Steel Mills
Severstal Announces $1 Billion In Dividends
Written by Sandy Williams
July 31, 2014
OAO Severstal posted a net loss of $661 million for second quarter that includes a non-cash loss estimate of $1.066 billion on the disposal of Severstal Dearborn, Severstal Columbus, and PBS Coal and a foreign exchange gain of $199 million. Excluding these items, Severstal would have posted a net profit of $206 million. Second quarter EBITDA was $606 million.
Severstal NA sales of rolled products increased 6 percent q/q to 1.25 million tonnes (1.38 million net tons) for revenue of $1,066 million in second quarter. Revenue increased by 10.6 percent for the first half. The average selling price for the quarter was $827/tonne and $831/tonne ($750/ton and $754/ton) for the first half of 2014.
Severstal’s Board of Directors announced the intention to return approximately $1 billion to shareholders via a special dividend following the closure of the sale of Severstal Columbus and Severstal Dearborn. The company also intends to increase quarterly dividend payments to not less than 50 percent of net profit from the current 25 percent rate. The higher dividend will continue as long as the net debt/12-month trailing EBITDA ratio is below 1.0 times.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
Hybar lowers output forecast, owning up to EAF startup delay
Hybar LLC’s rebar mill in Osceola, Ark., is now melting scrap and will soon be fulfilling orders, according to CEO David Stickler, despite a six-to-eight-week delay caused by commissioning the world’s first Aura electrical system.
Steel Dynamics guides to more metal, more money in Q3
Steel Dynamics Inc. is bullish heading into the close of the third quarter, with all three of its operating segments tracking higher.
AHMSA opens doors to potential buyers as $1.3B asset auction nears
AHMSA is opening its doors to potential buyers to tour its steel plant and mining operations in northern Mexico in preparation for the next stage of its bankruptcy process: the auction of its assets.
USW seeks clarity on USS plans for Granite City Works
The United Steelworkers union has asked U.S. Steel to elaborate on its Granite City Works plans following reports that the steelmaker is ending processing at the facility.
Nucor maintains plate prices, opens October order book
Nucor aims to keep plate prices flat for a seventh straight month with the opening of its October order book.