Ljubljana, Monday, 31 August 2015 – SIJ Group operations in the first half of 2015
In the first half of 2015 the SIJ – Slovenian Steel Group generated EUR 364.6 million in revenue (a 3% decrease compared to the same period last year), EUR 41.3 million of operating profit (EBITDA), and EUR 15.5 million of net profit. We continue to maintain a high level of operational earnings, as the EBITDA margin amounted to 11.3% in the first six months of this year, which is considerably higher than the average of the steel market. The Group's equity increased during this period to EUR 360 million.
The share of exports in the revenues structure was increased by 1.5 percentage points – to 87.8%. The highest export growth was marked on the USA market (68.2% growth compared to the first half of 2014) and in Turkey (37.4% growth). We are also maintaining our position as one of the leading global suppliers of niche steel products through the expansion of our own service and sales network, and the strengthening of market activities.
"The Group's operations in the first half of the year can be regarded as successful. Even better results were hindered by one-off extraordinary events, particularly the replacement of the information system (ERP) at the Group's largest steel company (Acroni), and three lengthy halts of individual production processes due to technical malfunctions in the Steel Division. These events contributed significantly to the lower production volume in the first months of the year, resulting in a decrease in both revenues and EBITDA. We estimate that the total negative impact on the EBITDA is estimated at EUR 5.6 million; had the Group operated normally, the individual financial indicators of the first half of last year would have been matched and even exceeded," commented Anton Chernykh, the President of the Board of Directors.
Outflows for investments were increased to EUR 35 million in the first half of the year (in the first half of last year they amounted to EUR 14.4 million). During this time we implemented some significant investments in the Steel Division (the commissioning of the new VOD and ladle furnace at Metal Ravne) and continued to implement a new investment cycle (immediately following the reporting period, a 30 million investment in a AOD furnace in Acroni has been approved).
"In the first half of the year we have continued the implementation of the financial source diversification strategy in order to maintain the long-term stability of our financial operations. In this way we have been successfully represented in the capital market – in addition to issuing bonds last year, we issued commercial papers in March and another batch of bonds after the reporting period. This provided us with suitably diversified financial sources for the next investment cycle, particularly in the Steel Division where the key investments for the period up to 2017 have been clearly defined and evaluated," said Igor Malevanov, Member of the Board of Directors for Economics and Finance.
The SIJ Group is the largest Slovenian vertically integrated metallurgist group, ranking among the top market positions on the European and world niche steel markets. The Group comprises five business areas, has 22 affiliated companies in Europe and the USA, and employs 3,200 people.
In 2014, the SIJ Group generated EUR 707.8 million in revenues or a 7% increase in comparison with 2013. The EBITDA increased by 91% reaching EUR 77.8 million. The 11% EBITDA margin that we achieved puts the SIJ Group among the most successful world steel producing groups in 2014. The EBIT amounted to EUR 39.6 million and increased by 18 times in comparison with 2013, and net profit was slightly less than EUR 25 million.
- Dr. Denis Mancevič, Director of Corporate Communications
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