/KASE, April 8, 09/ - Company EURASIAN NATURAL RESOURCES
CORPORATION PLC (London), common shares of which are present in
Kazakhstan Stock Exchange (KASE) official list, provided to KASE the press
release of March 25, 2009 on the following:
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Financial Highlights for 2008
- Record Set of Results:
- Revenue of US$6.8 billion, up 66%; revenue, excluding new businesses,
up 47%;
- Underlying EBITDA of US$4.2 billion, up 117%;
- Underlying EBITDA margin of 61% (2007: 47%);
- First time incremental underlying EBITDA contribution from Serov and the
new aluminium smelter of US$0.3 billion;
- EPS (before exceptional items) of 205 US cents, up 111%; and
- Final dividend of 19 US cents per share; full year dividend of 31 US cents
per share. Dividend payout ratio of 15%.
- Control of Costs - total costs (excluding exceptional items) increased 19%.
Cost of sales, excluding the new businesses, increased 7%. Management
focused on the tight control of costs, particularly materials and labour, and
improving production efficiencies.
- Strong Balance Sheet - net available funds of US$2.0 billion. Operating
cash flow increased US$1.7 billion to US$2.8 billion.
Business Highlights for 2008
- Strong growth for the first nine months of 2008 buoyed by strong commodity
prices, particularly for ferroalloys and iron ore, and steady production
growth.
- The new aluminium smelter achieved its Phase 1 capacity run rate of 125
thousand tonnes in Q2 2008, well ahead of schedule.
- We completed the acquisitions of the Serov ferroalloys business and of
stakes in Tuoli and BML.
- Management took timely and decisive steps early in Q4 2008: to deal with the
unprecedented economic downturn; production cutbacks implemented
(approximately 35% for ferroalloys and 50% for iron ore); labour and raw
material costs reduced; and expansionary capex projects deferred (total
capex in 2008 was US$1.3 billion).
Outlook for 2009
- Production cutback in Ferroalloys to be maintained at 35% with Iron Ore at
40%, at least through H1 2009. Key to any recovery will be the end to
destocking.
- Whilst sales volumes so far in Q1 2009 have been better than expected, it is
not yet clear that this is sustainable. Any sustained recovery before 2010
seems unlikely, though with a continued lack of visibility it is difficult to
predict.
- Continued reduction of operating costs and the recent Kazakhstani tenge
devaluation should help us maintain our very competitive cost curve position.
- Working capital under control.
- Dividend policy reaffirmed with a commitment to maintain a payout ratio of
15%-20% of earnings, until visibility of the business cycle improves.
- Current valuations of international mining assets offer good acquisition
opportunities, which we are well positioned to capitalise on due to our strong
balance sheet.
- Acquired a 25% stake in Shubarkol, a major semi-coke and thermal coal
producer in Kazakhstan, in February 2009, with the objective of reducing raw
material costs.
- Succession: Dr Sittard has agreed to continue as CEO up to 30 September
2010. Miguel Perry, CFO, is to leave the Group on 30 June 2009.
For detailed information, please contact:
ENRC: Investor Relations
Mounissa Chodieva+44 (0) 20 7389 1879
James S. Johnson+44 (0) 20 7389 1862
Marianna Adams+44 (0) 20 7389 1886
ENRC: Public relations
Julia Kalcheva+44 (0) 20 7389 1861
M: Communications
High Morrison+44 (0) 20 7153 1534
Edward Orlebar+44 (0) 20 7153 1523
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EURASIAN NATURAL RESOURCES CORPORATION PLC press release full
version is available on KASE website at address
http://www.kase.kz/files/emitters/GB_ENRC/gbenrc_reliz_250309.pdf
[2009-04-08]