Debt management and stable dividends

  • Dividend payout according to stated dividend policy
  • Medium-term net debt level below US$4,000 million
  • Target average net debt/EBITDA at 2.0x throughout the cycle

Following the successful deleveraging efforts of recent years, EVRAZ has a renewed focus on returning value to shareholders and further managing its debt. In 2018, robust free cash flow of US$1,940  million allowed the Group to significantly decrease its net debt.

Net debt (net debt/EBITDA), US$ million

During the reporting period, EVRAZ returned a total of US$1.6 billion to its shareholders in the form of dividends for a dividend yield of 17%, establishing a new record for the Company.

In 2018, EVRAZ announced an updated dividend policy envisaging returning at least US$300 million to shareholders each year, provided that the Group’s net debt/EBITDA ratio remains below 3.0x. Going forward, the remaining free cash flow after implementing investment programme can be distributed as dividends. Even in the events of a market correction and weaker profitability, EVRAZ remains committed to its long-term average net debt/EBITDA at 2.0x , which will allow the Group to maintain its stated dividend policy.

Dividends and share buybacks, US$ million
US$ million 2018 2017 2016 2015
Dividends 1,556 430 0 0
Shares buyback 0 0 0 336
Total 1,556 430 0 336
Yield 17 % 9 % 0 12 %