Annual report 2014

Železiarne Podbrezová a.s. Annual report 2014 3n Klobal QarOets all tube QanuJaGturers struKKled [itL liQ - ited supplies to tLe QininK industr] due to a lonK terQ deGline in oil priGes. 8Le eGonoQiG Kro[tL oJ tLe )urozone [as [eaO - ened b] trade eQbarKoes iQposed b] )9 1eQber 7tates on 6ussia and viGe versa as a politiGal Qove [itL reKard to solv - inK tLe 6ussian 9Orainian Grisis. 8Lis Las proved ineJJeGtive and an end to tLe eQbarKo is not in siKLt. ;e Gonsider tLe proƤt loss reported Jor as suGGessJul priQaril] due to tLe JaGt tLat Kro[tL [as aGLieved in alQost all evaluation indiGators. 8Le net proƤt oJ )96 tLousand reported in line [itL -nternational *inanGial 6eportinK 7tan - dards -*67 [as Qainl] aGLieved b] e\GeedinK tLe planned operatinK proƤt [LiGL [as Kenerated b] savinKs oJ Gosts on ra[Qaterial and enerK] GonsuQption. &] Gontrast tLe proƤt loss JroQ ƤnanGial aGtivities GonsistinK priQaril] oJ reGeived dividends JroQ subsidiaries [as at tLe planned level and [as lo[er tLan last ]earŭs ƤKure. 8Le reGonstruGtion and Qodernisation oJ a JaGilit] Jor tLe Gon - tinuous GastinK oJ steel Garried out at tLe end oJ loKiGall] reUuired a Kradual set up oJ optiQal paraQeters oJ tLe Qanu - JaGturinK JaGilit] [LiGL started to deliver tLe e\peGted beneƤts and eGonoQiG eJJeGts in praGtiGe priQaril] in tLe seGond LalJ oJ . An iQportant JaGtor [as tLe introduGtion oJ a ne[ JorQat oJ Gast steel billets. 8Lis GLanKe enabled us to sub - stantiall] reduGe tLe voluQe oJ spoilaKe durinK tLe produGtion oJ Lot rolled seaQless tubes and preGision Gold dra[n tubes. 8Le )uropean 'oQQission Gonsiders it essential Jor tLe )u - ropean reKion to reQain an iQportant steel produGer not onl] Jor eGonoQiG soGial and environQental reasons but also to ensure tLe seGurit] oJ supplies as steel produGtion is linOed to a nuQber oJ otLer industries. 8LereJore in tLe )u - ropean 'oQQission adopted an aGtion plan to support tLe steel industr] as a neGessit] and notiƤed tLe 1eQber 7tates oJ tLeir obliKation to Greate Gonditions Jor produGtion in tLeir Gountries to ensure tLe GoQpetitiveness oJ tLe industr] GoQ - pared [itL produGers in Asia and tLe 97A. -n tLe +ov - ernQent oJ tLe 7lovaO 6epubliG also adopted b] a resolution its AGtion Plan Jor 7teel [LiGL Lo[ever [as not iQpleQent - ed in speGiƤG aQendQents to la[s and reKulations [itLin tLe leKislative JraQe[orO oJ tLe 7lovaO 6epubliG. 8Lese GLanKes [ill deterQine tLe availabilit] oJ )9 Junds Jor sGienGe researGL and innovative teGLnoloK] transparent eleGtriGit] priGes and Jees Jor Garbon dio\ide eQissions [LiGL [ill GoQpreLensive - l] inGrease GoQpetitiveness in tLe Juture. As in tLe previous ]ear tLe plan Jor Las been prepared [itL a Kreat deal oJ Gaution. AltLouKL [e are Gurrentl] [it - nessinK a sliKLt reGover] in eGonoQiG Kro[tL partiGularl] in developed )uropean Gountries tLis pLenoQenon Gannot be Gonsidered perQanent. ,o[ever our GoQpetitive advantaKe Gonsists in a LiKL deKree oJ ƥe\ibilit]. &97-2)77 A'8-:-8= ProduGtion and 7ales &usiness strateK] Las lonK been Gentrall] Gontrolled b] Železiarne Podbrezová a.s. and QanaKed on a KeoKrapLi - Gal basis via tradinK GoQpanies P-P)< -8A0-A 7.p.A. Pipe\ -nternational A+ ŽP 8rade &oLeQia a.s. 703:696 7p. z o.o. P-P)< 7/ s.r.o. and Pipe\ (eutsGLland +Qb,. 