NLMK Group, a leading global steel company (MICEX and LSE: NLMK) is pleased to announce an EBITDA margin expansion to 25% and a 9% y-o-y growth in free cash flow to $1.1 bn in 2016
Q4 2016 highlights
Comment from NLMK Group CFO Grigory Fedorishin:
“NLMK’s business model, which is based on operational efficiency, a world-class resource base, and leading positions in key markets, has delivered strong operational and financial results.
“Our proximity to end consumers in the markets where we operate and our well-oiled supply chain from Russia supported high capacity utilization and sales growth to an all-time record 15.9 million tonnes.
“The gradual recovery of prices from the early 2016 bottom along with the increased productivity and operational efficiency emerged as the main factors driving EBITDA margin expansion to 25%.
“In 2016, a pelletizing plant was launched at Stoilensky mine. It will ensure NLMK’s self-sufficiency in iron ore and push our steel costs further down.
“Increasing profitability and restrained investment have led to a free cash flow of $1.1 billion and a reduction of net debt to $0.7 billion. This strengthening of the Company’s financial standing has enabled NLMK to increase the dividend payout above our Dividend Policy targets.”