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Severstal (CHMF) investor relations material
Severstal Q4 2021 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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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