Central Iron Ore increases its 1Q14 EBITDA 46% on a one-off



25 апреля 2014 года
Конкорд Капитал

Центральный ГОК (CGOK)


Iron ore concentrate and pellets producer Central Iron Ore (CGOK UK), part of Metinvest, reported an EBITDA of USD 114 mln in 1Q14 (+46% yoy, +36% qoq). It generated a net income of USD 75 mln (+47% yoy and 50% qoq, EPS of USD 0.1/share). The company’s revenue grew only 3% yoy to USD 170 mln (-2% qoq), while sales of finished iron ore products declined 6% yoy to 1.5 mmt.

Roman Topolyuk: The primary reason of such substantial increase in earnings of Central Iron Ore was an “other operating income” item, which seems to be a one-off. Secondly, the average selling price of the company’s products grew 9% yoy contrary to Ukraine’s local market and the global market 18-19% yoy decrease. Moreover, we estimate the positive effect from hryvna devaluation has not yet been accounted for in production costs of 1Q14, which grew 5% yoy in USD terms.

Modeling a 30% yoy hryvna average devaluation to 10.5 UAH/USD, which will be partially offset by a 10% yoy projected decrease in iron ore prices, we expect CGOK to report an EBITDA of USD 365 mln (+11% yoy), and an EPS of USD 0.24/share (+46% yoy) in 2014.

Источник: Конкорд Капитал

Аналитик: Роман Тополюк


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