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Evraz

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EVRAZ plc
Company typePublic limited company
LSE: EVR
FTSE 100 Index component
IndustrySteel
Mining
Founded1992 (Moscow)
HeadquartersLondon, England, UK
ProductsSteel
Steel products
Vanadium Slag
Iron ore
Coal
RevenueIncrease US$13.224 billion (2021)[1]
Increase US$4,583 billion (2021)[1]
Increase US$3.524 billion (2021)[1]
OwnerRoman Abramovich (30.5%)[2]
Number of employees
71,591 (2021)[1]
Websitewww.evraz.com

EVRAZ plc (Russian: Евраз) is a UK-incorporated multinational steel manufacturing and mining company part-owned by Russian oligarchs.[3] It has operations mainly in Russia as well as the USA, Canada, and Kazakhstan. As of 2015, the ultimate beneficial owners were Russian oligarchs Roman Abramovich (31.03%), chairman Alexander Abramov (21.59%) and CEO Aleksandr Frolov (10.78%) with the remaining 36.6% shares owned by other shareholders.[2]

History

The company was founded as a small metal-trading business in 1992.[4] On 2 June 2005 Evraz Group floated some 8.3 percent of its shares in the form of GDR in London.[5] The company was priced at $14.50 per GDR implying an equity value of $5.15 billion.[5] An additional 6% stake was placed in January 2006, resulting in a total free-float of 14.3%.[6]

The company acquired Claymont Steel from H.I.G. Capital in 2008 for US$564.8 million.[7] The mill was closed in December 2013.[8]

Sanctions

In the aftermath of the 2022 Russian invasion of Ukraine, the British government accused the company of "providing financial services or making available funds, economic resources, goods or technology that could contribute to destabilising Ukraine."[9] After sanctions were applied to Abramovich, owner of 29% of the company,[10] the Financial Conduct Authority suspended the trading of Evraz shares on the London Stock Exchange.[11] The non-executive members of the board subsequently resigned.[10]

On 10 August 2022, Reuters reported that Evraz was seeking to sell its North American units.[12]

Operations

Evraz sets aside its coal business by the end of the year 2021 on the premise of all needed approvals, according to the group's report of the 1st half of 2021. In the very beginning of 2021 EVRAZ announced expecting to spin off its coal division consolidated in Raspadskaya. In April 2021, the group's board of directors approved the demerger of its coal assets to be shared pro rata among Evraz shareholders.[13] In January 2022, Evraz shareholders also approved the demerger of the group's coal business, consolidated at PJSC "Raspadskaya" after the final decision made by the board of directors of Evraz last December.[14]

The business structure is as follows:[15]

Steel

Ore

  • Evrazruda mining and enrichment facilities in Kemerovo Oblast
    • In the Kemerovo Oblast: Tashtagol Mine, Kaz Mine, Sheregesh Mine, Gurev Mine, Abagur Sinter and Enrichment Plant
  • Kachkanarsky Ore Mining and Processing Enterprise – Vanady – KGOK pit mining in Sverdlovsk region;
  • Sukha Balka Mines, Kryvyi Rih, Ukraine.

Coal

  • Yuzhkuzbassugol coking coal mining in the Kuzbass Region
  • Raspadskaya/ coking coal company with three mines and one open pit in Mezhdurechensk, Kemerovo region, EVRAZ owns 82% of Raspadskaya

Vanadium

  • EVRAZ Vanady Tula
  • EVRAZ Nikom
  • EVRAZ East Metals AG

Sales and logistics

  • Metallenergofinance MEF, supplying electricity and heat for Evraz facilities
  • Nakhodka Commercial Sea Port in the Russian Far East, handling most of Evraz' exports
  • Trading House EvrazHolding/TH EvrazHolding working in domestic sales
  • Trading House EvrazResource/TH EvrazResource working in domestic sales

Corporate structure

The company's interests in the majority of its subsidiaries are held indirectly through its ownership of Mastercroft. In June 2006, Evraz Group announced a transaction that resulted in the transfer to Greenlease International Holding of a 50% interest in Lanebrook Ltd., an entity controlled by the principal shareholders of Evraz Group. As of April 2015 Lanebrook Ltd. held 63.70% of the company's shares, with the ultimate beneficial owners being Roman Abramovich (31.03%), chairman Alexander Abramov (21.59%) and CEO Aleksandr Frolov (10.78%).[2]

Carbon footprint

Evraz reported Total CO2e emissions (Direct + Indirect) for 31 December 2020 at 43,620 Kt (+280/+0.6% y-o-y).[16]

Evraz's Total CO2e emissions (Direct + Indirect) (in kilotonnes)
Dec 2018 Dec 2019 Dec 2020
38,790[17] 43,340[18] 43,620[16]

See also

References

  1. ^ a b c d "Annual Results 2021" (PDF). Evraz. Retrieved 25 February 2022.
  2. ^ a b c "Share information 20 April 2015". Evraz. Archived from the original on 15 October 2018. Retrieved 2015-03-17.
  3. ^ Pfeifer, Sylvia (2022-03-10). "Evraz shares suspended after Abramovich sanction news". Financial Times. Retrieved 2022-03-10.
  4. ^ "History of the Evraz Group". steelonthenet.com. Retrieved 28 March 2015.
  5. ^ a b EVRAZ Raises $422M in soft London IPO Archived 2013-07-01 at the Wayback Machine St Petersburg Times, 3 June 2005
  6. ^ "Russian and Kazakh firms set for relegation from FTSE 100". City AM. 29 May 2013. Archived from the original on 25 September 2018. Retrieved 28 March 2015.
  7. ^ Sandle, Paul (2007-12-10). "Evraz Group agrees to buy Claymont Steel for about 564.8 mln usd cash". AFX News Limited. Thomson Financial News.[dead link]
  8. ^ "Evraz Claymont Steel shutting down". Gannett. 14 October 2013.
  9. ^ "Evraz shares sink after Abramovich sanctions and government accusations of backing Russian forces". CityAM. 2022-03-10. Retrieved 2022-03-10.
  10. ^ a b Sweney, Mark (11 March 2022). "Evraz board resigns after sanctions imposed on Roman Abramovich". The Guardian. Retrieved 11 March 2022.
  11. ^ "Notice Of Temporary Suspension Of Listing From The Official List". London Stock Exchange. 10 March 2022. Retrieved 11 March 2022.
  12. ^ Anilkumar, Radhika (10 August 2022). "Evraz selling North American units". U.S. News & World Report. Retrieved 10 August 2022.
  13. ^ "Evraz demerges of its coal business". Interfax.com. 2021-08-05.
  14. ^ "Акционеры Evraz одобрили выделение угольных активов" (in Russian). Интерфакс. 2022-01-11.
  15. ^ Our business Archived 2011-12-05 at the Wayback Machine Evraz
  16. ^ a b "Evraz's Sustainability Report for 2020Q4" (PDF). Archived from the original (PDF) on May 16, 2021. Alt URL
  17. ^ "Evraz's Sustainability Report for 2020Q4" (PDF). Archived from the original (PDF) on May 16, 2021. Alt URL
  18. ^ "Evraz's Sustainability Report for 2020Q4" (PDF). Archived from the original (PDF) on May 16, 2021. Alt URL
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