Evraz (EVR) revealed a net loss of $1.28bn (£858m) for 2014, more than double the $551m loss in the previous year. Reported figures for the Russian steelmaker were hit by foreign-exchange losses of $1bn as the devaluation of the rouble effectively inflated US-denominated amounts owed by subsidiaries in Russia and Ukraine. There was a separate $583m charge on currency and interest rate swaps, in addition to standard asset write-downs amounting to $540m.
However, the underlying figures paint a different picture. The dollar's relative strength also reduced operating expenses for the group's Russian and Ukrainian subsidiaries, so cash profit increased by over a quarter to $2.33bn on a margin of 17.8 per cent - up from 12.6 per cent in the previous year. Operating cash flow also remained strong at $1.96bn, which pushed net debt down 11 per cent to $5.81bn. (Net debt rose as a proportion of net assets, but that's because of the negative translation effects on Evraz's balance sheet.)
Evraz also announced a plan to return up to $375m to shareholders by way of a tender offer at a price of $3.10 a share. The offer, which is subject to shareholders' approval, represents a maximum of 8 per cent of the group's issued share capital.
Prior to these figures, JPMorgan Cazenove was predicting 2015 cash profit of $2.04bn with adjusted EPS of $0.24 a share.
EVRAZ (EVR) | ||||
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ORD PRICE: | 200p | MARKET VALUE: | £3bn | |
TOUCH: | 199-200p | 12-MONTH HIGH: | 205p | LOW: 72p |
DIVIDEND YIELD: | nil | PE RATIO: | na | |
NET ASSET VALUE: | 119¢* | NET DEBT: | 288% |
Year to 31 Dec | Turnover ($bn) | Pre-tax profit ($bn) | Earnings per share (¢) | Dividend per share (p) |
---|---|---|---|---|
2010 | 13.1 | 0.63 | 39.0 | nil |
2011 | 16.1 | 0.88 | 36.0 | 17 |
2012 (restated) | 14.7 | -0.19 | -29.0 | 11 † |
2013 (restated) | 14.4 | -0.64 | -34.0 | 6 †† |
2014 | 13.1 | -1.08 | -78.0 | nil |
% change | -9 | - | - | - |
£1=$1.48. *Includes intangible assets of $1.98bn, or 132¢ a share. † Half-year dividend only. †† Special dividend resulting from asset sale. |