LONDON (ShareCast) - (Sharecast News) - Evraz described its free cash flow for 2019 as "healthy" in its audited results on Thursday, even though it slipped to $1.46bn (?1.13bn), from $1.94bn.
The FTSE 100 company saw a continued reduction in net debt for the year ended 31 December, to $3.4bn from $3.6bn.

It said the total EBITDA effect from cost-cutting and customer focus initiatives was $407m for the year.

Consolidated EBITDA was down 31.1% year-on-year at $2.6bn, as the firm's EBITDA margin declined to 21.8% from 29.4%, which the board put down to lower vanadium and coal product prices, as well combined higher expenses.

Net profit declined to $365m from $2.47bn in 2018.

Looking at its cash costs, Evraz said the cash cost of slabs increased to $236 per tonne from $225 in 2018, following a change in the blast furnace charge mix at EVRAZ ZSMK, as well as the higher prices for raw materials and increased salary expenses.

Cash costs of coal concentrate decreased to $35 per tonne from $47 year-on-year, which was the result of increased mining volumes.

For iron, cash costs of ore products increased to $41 per tonne from $37, amid higher maintenance capital expenditure, as well as higher costs.

Evraz declared an interim dividend of $580.8m, or 40 cents per share, which it said reflected its confidence in the group's financial position and outlook.

"In 2019, global steel and commodity markets were not as favourable as they were in 2018," said chief executive officer Alexander Frolov.

"Steel prices have fallen as a result of excess supply in an environment of limited end-use demand.

"Global coal and vanadium markets returned to supply-demand equilibrium."

Frolov noted that, despite the market headwinds, the company was able to deliver "resilient" results.

"Retention of our low-cost and market leadership positions remain very important for Evraz.

"During the reporting period, the efficiency improvement programme delivered an EBITDA effect of $407m from customer focus and cost-cutting initiatives."

In 2020, Frolov said Evraz would continue to make "significant efforts" to improve safety and other vitally-important areas of sustainable development.

"The group has also set ambitious production targets for the year that should help it to reach solid results despite potential market headwinds."

At 0857 GMT, shares in Evraz were down 3.74% at 362.5p.

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