Metinvest halts operations at Yenakiyeve Steel



9 февраля 2015 года
Конкорд Капитал

Енакиевский металлургический завод (ENMZ)


The continuing warfare in Donbas and destruction of railroads in the region forced Metinvest (METINV) to halt production at its third-largest steelmaker, Yenakiyeve Steel (ENMZ UK), including at the Makiyivka Rolling Mill, the holding announced on Feb. 6. The temporary suspension of operations will take around three days, with 90% of personnel placed on leave with two-thirds of their salaries retained. As Metinvest stated in a press release, the timing of operations restarting at Yenakiyeve and Makiyivka will depend on developments in the region. Metinvest’s two other steelmakers, Azovstal and Ilyich Steel, are also balancing on the brink of halting operations due to a lack of natural gas supply, according to separate statements from company officials.

Roman Topolyuk: The suspension of operations at Yenakiyeve Steel and its subsidiary is an adverse development for Metinvest’s financial position. We estimate a negative impact on Metinvest’s EBITDA at around USD 250 mln, if the idle mode is extended to the year end, which challenges our most recent projection of the holding’s EBITDA of USD 1.7 bln for 2015. In the worst case scenario, with Azovstal and Ilyich Steel also standing idle, Metinvest will face drastic consequences for its ability to generate cash flow, as sales of iron ore products will scarcely be able to generate cash flow sufficient to meet creditors’ claims in 2015 (USD 806 mln in banking debt and USD 114 bln in Eurobonds maturing in May).

Источник: Конкорд Капитал

Аналитик: Роман Тополюк


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