Logotype for Public Joint Stock Company Severstal

Severstal (CHMF) investor relations material

Severstal Q4 2021 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Logotype for Public Joint Stock Company Severstal
Q4 2021 earnings summary11 Feb, 2022

Executive summary

  • Revenue for 2021 reached $11,638 million, up 69% year-over-year; Q4 2021 revenue was $3,267 million, up 2% quarter-over-quarter.

  • EBITDA for 2021 was $5,978 million, a 147% increase from 2020; Q4 2021 EBITDA was $1,446 million, down 16% qoq.

  • Net profit for 2021 was $4,075 million, up from $1,016 million in 2020; Q4 2021 net profit was $978 million.

  • Free cash flow in 2021 was $3,539 million, up 322% yoy; Q4 2021 FCF increased 12% qoq to $1,114 million.

  • Net debt/EBITDA ratio improved to 0.23 at year-end 2021, down from 0.29 in Q3 2021 and 0.8 in 2020.

Financial highlights

  • EBITDA margin for 2021 was 51%, up 16 p.p. yoy; Q4 2021 EBITDA margin was 44%, down 10 p.p. qoq.

  • Operating margin for 2021 was 46%; Q4 2021 operating margin was 39%.

  • Cash and cash equivalents at year-end were $418 million, up 49% qoq; total debt stood at $1,816 million, flat qoq.

  • Gross profit for 2021 was $6,718 million, up from $2,918 million in 2020.

  • Basic earnings per share for 2021 were $4.88, compared to $1.23 in 2020.

Outlook and guidance

  • Steel price environment stabilized after a downward trend in 2H 2021, rebounding in early 2022 due to seasonal demand.

  • Raw material prices showed mixed trends; supply shortages reversed the downside by end-Q4.

  • CAPEX guidance for 2022 increased, mainly for new development projects and reallocation from 2021.

  • Management monitors economic and geopolitical risks, including sanctions and regulatory changes.

  • No significant COVID-19 impact identified for 2021; ongoing monitoring continues.

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