Steelmaker NLMK cuts 2020 capex by a quarter as Q1 profit slumps

摘要

Russian mining and steel company NLMK has cut its 2020 capital expenditure guidance by 25% as the coronavirus effect on the market, industry and economies caused its first-quarter profit to fall by the same margin year on year. NLMK now plans to spend $900 million-$950 million in capex this year (assuming a Rb80 dollar exchange rate), down from $1.2 billion earmarked originally. Although for the current strategy cycle through 2022, the company’s capex guidance remains at $900 million/year, under the stress scenario spending this year could ultimately be as low as $750 million. NLMK will revisit its new budget target in late June to decide whether it should be cut further.