Summary Consolidated Statement of Cash Flows
- Summary Consolidated Statement of Changes in Equity
- Notes to the Consolidated Summary Financial Statements - 31 December 2018