WOOD Flash – Severstal: 4Q19 – EBITDA in line, strong 2.9% dividend yield, despite weak quarter
Severstal announced its 4Q19 financial results this morning (31 January), which were 3% above both our forecast and the consensus on the EBITDA level.The EBITDA was down 24% and the FCF fell 71%, above our forecasts. This resulted in a quarterly dividend of USD 0.42/GDR, down 2% qoq, but 85% above our forecast and 11% higher than the consensus expected.
After the market closed yesterday (30 January), Severstal announced its dividend for 4Q19 at RUB 26.26/share, which equates to USD 0.42/GDR at the current exchange rate, or a 2.85% yield based on the closing GDR price. We expected only USD 0.28/GDR, given the weakness in the 4Q19 steel prices, so this appears a good result to us, albeit in line with the consensus. The results should be taken positively by investors, in our view.
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.
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