Severstal quotes rose by 4% during trading after the company’s development strategy until 2028 was disclosed. The share price rose to a daily maximum of 1,866.6 rubles.
By 14:12 Moscow time on June 4, the price had adjusted to 1,823 rubles. It had increased by 1.5% since the close of the main trading session of the previous day. The Moscow Exchange Index added 1.2% since the close and amounted to 3,178.1 points, the metals and mining index rose by 1% to 8,143.4 points. Since the beginning of the year, benchmarks have increased by 2.6 and 4.8%, respectively, Severstal quotes – by 30.2%.
The company plans to increase EBITDA by 2028 by 150 billion rubles compared to the figure for 2023. This is reported in the company’s development strategy for the next five years. In 2023, Severstal’s EBITDA amounted to RUB 262.2 billion, and the company expects growth of 57.2% over a five-year horizon.
The company expects Severstal’s net debt to EBITDA ratio to remain below 1x by 2028. The indicator was 0.8x by the end of 2023.
The document also specifies that capital expenditures (CAPEX) may increase to RUB 170 billion in 2025. The company previously announced plans to increase CAPEX in 2024 compared to 2023 by 63% to RUB 119 billion. Accordingly, the indicator may grow 42.9% year-on-year in 2025.