Sign in

    Erica Ive • MetLife

    Erica Ive's questions to Eregli Demir ve Celik Fabrikalari TAS (ERELY) leadership

    Erica Ive's questions to Eregli Demir ve Celik Fabrikalari TAS (ERELY) leadership • Q1 2025

    Question

    Erica Ive from MetLife Investment Management sought clarification on the full-year working capital outlook, confirmed the EBITDA per tonne guidance, and asked if the Q2 EBITDA forecast was for the absolute number or per tonne. She also questioned the reason for a large interest payment in Q1.

    Answer

    Executive Idil Onay clarified the full-year working capital movement is expected to be neutral. She confirmed the $90-$100 EBITDA per tonne guidance for the year remains unchanged and that both absolute EBITDA and EBITDA per tonne in Q2 would be similar to Q1. The high Q1 interest payment was attributed to a Eurobond payment.

    Ask Fintool Equity Research AI

    Erica Ive's questions to Eregli Demir ve Celik Fabrikalari TAS (ERELY) leadership • Q1 2025

    Question

    Erica Ive from MetLife Investment Management sought clarification on the full-year working capital outlook, the EBITDA per tonne guidance, and the nature of the Q2 EBITDA forecast. She also asked about the high Q1 interest payment and the expectation for the rest of the year.

    Answer

    Executive Idil Onay clarified that the full-year working capital movement is expected to be neutral, with the Q1 inflow being offset in subsequent quarters. She confirmed the $90-$100 EBITDA per tonne guidance for the year remains unchanged. Onay also stated that the Q2 EBITDA forecast for a 'similar level' to Q1 applies to both the absolute dollar amount and the per-tonne figure. The large Q1 interest payment was attributed to a Eurobond payment, with no similar large payments expected in Q2.

    Ask Fintool Equity Research AI

    Erica Ive's questions to Eregli Demir ve Celik Fabrikalari TAS (ERELY) leadership • Q4 2024

    Question

    Erica Ive from MetLife sought clarity on long-term CapEx guidance beyond 2025, the company's commitment to its debt covenants, the potential impact of European anti-dumping legislation on its exports, and the CapEx implications of the planned electric arc furnace.

    Answer

    Idil Onay (Executive) guided for CapEx of $800-$850 million in 2025, potentially rising to $1 billion with gold mine investments, and then settling around $600-$650 million annually beyond 2025. She affirmed the company will not breach its 3.5x net debt/EBITDA covenant, projecting a peak below 3.3x. Onay sees no risk of increased European taxes but noted potential quota changes. She also clarified that the $3.2 billion Net Zero Roadmap cost includes the electric arc furnaces, which are scheduled for launch between 2028 and 2030.

    Ask Fintool Equity Research AI

    Erica Ive's questions to Eregli Demir ve Celik Fabrikalari TAS (ERELY) leadership • Q4 2024

    Question

    Erica Ive of MetLife sought clarification on annual CapEx guidance beyond 2025, the company's commitment to its debt covenants through 2030, the potential impact of European anti-dumping legislation on exports, and the CapEx implications of the planned electric arc furnace.

    Answer

    Executive Idil Onay guided for annual CapEx of $600-$650 million beyond 2025 and affirmed the company will remain below its 3.5x net debt/EBITDA covenant, with a projected peak of 3.3x in 2025. She sees no risk of increased European duties but acknowledged potential quota changes. Onay also mentioned that the Turkish government is working to close loopholes that have allowed Chinese imports to circumvent tariffs. The electric arc furnace is part of the $3.2 billion Net Zero plan, but a specific cost breakdown was not provided.

    Ask Fintool Equity Research AI