Moscow,
Russia – November 19, 2019 – Mechel PAO (MOEX: MTLR, NYSE: MTL), one
of the leading Russian mining and metals companies, announces 9M2019
operational results.
Production and sales (Unit in thousand
tonnes)
Product Name
|
9M2019
|
9M2018
|
%
|
3Q2019
|
2Q2019
|
%
|
Run-of-mine
coal
|
13,426
|
14,472
|
-7
|
5,290
|
4,616
|
15
|
Sales (Unit in thousand tonnes)
Product Name
|
9M19
|
9M18
|
%
|
3Q2019
|
2Q2019
|
%
|
Coking coal
concentrate
|
5,333
|
5,401
|
-1
|
1,720
|
1,916
|
-10
|
Including
coking coal concentrate supplied to third parties
|
3,309
|
3,268
|
1
|
1,068
|
1,218
|
-12
|
PCI
|
935
|
992
|
-6
|
390
|
284
|
37
|
Including PCI
supplied to third parties
|
935
|
992
|
-6
|
390
|
284
|
37
|
Anthracites
|
501
|
878
|
-43
|
206
|
136
|
51
|
Including
anthracites supplied to third parties
|
371
|
724
|
-49
|
137
|
104
|
32
|
Thermal coal
|
4,007
|
4,319
|
-7
|
1,364
|
1,311
|
4
|
Including
thermal coal supplied to third parties
|
3,541
|
3,718
|
-5
|
1,203
|
1,151
|
5
|
Iron ore
concentrate
|
1,922
|
1,398
|
37
|
722
|
588
|
23
|
Including
iron ore concentrate supplied to third parties
|
181
|
42
|
329
|
14
|
18
|
-22
|
Coke
|
1,913
|
1,831
|
5
|
649
|
613
|
6
|
Including
coke supplied to third parties
|
697
|
502
|
39
|
281
|
185
|
52
|
Mechel
PAO’s Chief Executive Officer Oleg Korzhov commented on operational
results:
“In
3Q2019, due to our upgrade of mining equipment as well as fruitful
cooperation with contractors, all our mining facilities boosted stripping
and mining volumes. In this accounting period we mined a total of 5.3
million tonnes of coal, which is 15% more than in the previous quarter.
Stripping volumes went up by 17% quarter-on-quarter. This is an important
result for us, as these works ensure a future increase in our mining
facilities’ output.
“In
this accounting period, Mechel’s sales networks inked several long-term
contracts with major European and Asian customers, which guarantees us
stable sales of our mining division’s output in the future periods.
“As
for prices for our key product — coking coal concentrate — as well as
other metallurgical coals, starting in 3Q2019 our key markets were highly
volatile and demonstrated a major slump in prices, down 20% on average and
occasionally dropping by 30% compared to the beginning of the quarter.
However, in our opinion — which coincides with consensus forecasts of
leading international investment banks — demand and price indicators in
the next few years will remain fairly stable due to customers in Asia
Pacific.
“The
10-percent decrease in coking coal concentrate quarter-on-quarter was due
to necessary planned repairs at Neryungrinskaya Washing Plant as well as a
temporary decrease in sales to South Korea, as we ship coal to this
country according to a schedule set by an annual contract with a major
client. At the same time, we increased output at Southern Kuzbass Coal
Company, with PCI and anthracite sales up 37% and 51% accordingly.
“Iron
ore mining and concentrate output at Korshunov Mining Plant are growing
steadily, with sales up 23% in 3Q2019. This product is mostly shipped to
Chelyabinsk Metallurgical Plant, with some of it sold to third parties.
“Overall
coke sales went up by 6%, with sales to third parties up by 52% due to
sales of released output on the domestic market.
“In
this accounting period we began large-scale repairs of Chelyabinsk
Metallurgical Plant’s blast furnace #4, which reflected on our pig iron
(down 8%) and steel production (down 5%) quarter-on-quarter. In
July-September we boosted rail sales by 75% to fulfill our contractual
obligations to Russian Railways, Moscow Metro and Mosinzhproekt, as well
as increased sales of various sections produced by the plant’s universal
rolling mill by 5%. Sales of Izhstal’s long rolls went up by 7% —
primarily due to increased demand from military and automobile industries.
The overall four-percent slump in long roll sales was due to a decrease in
rebar output at Chelyabinsk Metallurgical Plant as the blast furnace
underwent repairs. The same also caused a five-percent decrease in sales
of flat rolls. At the same time, we continued to implement our strategy of
expanding Mechel’s share of the domestic stainless market, increasing
sales of our stainless flats by 15% quarter-on-quarter.
“The
19-percent decrease in sales of Bratsk Ferroalloy Plant’s ferrosilicon
quarter-on-quarter was due to continuing reconstruction of one of the
plant’s four furnaces. These repairs are due to be completed by this
year’s end.
“Forgings
sales went up by 11% quarter-on-quarter due to exports of stainless
forgings ensured by long-term contracts — those went up by 17%. The
19-percent decrease in stampings sales was due to an early shipping of
railroad axles — they were dispatched in the second quarter instead of
the third quarter as originally planned. It must be noted that in this
accounting period, Urals Stampings Plant upped sales of expensive
stainless stampings for the aviation industry by 72%.
“The
14-percent decrease in electricity generation quarter-on-quarter was due
to planned equipment repairs. The slump in heat generation in the third
quarter has a seasonal nature.”
Link:
Official Document
|