PJSC Mechel : Mechel Reports 2Q2021 Operational Results
Mechel PAO (NYSE: MTL), a leading Russian mining and metals company, reported significant operational results for 2Q2021.
Key highlights include:
- Coking coal production rose by 12% quarter-on-quarter, with export sales more than doubling.
- Pig iron and steel sales increased significantly, achieving the highest quarterly revenue in 10 years.
- Despite a 13% drop in electric power generation and a 55% decrease in heat output, overall operations showed a positive recovery trend.
- Coking coal production increased by 12% quarter-on-quarter.
- Coking coal concentrate sales rose by 71% quarter-on-quarter.
- Sales of PCI coal up by 27%, primarily due to higher shipments to Japanese and South Korean customers.
- Iron ore concentrate sales increased by 27%, aided by new mining equipment.
- Overall coke sales climbed 22% quarter-on-quarter.
- Sales of long steel increased by 22%, with notable growth in high-margin products.
- Sales of forgings increased by 15% quarter-on-quarter due to strong foreign demand.
- Electric power generation decreased by 13% quarter-on-quarter.
- Heat output fell sharply by 55% due to seasonal factors and maintenance.
- Sales of thermal coals dropped by 27% quarter-on-quarter.
MOSCOW, RUSSIA / ACCESSWIRE / August 27, 2021 / Mechel PAO (MOEX:MTLR, NYSE:MTL), one of the leading Russian mining and metals companies, announces 2Q2021 and 1H2021 operational results.
Mechel's Chief Executive Officer Oleg Korzhov commented on the 2Q2021 results:
"In the second quarter, prices for our key product - coking coal - CFR China and FOB Australia continued their confident growth, and positive export commodity dynamics supported the domestic market as well. The key reason lies in reduced coking coal production in China. Imported coking coal prices in China also grew as supply from Mongolia did not recover due to worsening pandemic situation in that country. We expect that demand from major Chinese steelmakers will maintain prices for imported coal at a fairly high level in the entire Asian region. We do not expect any corrections until the fourth quarter.
"We consider this reporting period as the time of gradual restoration of our operations. Coal mining went up by
"PCI sales went up by
"Exports accounted for
"Iron ore concentrate sales went up by
"The overall coke sales went up
"Pig iron and steel making dynamics in 2Q2021 have climbed into positive territory. By using the stockpiles accumulated in the previous quarter as we prepared for a seasonal hike in demand, we ensured a major boost to sales of nearly every type of our steel division's products. This way we took full advantage of the favorable market trend seen in 2Q2021, and that enabled the division to secure the highest quarterly revenue in a decade.
"Sales of long steel in 2Q2021 went up by
"Flat steel sales went up
"Ferrosilicon sales grew by
"Hardware sales were up
"Sales of forgings increased by
"The quarter-on-quarter 13-percent decrease in electric power generation and 55-percent slump in heat output was due to the end of the heating season and planned maintenance and repairs of the heat and electric equipment."
Production (thousand tonnes):
Product Name | 2Q2021 | 1Q2021 | % | 1H2021 | 1H2020 | % |
Run-of-mine coal* | 2,962 | 2,642 | + | 5,604 | 10,047 | - |
Pig iron | 796 | 771 | + | 1,568 | 1,783 | - |
Steel | 876 | 849 | + | 1,724 | 1,803 | - |
Electric power generation (thousand kWh) | 745,682 | 854,503 | - | 1,600,185 | 1,608,023 | |
Heat power generation (Gcal) | 922,842 | 2,063,718 | - | 2,986,560 | 2,721,630 | + |
Sales (thousand tonnes):
Product Name | 2Q2021 | 1Q2021 | % | 1H2021 | 1H2020 | % |
Coking coal concentrate* | 1,501 | 876 | + | 2,377 | 3,052 | - |
Including coking coal concentrate supplied to third parties | 1,078 | 487 | + | 1,566 | 2,200 | - |
PCI | 322 | 254 | + | 576 | 967 | - |
Including PCI supplied to third parties | 322 | 254 | + | 576 | 967 | - |
Anthracites | 347 | 360 | - | 707 | 552 | + |
Including anthracites supplied to third parties | 312 | 320 | - | 632 | 433 | + |
Thermal coals* | 716 | 977 | - | 1,693 | 1,857 | - |
Including thermal coals supplied to third parties | 477 | 701 | - | 1,178 | 1,274 | - |
Iron ore concentrate | 414 | 327 | + | 741 | 1,042 | - |
Including iron ore concentrate supplied to third parties | 8 | 8 | - | 15 | 16 | - |
Coke | 752 | 616 | + | 1,368 | 1,230 | + |
Including coke supplied to third parties | 364 | 238 | + | 602 | 370 | + |
Ferrosilicon | 21 | 18 | + | 39 | 31 | + |
Including ferrosilicon supplied to third parties | 15 | 13 | + | 28 | 21 | + |
Long rolls | 685 | 564 | + | 1,249 | 1,295 | - |
Flat rolls | 121 | 105 | + | 226 | 233 | - |
Hardware | 142 | 117 | + | 259 | 268 | - |
Forgings | 10 | 9 | + | 19 | 22 | - |
Stampings | 17 | 12 | + | 30 | 27 | + |
*Excluding volumes produced by Elga Coal Complex which is no longer part of the Group.
Universal Rolling Mill (thousand tonnes):
Product Name | 2Q2021 | 1Q2021 | % | 1H2021 | 1H2020 | % |
Sales of rails | 12 | 17 | - | 28 | 215 | - |
Sales of sections | 116 | 82 | + | 197 | 143 | + |
***
Mechel PAO
Ekaterina Videman
Tel: + 7 495 221 88 88
ekaterina.videman@mechel.com
***
Mechel is an international mining and steel company. Its products are marketed in Europe, Asia, North and South America, Africa. Mechel unites producers of coal, iron ore concentrate, steel, rolled products, ferroalloys, heat and electric power. All of its enterprises work in a single production chain, from raw materials to high value-added products.
***
Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of Mechel, as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We do not intend to update these statements. We refer you to the documents Mechel files from time to time with the U.S. Securities and Exchange Commission, including our Form 20-F. These documents contain and identify important factors, including those contained in the section captioned "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements" in our Form 20-F, that could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, the achievement of anticipated levels of profitability, growth, cost and synergy of our recent acquisitions, the impact of competitive pricing, the ability to obtain necessary regulatory approvals and licenses, the impact of developments in the Russian economic, political and legal environment, volatility in stock markets or in the price of our shares or ADRs, financial risk management and the impact of general business and global economic conditions.
SOURCE: PJSC Mechel
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https://www.accesswire.com/661671/PJSC-Mechel-Mechel-Reports-2Q2021-Operational-Results
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