WOOD Flash – Severstal: 4Q18 results – in line on EBITDA, but FCF falls 52% qoq on high working capital build up
Severstal reported its 4Q18 financial results this morning (5 February). The results were in line with the consensus on the EBITDA level, but 12% ahead on net income due to a USD 68m impairment reversal (mainly at Olcon) and a lower-than-expected effective tax rate (16.5%). FCF fell 52% qoq, despite a 3% qoq increase in EBITDA due to a 33% qoq increase in capex and a USD 168m working capital outflow. This was 11% below our expectations, despite the lower-than-expected capex (below the full-year guidance levels), due to the surprisingly high working capital outflow. We see these results as broadly neutral for the share price, as working capital movements can easily reverse in the following quarter.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.