News

19 January 2017

Q4 2016 and 12M 2016 NLMK Group Trading update

NLMK Group is pleased to announce its Q4 2016 and 12M 2016 operating results:

In 2016, NLMK Group steel output* increased by 4% yoy to a record 16.6 m t; sales totaled 15.9 m t (stable yoy). Group steelmaking capacities in 2016 were running at 96%, up by 3 p.p. yoy. 4Q 2016 sales totaled 3.6 m t (-4% yoy); steel output grew by 8% yoy to 4.2 m t.

12M 2016 highlight:

  • Crude steel output* grew by 4% yoy to 16.6 m t on the back of the increase in production across all sites.
  • NLMK Group capacity utilization rates increased by 3 p.p. to 96%.
  • NLMK Group sales totaled 15.9 m t (flat yoy).
  • Share of finished product sales grew by 2 p.p. yoy to 64%.
  • Market shares in NLMK Group total sales:
    • share of product sales by Group companies in regions where products are manufactured (‘home markets’) totaled 66% (flat yoy).
    • share of sales to third parties (except NBH) in markets external to countries where products are manufactured (‘export markets’) totaled 34% (flat yoy).

Q4 2016 highlights:

  • Crude steel output* increased to 4.2 m t (+8% yoy and +3% qoq) following the completion of planned repairs at Novolipetsk in 3Q 2016.
  • Steelmaking capacity utilization rates were up by 3 p.p. yoy to 95%.
  • NLMK Group sales totaled 3.6 m t (-4% yoy and -15% qoq) due to the decrease in pig iron deliveries (-73% yoy and -61% qoq).
  • Finished products accounted for 62% of total sales (+6 p.p. yoy and -3 p.p. qoq).

*Steel output is given taking into account associated companies (NBH)