Liepaja, 2013-05-09 15:20 CEST (GLOBE NEWSWIRE) --
JSC "Liepājas metalurgs" confirms that in January 2013 the steel production equipment operated with 98% of capacity and 74,646 tons of steel were produced. In the above period production of rolled stock was organized with 91.5% of equipment capacity and 64,565 tons of rolled stock were produced, while sold were 66,828 tons, where the average selling price was 355.76 LVL/t, which is by LVL11.24 lower than in the budget of JCS "Liepājas metalurgs" for year 2013 as estimated at 10.12.2012. JSC "Liepājas metalurgs" net turnover from economic activity in January, year 2013 amounts to LVL 33.58 mil, while loss amounts to LVL 2.5 mil.
We would like to inform you that at 10.12.2012 - the time of preparing the annual budget prognosis of JSC "Liepājas metalurgs" for year 2013, the following factors were taken as basis for the calculations:
- the estimate of the selling price of rolled stock was prepared on the basis of export price forecast of “MEPS International Ltd.”;
- the prognosis of scrap purchase price was based on the actual price level in 2012;
- for the prognosis of power costs the obligatory electricity surcharge tariff, which was foreseeable at the moment, was used as the Public Utilities Commission had not yet approved the final tariff;
- it was planned that the company production will be at 100% capacity.
Taking into account the above forecasts and their grounds a negative cash flow in the amount of LVL 25.6 mil was provided for in the budget of JSC "Liepājas metalurgs" for 2013. Shortage of assets in the amount of LVL 96.1 mil in the budget of JSC "Liepājas metalurgs" would only be in case when the current creditors and “UniCredit S.p.A.” (long-term loan) would demand repayment of the entire basic sum.
It is necessary to pay special attention to the unpredictable concurrence of both internal and external circumstances and their influence on activity of JSC "Liepājas metalurgs", which make the budget forecast for year 2013 prepared 10.12.2012 unrealistic.
Līga Šenfelde
Assistant of chief Economist
63455926, shenfelde@metalurgs.lv