Metinvest sells nearly half of products in EU in 2023

MOSCOW. March 19 (Interfax) - Ukrainian steel and mining group sold 48% of its metallurgical and mining products in European Union countries in 2023, compared to 49% in 2022, Ukrainian media reported, citing the annual report of the group's Netherlands-based parent company Metinvest B.V.

The share of sales on the domestic market grew to 35% from 28% in 2022 and the share of sales in Asia increased to 7% from 4%. The group sold 2% of its products in the Middle East and North Africa (MENA), 1% in the CIS, 6% in North America and 1% in other regions, compared to, respectively, 7%, 3%, 6% and 3% in 2022.

Metallurgical sales by region broke down into 50% in the EU (49% in 2022), 38% in Ukraine (30%), 3% in MENA countries (10%), 1% in the CIS (4%), 7% in North America (6%) and 1% in other regions (1%). The company did not ship metallurgical products to Asia in 2022-2023.

Mining sales broke down into 44% in the EU (51% in 2022), 30% in Ukraine (22%), 20% in Asia (13%), 0% in MENA countries (2%), 5% in North America (6%) and 1% in other regions (7%).

Metinvest's revenue fell 11% to $7.397 billion, primarily due to lower selling prices for steel, iron ore and coking coal. Sales of pig iron, slabs, flat products and rolled tubular products were also affected by the shutdown of the group's steel plants in a number of regions.

However, Metinvest increased shipments of other products in its portfolio, primarily billets by 6%, long products by 28%, pellets by 70% and coking coal concentrate by 32%, as well as resales of steel and coke amid an increase in production at Zaporizhstal.

Metinvest's revenue in Ukraine grew by 14% to $2.628 billion, primarily on the back of the recovery of demand for iron ore and coking coal, as well as for flat and long products.

"We worked out our supply chain and strengthened relations with our suppliers and customers in order to withstand current conditions. At the beginning of 2023 the company had significant problems, including due to disruptions in electricity supplies. However, having implemented the necessary changes to respond to this crisis, we managed to gradually restore production," Metinvest CEO Yury Ryzhenkov said in the report.

He also said that Metinvest remains committed to servicing its debts, having redeemed the outstanding principal on the group's 2023 bonds on time and in full, while continuing to reduce the share of borrowed funds.

Metinvest is 71.24% owned by SCM and 23.76% by Smart Holding.