Evraz improves EBITDA forecast for Q2
MOSCOW. Aug 3 (Interfax) - Russian steel major Evraz Group has increased its second-quarter EBITDA (earnings before interest, taxes, depreciation, and amortization) guidance to $875-$950 million, a company statement says.
The improved EBITDA forecast is associated with higher than expected steel prices, deferred increased spending on iron ore and metal scrap, and the postponement of some repair work to the third quarter.
The company also announced that it is considering alternatives to its GDR program and due to this is conducting an audit of its financial report for the first half, planning to release it on October 12.
"The company's GDR have been trading in London for around six years already, and the company can consider the possibility of premium listing for its shares on the London Stock Exchange," Uralsib Capital analyst Dmitry Smolin said. "Premium listing in London will expand the company's potential investor base, increase liquidity, and allow Evraz to make full-fledged use of its shares as an instrument in merger and acquisition deals with foreign companies," he said.
The company estimates its net debts at end-June at $6.3 billion ($7.1 billion on December 31). It expects its net debt/EBITDA ratio for the previous twelve months to be 2.18-2.25 at end-June, "which is below the threshold imposed by debt covenants and gives the company greater flexibility in the execution of its strategic plans," the statement says.
Lanebrook owns 72.87% of the Evraz Group. Its beneficiaries are the investment company Millhouse, which manages the assets of Roman Abramovich and his partners (50%), as well as Alexander Abramov and Alexander Frolov (50% in aggregate).