Metinvest Holding

Metinvest Holding is an international, vertically integrated mining & metals company. The Group includes coal, coking, mining, steel and rolling plants in Ukraine, the EU and the U.S. Metinvest Holding manages the complete production chain, from extracting iron ore and coal to manufacturing semi-finished and finished steel products.

In 2019, Metinvest ranked 42nd among the largest steel makers in the world, and 5th in the CIS.

Metinvest Holding was 13th in late 2015 in the Deloitte TOP-500 Central and Eastern Europe ranking.

Metinvest Holding network of sales offices and service centres covers more than 80 countries.

Location: Ukraine, EU, U.S.
Shareholders: Beneficiaries Rinat Akhmetov (SCM Group) — 71.24%; Vadym Novynskyi (Smart Holding) — 23.76%
Markets: EU Member States, Ukraine, Middle East countries
Products: Flat products, pig iron, long products

Charts and tables

Production results, thousand tons

20000150001000050000
2012 11010 kt2012
2013 11500 kt2013
2014 9213 kt2014
2015 8050 kt2015
2016 8821 kt2016
2017 8188 kt2017
2018 8205 kt2018
2019 7928 kt2019
20000150001000050000
2012 12459 kt2012
2013 12391 kt2013
2014 9205 kt2014
2015 7669 kt2015
2016 8393 kt2016
2017 7630 kt2017
2018 7323 kt2018
2019 7578 kt2019
40003500300025002000150010005000
2012 2731 kt2012
2013 3118 kt2013
2014 2820 kt2014
2015 2581 kt2015
2016 2262 kt2016
2017 2761 kt2017
2018 3026 kt2018
2019 3160 kt2019
6000500040003000200010000
2012 5809 kt2012
2013 5840 kt2013
2014 4625 kt2014
2015 4010 kt2015
2016 4385 kt2016
2017 4675 kt2017
2018 4747 kt2018
2019 4677 kt2019
300025002000150010005000
2012 2448 kt2012
2013 2592 kt2013
2014 1765 kt2014
2015 1475 kt2015
2016 1918 kt2016
2017 912 kt2017
2018 817 kt2018
2019 714 kt2019
500450400350300250200150100500
2012 435 kt2012
2013 315 kt2013
2014 296 kt2014
2015 128 kt2015
2016 109 kt2016
2017 151 kt2017
2018 140 kt2018
2019 155 kt2019

Indicative sales structure by products in 2019*

Indicative sales structure by markets in 2019*

** – structure of sales volumes, metric tons

Financial performance, $ million

 2013201420152016201720182019
Sales12807105656832622389311188010757
EBITDA2.3612.7025131.1532.0442.5131213
EBITDA margin18%26%8%19%23%21%11%
Net income392159-10031186171188341
Net income margin3%2%-15%2%7%10%3.2%
CAPEX7476132853745428981055
Net debt3525311827662318229824632758

Key facts

2020

Fitch expects Metinvest to reduce its investment program in 2020 to $600 million. Only environment-related projects and projects to increase operational efficiency will be carried out.

In 2020, the Metinvest Group is to ramp up sales of hot-rolled coils by 17.6% to 4 million tons against the 2019 estimation as a result of a project for the reconstruction of the hot strip mill 1700 at Ilyich Iron and Steel Works.

2019

In 2020, the Metinvest Group invested $386 million (+47% YoY) in environmental projects, according to the Group’s annual report.

In November 2019, due to negative market conditions, the Metinvest Group announced a cut in the investment program: the implementation of some projects will be suspended, except for critical ones provided for by the Technology Strategy, and projects with significant environmental effects.

In October 2019, Metinvest placed Eurobonds worth $500 million and €300 million.

In 2019, Metinvest Holding plans to increase CAPEX by 20% up to $1.08 billion.

In 2019, Metinvest Holding plans to increase steel production by 13.5% compared with the previous year – up to 8.4 million tons.

Metinvest Holding attracted €34 mln loan from Austrian bank ODDO BHF Aktiengesellschaft with guaranties of Austrian Oesterreichische Kontrollbank Aktiengesellschaft. The aim of the loan – reconstruction of the sheet rolling shop 1700 on Ilyich Iron and Steel Works of Mariupol.

In April 2019

Metinvest Holding received a permit from the Antimonopoly Committee of Ukraine for buying a stake in Dniprovskyi Coke & Chemical Plant (Kamianske, Dnipropetrovsk oblast).

By March 2019

Metinvest Holding appeared in rankings of the major international rating agencies and got: B (positive outlook) by Fitch, B- (positive outlook) by S&P, and B3 (stable outlook) by Moody’s.

In August 2018

Metinvest Holding bought 25% of shares in Donetskstal Iron and Steel Works PrJSC. Hence, the company became an indirect shareholder of Pokrovske Coal Company PrJSC, the largest coking coal producer in Ukraine.

In 2018

Metinvest Holding announced the purchase of a 23.71% stake in Yuzhcoke, a coke producer. The deal was worth $30 million.

In 2018

Metinvest Holding bought Unisteel (Kryvyi Rih, Dnipropetrovsk oblast), a producer of galvanized rolled products with the annual capacity of 100 thousand tons.

In April 2018

Metinvest Holding successfully refinanced its debt obligations by issuing new Eurobonds worth $1.592 billion and attracting a pre-export financing facility in the amount of $765 million. These two deals brought additional $205 million to the company. Besides, the maturity of debt on bonds was extended from 2021 to 2023 ($953 million) and 2026 ($648 million).

In March 2017

Metinvest Holding said that it had lost control over its assets in the non-government-controlled territories of Luhansk and Donetsk oblasts, including Yenakieve Iron and Steel Works (EMZ), Khartsyzk Pipe Plant (KPP), Krasnodonugol.

Sources: websites of the companies, media outlets