Q2 2015 and H1 2015 NLMK Group Trading update
H1 2015 highlights:
- H1 2015 steel output increased to 7.92 m t (+3% yoy) driven by Lipetsk site productivity growth due to operational efficiency programmes.
- H1 2015 sales increased to 7.96 m t (+3% yoy) supported by semi-finished product shipments (+25% yoy).
- Q2 2015 highlights:
- Q2 2015 steelmaking utilization rates of the Group were 94% (flat qoq), including 100% at the Lipetsk site.
- Group crude steel output increased to 4.05 m t (+5% qoq) following the completion of maintenance works at the Lipetsk site and NLMK USA.
- Group sales increased to 4.00 m t (+1% qoq) due to higher finished product shipments (2.57 m t; +10% qoq) while semi-finished product sales declined by 12% qoq.
- Sales to the Russian market went up by 9% to 1.53 m t driven by the seasonal recovery in domestic demand. Their share in total sales reached 38% (+2 p.p. qoq).
- Sales of the Foreign Rolled Products Segment companies (NLMK USA and NLMK Dansteel) increased to 0.60 m t (+12% qoq); sales of NBH companies increased to 0.58 m t (+14% qoq).
In Q3 2015, we expect our operating results to grow further mainly due to higher sales of flat steel.