NEWS RELEASE
For Immediate Release –
August 28, 2015
Chelyabinsk Zinc
Plant Announces H1 2015 Consolidated Financial Results
Chelyabinsk, Russia –
August 28, 2015 – Chelyabinsk
Zinc Plant (LSE, MICEX-RTS: CHZN), Russia's largest producer of zinc and zinc
alloys, is pleased to announce its IFRS financial results for the
six months ended June 30, 2015.
H1 2015 HIGHLIGHTS
- Chelyabinsk Zinc Plant’s (CZP) revenue totalled RUB 12,036 mln.
- EBITDA amounted to RUB 3,549 mln
or 29% of revenue.
- Net profit was RUB 3,129 mln or
26% of revenue.
Consolidated financial results
| (in millions of
Russian Roubles) |
H1
2015 |
H1
2014 |
Change,
% |
| Revenue |
12,036 |
6,733 |
79% |
| Gross
profit |
3,892 |
1,838 |
112% |
| Gross
margin, % |
32% |
27% |
|
|
EBITDA (1) |
3,549 |
1,175 |
202% |
|
EBITDA margin, % |
29% |
17% |
|
| Profit before
income tax |
3,927 |
1,218 |
222% |
| Net profit |
3,129 |
925 |
238% |
| Net
margin, % |
26% |
14% |
|
(1) EBITDA, for any relevant period, represents operating profit
before interest, income tax, depreciation and amortization.
EBITDA is not a measurement of CZP's operating performance
presented in the financial information, prepared in accordance with
IFRS, and should not be considered as an alternative to operating
profit or any other performance measure derived in accordance with
IFRS or other relevant financial framework.
Revenue
H1 2015 consolidated revenue increased by 79% to RUB 12,036 mln as compared to H1 2014.
The average LME zinc price in H1 2015 increased by 4% as
compared to the relevant period of the previous year and amounted
to US$ 2,134/tonne. The average LME lead quotes decreased by
1% to US$ 1,873 /tonne. Positive effect on revenue was made by
the growth of exchange rates (US Dollar, Pound Sterling, Kazakhstan
Tenge) against the Russian Rouble.
Revenue structure
In H1 2015, revenue of CZP increased by 98% as compared to the
H1 2014 and amounted to RUB 8,017 mln
(H1 2014: RUB 4,040 mln). The growth
of revenue was due to 64% increase of US dollar/Russian Rouble
exchange rate (H1 2015: RUB 57.4; H1
2014: RUB 35.0), increase of sales on
the domestic markets by 17% (H1 2015: 49.2 thousand tonnes; H1
2014: 41.9 thousand tonnes) and sales of precious metals (in H1
2014 there were no sales).
Revenue of The Brock Metal Company Limited for H1 2015 amounted
to RUB 2,949 mln, 100% higher than in
H1 2014 (RUB 1,472 mln). This
increase was due to 50% growth of Pound Sterling/Russian Rouble
exchange rate (H1 2015: RUB 87.8; H1
2014: RUB 58.6) and 23% growth of
zinc alloys sales (H1 2015: 19.5 thousand tonnes; H1 2014: 15.9
thousand tonnes).
Revenue of Nova Zinc for H1 2015 increased by 36% compared to H1
2014 and amounted to RUB 290 mln (H1
2014: RUB 213 mln). The increase was
due to 56% growth of Kazakhstan Tenge/Russian Ruble exchange rate
(H1 2015: RUB 0.31; H1 2014:
RUB 0.2).
Cost of Sales
| (in millions of
Russian Roubles) |
H1
2015 |
H1
2014 |
Change,
% |
| Raw materials and
consumables used in production |
5,501 |
3,068 |
79% |
| Utilities and
fuel |
1,035 |
597 |
73% |
| Staff cost |
645 |
461 |
40% |
| Depreciation and
amortization |
574 |
394 |
46% |
| Repairs and
maintenance |
381 |
328 |
16% |
| Mineral extraction
tax |
190 |
113 |
68% |
| Other taxes |
91 |
65 |
41% |
| Change in
work-in-progress |
68 |
174 |
(61%) |
| Production
overheads |
59 |
47 |
25% |
| Change in finished
goods |
(479) |
(427) |
12% |
| Other costs |
80 |
77 |
4% |
| Cost of
sales |
8,145 |
4,896 |
66% |
Cost of materials and consumables used primarily comprises of
the cost of zinc concentrate, zinc containing raw materials,
materials for alloys production and auxiliary materials used in the
production process. The main reasons of changes were the growth of
raw materials price due to increase of exchange rates against the
Russian Rouble, volume growth of purchased raw materials (due to
structure changes of zinc and zinc alloys sales related to JSC
«CZP») and growth of auxiliary materials prices.
Net profit
Net profit for H1 2015 totalled RUB 3,129
mln compared to RUB 925 mln
for H1 2014. The main factors of net income growth were the Russian
Rouble devaluation, growth of zinc and zinc alloys sales on Russian
domestic market and also the reversal of previously accrued
impairment loss of LLP “Nova Zinc” main assets.
About Chelyabinsk
Zinc Plant
Chelyabinsk Zinc Plant is the leading
Russian zinc producer. In 2014 the plant produced 168,601 tonnes of
saleable SHG zinc.
According to consolidated IFRS
accounts, revenue in 2014 was RUB 16,508
mln and EBITDA was RUB 3,825
mln.
Ordinary shares of CZP are traded on
the Moscow exchange MICEX-RTS
under ticker CHZN and Global Depository Receipts (GDR) are traded
on the London Stock Exchange under ticker CHZN.
Investor and Media
Contacts:
Natalya Vasilieva, PR, ngv@zinc.ru
Tel: +7 (351) 799-01-52
Evgeny
Ponomarev, IR, eyp@zinc.ru
Tel: +7 963 998-55-58
This announcement may include
forward-looking statements. CZP's actual results may differ
materially from those made in or suggested by the forward-looking
statements contained in this announcement. By their nature,
forwarding-looking statements involve risks and uncertainties
because they relate to events and depend on circumstances that may
or may not occur in the future. Forward-looking statements are not
guarantees of future performance. Even if the actual results are
consistent with the forward-looking statements contained in this
announcement, those results may not be indicative of results or
developments in future periods. CZP does not undertake any
obligation to update any forward-looking statements to reflect
events that occur or circumstances that arise after the date of
this announcement.