For Immediate Release – August 29, 2016
Chelyabinsk Zinc Plant Announces H1 2016 Consolidated Financial Results
Chelyabinsk, Russia – August 29, 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, 2016.
H1 2016 HIGHLIGHTS
Chelyabinsk Zinc Plant’s (CZP) revenue totalled RUB 12,531 mln.
EBITDA amounted to RUB 2,792 mln or 22% of revenue.
Net profit was RUB 1,855 mln or 15% of revenue.
Consolidated financial results
|(in millions of Russian Roubles)||H1
|Gross margin, %||29%||32%|
|EBITDA margin, %||22%||29%|
|Profit before income tax||2,295||3,927||(42%)|
|Net margin, %||15%||26%|
(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.
H1 2016 consolidated revenue increased by 4% to RUB 12,531 mln as compared to H1 2015.
The average LME zinc price in H1 2016 decreased by 15% as compared to the relevant period of the previous year and amounted to US$ 1,799 / tonne. The average LME lead quotes decreased by 8% to US$ 1,731 / tonne. Positive effect on revenue was caused by the growth of US Dollar and Pound Sterling exchange rates against Russian Rouble.
In H1 2016, revenue of CZP increased by 5% as compared to the H1 2015 and amounted to RUB 9,233 mln (H1 2015: RUB 8,797 mln). The growth of revenue was due to 22% increase of US dollar/Russian Rouble exchange rate (H1 2016: RUB 70.3; H1 2015: RUB 57.4).
Revenue of the Brock Metal Company Limited for H1 2016 amounted to RUB 2,957 mln, which approximately equals the level of revenue for H1 2015 (RUB 2,949 mln).
Revenue of Nova Zinc for H1 2016 increased by 17% compared to H1 2015 and amounted to RUB 340 mln (H1 2015: RUB 290 mln). The growth was due to 55% decrease of Kazakhstan Tenge/Russian Ruble exchange rate (H1 2016: RUB 0.20; H1 2015: RUB 0.31).
Net profit for H1 2016 totalled RUB 1,855 mln comparing to RUB 3,129 mln for H1 2015. The main factors of net income decrease were zinc and zinc alloys domestic sales volume decrease, cost of sales growth, the reversal of previously accrued impairment loss of LLP “Nova Zinc” main assets in H1 2015.
About Chelyabinsk Zinc Plant
Chelyabinsk Zinc Plant is the leading Russian zinc and zinc alloys producer. In 2015 the plant produced 171,002 tonnes of salable SHG zinc.
According to consolidated IFRS accounts, revenue in 2015 was RUB 24,013 mln and EBITDA was RUB 4,789 mln.
Ordinary shares of CZP are traded on the Moscow exchange 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, [email protected]
Tel: +7 (351) 799-01-52
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.