8Le s]steQatiG [orO oJ our sales people tLrouKLout en - sured a suJƤGient nuQber oJ GontraGts to utilise tLe produG - tion GapaGit] suJƤGientl] Lo[ever tLis [as aGLieved due to priGe GoQproQises [Lere [e oJten Jailed to obtain tLe reUuired proƤtabilit] Jor speGiƤG business Gases. -n [e produGed a total oJ tonnes oJ steel [LiGL is an inGrease oJ tonnes GoQpared to tLe pre - vious ]ear. 3J tLe total Uuantit] produGed tonnes [ere used Jor o[n produGtion oJ steel tubes and tonnes [ere sold to e\ternal GustoQers. -n tLe Ƥrst LalJ oJ steel Qill produGtion [as aJJeGted b] tLe optiQisation oJ GastinK paraQeters Jor tLe ne[ teGLniGal eUuipQent JroQ (anieli. ;e tested and introduGed a nuQber oJ teGLniGal GLanKes suGL as tLe adNustQent oJ tLe Uuantit] oJ Gool - inK [ater in tLe priQar] and seGondar] GoolinK GirGuit and a GLanKe in tLe position oJ GoolinK nozzles tLe adNustQent oJ paraQeters oJ eleGtroQaKnetiG stirrinK tLe testinK oJ var - ious t]pes oJ GastinK po[ders and various GastinK speeds dependinK on tLe JorQat and Uualit] etG. 8Le Qost iQpor tant GLanKe Lo[ever [as tLe adNustQent oJ tLe sLape oJ seQi ƤnisLed input Qaterials Jor tLe tube rollinK Qill to tLe QQ JorQat oJ tLe Uuadrate [itL a QQ radius [LiGL resulted in a siKniƤGant reduGtion oJ spoilaKe and Qaterial sGrap in botL tLe tube rollinK Qill and tube dra[inK Qill. 8Le Qodernisation oJ tLe Gontinuous GastinK oJ steel [as also positivel] reƥeGted in tLe reduGtion oJ do[ntiQe [LiGL Gon - ƤrQs tLe LiKL reliabilit] oJ tLe ne[ teGLnoloK]. -n 3Gtober a reGord QontLl] produGtion oJ tonnes oJ steel [as aGLieved. -n [e produGed a total oJ tonnes oJ Lot rolled seaQless tubes oJ [LiGL tonnes [ere available Jor sale and tonnes [ere JurtLer proGessed in tLe plants oJ Železiarne Podbrezová a.s. AltLouKL tLe produGed Uuanti - t] iQplies an inGrease oJ tonnes i.e. . GoQpared [itL tLe preGedinK ]ear Gannot be assessed positivel] in terQs oJ produGtion do[ntiQe. -n tLe Ƥrst LalJ oJ tLe ]ear probleQs [itL tLe Uualit] oJ tLe raGO oJ tLe pusL benGL Ger - tain parts Lad to be replaGed and tLe Uualit] oJ elonKator G]linders Gontinued to reoGGur. -n tLe seGond LalJ oJ tLe ]ear [e identiƤed GraGOs in tLe Kirder oJ tLe punGL press. Pro - visional repairs oJ tLis probleQ reUuired lenKtL] produGtion do[ntiQe. ;orn parts oJ tLe teGLniGal eUuipQent [ere not 6eport b] tLe &oard oJ (ireGtors 3n tLe business aGtivities assets and ƤnanGial perJorQanGe in and inJorQation on tLe business plan 13