Information agency Credinform has prepared a review of trends in activity of the largest Russian iron and steel companies. The largest enterprises (TOP-10 and TOP-1000) in terms of annual revenue were selected according to the data from the Statistical Register for the latest available periods (2014-2017). The analysis was based on data of the Information and Analytical system Globas.
|№||Name, INN,activity, region||Net assets value, bln RUB||Solvency index Globas|
|1||JSC NOVOLIPETSK STEEL
INN 4823006703 Lipetsk region Manufacture of cold-rolled steel sheet products
|2||JSC MMC NORILSK NICKEL
INN 8401005730 Krasnodar territory Manufacture of other non-ferrous metals
|3||JSC MAGNITOGORSK IRON & STEEL WORKS
INN 7414003633 Chelyabinsk region Manufacture of iron, steel and ferroalloys
|4||JSC EVRAZ NIZHNY TAGIL METALLURGICAL PLANT
INN 6623000680 Sverdlovsk region Manufacture of iron, steel and ferroalloys
INN 3528000597 Vologda region Manufacture of iron, steel and ferroalloys
INN 7402001769 Chelyabinsk region Manufacture of other non-ferrous metals
In liquidation since 08.11.2017
|997||LLC CHEBOKSARY INDUSTRIAL FOUNDRY
INN 2127318422 The Republic of Chuvashia Casting of steel
|998||LLC UMMC-STEEL CORPORATION
INN 6606021264 Sverdlovsk region Manufacture of high-quality hot-rolled products and wire rod
|999||JSC BOGUCHANSK ALUMINIUM SMELTER
INN 2465102746 Krasnoyarsk territory Manufacture of aluminum
INN 2703000858 Khabarovsk territory Manufacture of ingot steel
In liquidation since 11.10.2013
— growth of indicator in comparison with prior period, — decline of indicator in comparison with prior period.
For the last 10 years, the average values of net assets showed the decreasing tendency (Picture 1).
Despite the share of enterprises with insufficiency of property is high, it is decreasing over the past three years (Picture 2).
In 2016 total revenue of 10 largest companies amounted to 52% from TOP-1000 total revenue (Picture 3). This fact testifies relatively high level of concentration of production within the industry.
Trend to decrease in revenue is observed (Picture 4).
Profit and loss
In 2016 profit of 10 largest companies amounted to 76% from TOP-1000 total profit (Picture 5).
For the last ten years, the average industry net profit values show the decreasing tendency (Picture 6).
For the three-year period, the average net profit values of TOP-1000 companies show the increasing tendency. At the same time, the average net loss also increases (Picture 7).
For the last ten years, the average values of the current liquidity ratio were within the recommended values - from 1,0 to 2,0 with a trend to decrease (Picture 8).
For the last ten years, the decreasing tendency of ROI ratio is observed (Picture 9).
For the last ten years, this business activity ratio demonstrated the downward trend (Picture 10).
The highest share in total revenue of TOP-1000 falls for companies engaged in manufacture of iron, steel and ferroalloys (Picture 11).
70% companies of TOP-1000 are registered in the Register of small and medium-sized businesses of the Federal Tax Service of the Russian Federation (Picture 12).
Main regions of activity
Companies of TOP-1000 are unequally located across the country and registered in 74 regions of Russia. Companies largest by revenue are located in Chelyabinsk region (Picture 13).
Financial position score
An assessment of the financial position of TOP-1000 companies shows that the majority of them have average financial position (Picture 14).
Solvency index Globas
Most of TOP-1000 companies got Superior/High or Strong/Medium Solvency index Globas, this fact shows the ability of the companies to meet their obligations in time and fully (Picture 15).
A complex assessment of activity of the largest Russian iron and steel companies, taking into account the main indexes, financial ratios and indicators, demonstrates certain favorable trends and prevalence of negative factors, such as high concentration of production, reduction of net assets, revenue, net income and financial ratios.
According to the Federal State Statistics Service (Rosstat), in 2017 - 2018 the trend to some increase in indexes of industrial production in metallurgy is observed (Picture 16). Manufacturing in 2017 decreased by 0,8% for the 1st half-year, and increased by 1% for the whole year. Manufacturing for the 7 months of 2018 decreased by 0,5% and increased by 0,4 for 2017-2018 on average.
Information agency Credinform has prepared a ranking of the largest Russian metal companies. The companies with the largest annual revenue (TOP-10) have been selected for the ranking, according to the data from the Statistical Register for the latest available accounting periods (2014 - 2017). Then they have been ranked by return on investment ratio (Table 1). The analysis was based on the data from the Information and Analytical system Globas.
The whole set of indicators and financial ratios is to be considered in order to get a full and comprehensive insight into a company’s financial standing.
region, key activity
|Net profit (loss), billion RUB||Return on investment, %||Solvency index Globas|
INN 3528000597 Vologda region Manufacture of crude iron, ferroalloy, steel
|Mining and Metallurgical Company NORILSK NICKEL PJSC
INN 8401005730 Krasnoyarsk territory Manufacture of other non-ferrous metals
|NOVOLIPETSK STEEL PJSC
INN 4823006703 Lipetsk region Manufacture of cold-rolled steel
|MAGNITOGORSK IRON & STEEL WORKS PJSC
INN 7414003633 Chelyabinsk region Manufacture of crude iron, ferroalloy, steel
|EVRAZ NIZHNY TAGIL METALLURGICAL PLANT NJSC
INN 6623000680 Sverdlovsk region область Manufacture of crude iron, ferroalloy, steel
|VYKSA STEEL WORKS NJSC
INN 5247004695 Nizhny Novgorod region Manufacture of tubes, pipes, hollow profiles and related fittings, of steel
|RUSAL BRATSK ALUMINIUM SMELTER PJSC
INN 3803100054 Irkutsk region Production of aluminium
|CHELYABINSK METALLURGICAL PLANT PJSC
INN 7450001007 Chelyabinsk region Manufacture of crude iron, ferroalloy, steel
|EVRAZ CONSOLIDATED WEST SIBERIAN METALLURGICAL PLANT NJSC
INN 4218000951 Kemerovo region Manufacture of sectional hot-rolled steel and wire rods
|Chelyabinsk Pipe Plant PJSC
INN 7449006730 Chelyabinsk region Manufacture of tubes, pipes, hollow profiles and related fittings, of steel
|Total for TOP-10 companies||2066.4||2421.8||382.6||529.8|
|Average value for TOP-10 companies||206.6||242.2||38.3||53.0||28.75||27.62|
|Industry average value||1.8||n/a||0.2||n/a||25.36||n/a|
— growth compared to prior period, — decline compared to prior period.
Average value of return on investment ratio of TOP-10 companies is higher than the average industry value. In 2017 only three of TOP-10 companies demonstrated growth of the ratio.
Average industry values of return on investment ratio tend to decrease slightly within the last decade (Picture 2).