Donetsksteel Group would like to update regarding operating performance results in FY 2013 and current business performance of the Group

In FY 2013 Donetsksteel Group continued to demonstrate high level of production its traditional commodities: the Group produced 4 791 ths. ton of coking coal concentrate, 2 346 ths. ton of coke, 1 380 ths. ton of pig iron and 32 ths. ton of section rolling. In order to overcome the significant (15-20%) decrease of sales prices in the external and internal markets Donetsksteel Group has taken certain efforts to cut non-core business costs and production costs that resulted in FY 2013 EBITDA equal to USD 291 mio. and the leverage ratio equal to 2,95 as of 31.12.2013.

During January-February 2014 the Group produced 687 ths. ton of coking coal concentrate, 348 ths. ton of coke and 214 ths. ton of pig iron that is fully correspondent with the short-term financial and production projections of the Group. 55% of the Group`s commodities is exported (via Odessa, Nikolaev and Yuzhniy sea ports and Ukrainian cross-border railway hubs). Despite current instability in Crimea the Group also continues to use sea ports in Mariupol and Berdyansk and does not expect any logistic problems in future. The recent significant UAH devaluation already has positive impact on the Group`s profitability in FY 2014 (according to the estimations of Moody`s rating agency 10% UAH devaluation will result in 8% decrease of the production costs and respective increase of EBITDA, 30% UAH devaluation will result in 22% decrease of the production costs and increase of EBITDA). The current liquidity position of Donetsksteel Group is stable due to positive trading free cash-flows and availability of committed credit facility lines amounting to USD 80 mio. from both international and Ukrainian financial institutions.

2014-03-12 12:00