Main operational and financial indicators in
the 3Q19
Steel sales volume of 1.0 million
tons;
Iron ore sales
volume of 2.5 million tons;
Consolidated Adjusted EBITDA of R$441 million and
Adjusted EBITDA margin of 11.5%;
Working capital on 09/30/19 of R$4.8
billion;
Cash position on 09/30/19 of R$1.8
billion;
Investments of R$140 million.
Highlights
R$ million - Consolidated
|
3Q19
|
2Q19
|
3Q18
|
Chg. 3Q19/2Q19
|
Chg. 3Q19/3Q18
|
9M19
|
9M18
|
Chg. 9M19/9M18
|
Steel Sales Volume (000 t)
|
1,033
|
1,059
|
1,107
|
-2%
|
-7%
|
3,095
|
3,173
|
-2%
|
Iron Ore Sales Volume (000 t)
|
2,453
|
1,772
|
1,768
|
38%
|
39%
|
6,121
|
4,960
|
23%
|
Net Revenue
|
3,850
|
3,694
|
3,862
|
4%
|
0%
|
11,076
|
10,310
|
7%
|
COGS
|
-3,374
|
-3,088
|
-3,217
|
9%
|
5%
|
-9,498
|
-8,471
|
12%
|
Gross Profit (Loss)
|
476
|
606
|
644
|
-22%
|
-26%
|
1,578
|
1,839
|
-14%
|
Net Income (Loss)
|
-139
|
171
|
289
|
-
|
-
|
109
|
427
|
-75%
|
EBITDA (Instruction CVM 527)
|
453
|
570
|
686
|
-21%
|
-34%
|
1,497
|
1,804
|
-17%
|
EBITDA Margin (Instruction CVM
527)
|
12%
|
15%
|
18%
|
- 4 p.p.
|
- 6 p.p.
|
14%
|
18%
|
- 4 p.p.
|
Adjusted EBITDA
|
441
|
576
|
703
|
-23%
|
-37%
|
1,505
|
1,863
|
-19%
|
Adjusted EBITDA Margin
|
11%
|
16%
|
18%
|
- 4 p.p.
|
- 7 p.p.
|
14%
|
18%
|
- 4 p.p.
|
Investments (CAPEX)
|
140
|
105
|
90
|
33%
|
55%
|
334
|
222
|
50%
|
Cash and Cash Equivalents
|
1,822
|
1,245
|
1,682
|
46%
|
8%
|
1,822
|
1,682
|
8%
|
MINING
The
average iron ore market reference price for 62% Fe in the 3Q19 was
US$102.00/t, an increase of around 1.9% compared to the 2Q19, which had an
average of US$100.10/t and an increase of 52.9% in comparison to the same
period of the previous year, average of US$66.73/t.
In
the quarter, the price of iron ore 62% Fe reached a level of US$120/t.
However, with the recovery in global iron ore supply and worsening of the
trade war between China and the US, the quarter ended with price
negotiated at US$93.20/t.
The
3Q19 also presented a decline in the premium paid for higher quality ores.
The spread between 65% Fe and 62% Fe was negotiated on average at
US$7.48/t, a 49% fall in relation to the 2Q19, due to decline in steel
margins and consequent fall in demand for high iron content ore.
Maritime
freight, on the other hand, increased over the 3Q19, accumulating a high
of 55% over the 2Q19. The average rate for the Tubarão-Qindao route
for capsize vessels was negotiated at US$24.12/t versus US$15.55/t in the
2Q19, driven by the increase in iron ore shipments on this route and by
lesser availability of ships, as a result of adaptations to new maritime
transportation regulations that will take effect in 2020.
Operational and Sales Performance – Mining
In the 3Q19, production volume was 2.3 million tons, a
29.3% increase over the previous quarter, which was 1.7 million tons,
mainly due to resumption of operations at the Samambaia Plant. Sales
volume was 2.5 million tons in the 3Q19, against 1.8 million tons in the
2Q19, a 38.4% increase, due to higher exported volumes and increase in
domestic market sales to third parties, partially compensated by lower
volume sold to Usiminas.
Thousand tons
|
3Q19
|
2Q19
|
3Q18
|
Chg. 3Q19/2Q19
|
Chg. 3Q19/3Q18
|
9M19
|
9M18
|
Chg. 9M19/9M18
|
Production
|
2,260
|
1,748
|
1,507
|
29%
|
50%
|
5,345
|
4,206
|
27%
|
Sales - Third Parties - Domestic
Market
|
600
|
540
|
221
|
11%
|
171%
|
1,556
|
524
|
197%
|
Sales - Exports
|
1,373
|
683
|
839
|
101%
|
64%
|
2,924
|
2,604
|
12%
|
Sales to Usiminas
|
480
|
549
|
708
|
-13%
|
-32%
|
1,641
|
1,832
|
-10%
|
Total Sales
|
2,453
|
1,772
|
1,768
|
38%
|
39%
|
6,121
|
4,960
|
23%
|
Related Link: Official
Document
|