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OAO Severstal (SVST)

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Tuesday 05 February, 2008

OAO Severstal

2007 Operational Results

OAO Severstal
05 February 2008


Severstal Releases 2007 Operational Results


February 5, 2008 - Severstal (LSE: SVST) today released its 2007 operational
results as follows.


PRODUCTION VOLUMES

2007 overview

Production of crude steel in 2007 was 17.5 million tons, broadly in line with
2006 numbers. The decrease in production at SNA during the period (due to the
planned relining of blast furnace 'C') was compensated for mainly by growth in
Russian Steel. Production of rolled products was 2% up year on year.


The increase in production of iron ore and pellets in 2007 was 6% (total
production for sales). Net of intercompany sales production was 16% up year on
year.


Total production for sales of coal was down 3% year on year. Net of intercompany
sales production was 15% down year on year.


Consolidated production (net of intercompany sales)

         Total throughput,
            metric tons                  2006        2007    2007/   Q3 2007    Q4 2007   Q4/Q3
                                                             2006

Hot metal: total
throughput                          12 768 370  12 949 237      1%  3 029 173  3 312 632     9%

Crude steel: total
throughput                          17 436 366  17 463 341      0%  4 012 139  4 437 934    11%

Production for sale, metric tonnes

Coal:                                5 229 106   4 408 155    -16%   644 052   1 071 447    66%

Coking coal
concentrate                          2 602 485   2 351 055    -10%   360 710    548 385     52%

Coking coal                           633 716     230 428     -64%    59 516    123 182    107%

Steam coal                           1 992 905   1 826 672     -8%   223 826    399 880     79%

Iron ore:                            3 712512    4 305810      16%   1 131553   1 244826    10%

Iron ore pellets                     3 712512    4 159512      12%   1 077148   1 152932     7%

Iron ore concentrate                        0      146298       -      54405      91893     69%

Semifinished products                1 517 824   1 820 624     20%   335 942    510 281     52%

Rolled products:                     13 005039   13 254438      2%   3 148942   3 288138     4%

Hot-rolled strip and
plate                                5 977573    5 909881      -1%   1 405910   1 443466     3%

Cold-rolled sheet                    2 144779    1 903037     -11%    444314     503090     13%

Galvanised and other
metallic coated sheet                1 344736    1 468292       9%    384880     354347     -8%

Color coated sheet                     147740      229518      55%     61355      46723    -24%

Long products                        3 079455    3 430257     -11%    784755     852552      9%

Rails                                  310756      313454       1%     67727      87961     30%

Downstream products:                 1 706 757   1 941 870     14%   475 541    501 887      6%

Metalware products                   1 200 478   1 135 828     -5%   276 556    270 564     -2%

Large diameter pipes                    11800      299331       -      81005     113448     40%

Other tubes and pipes,
formed shapes                          427657      469514      10%    117981     117875      0%

Wheels, axles, tires                    66822       37197     -44%         0          0      -


Segmental information

Russian Steel

     Total throughput, metric
               tons                     2006       2007    2007/   Q3 2007    Q4 2007   Q4/Q3
                                                           2006

Hot metal: total
throughput                           8 199480   8 758538      7%   2 138479   2 251229     5%

Crude steel: total
throughput                          11 296415  11 898556      5%  2 892 148  3 060 197     6%

Production for sale, metric tonnes

Semifinished products                580 554    871 862      50%   135 309    241 333     78%

Rolled products:                     8 945148   9 426112      5%  2 338 311  2 392 747     2%

Hot-rolled strip and plate           4 628124   5 003897      8%  1 264 760  1 284 851     2%

Cold-rolled sheet                    1 571865   1 435163     -9%   334 606    369 764     11%

Galvanised and other
metallic coated sheet                 698622     735454       5%   176 810    180 135      2%

Color coated sheet                    147740     229518      55%    61 355     46 723    -24%

Long products                        1 898797   2 022080      6%   500 780    511 274      2%

Downstream products:                  480874     512770       7%   128 714    130 884      2%

Metalware products                     53217      43256     -19%    10 733     13 009     21%

Other tubes and pipes,
formed shapes                         427657     469514      10%   117 981    117 875      0%


SNA

         Total throughput,
            metric tons                2006      2007    2007/  Q3 2007  Q4 2007  Q4/Q3
                                                         2006
Hot metal: total
throughput                          2 142808  1 656314    -23%  271 187  429 525    58%

Crude steel: total
throughput                          2 573418  1 979725    -23%  319 987  506 241    58%

Production for sale, metric tonnes

Rolled products:                    2 619268  2 386045     -9%  547 938  573 017     5%

Hot-rolled strip and
plate                               1 400240  1 185333    -15%  230 161  265 478    15%

Cold-rolled sheet                    572914    467874     -18%  109 708  133 326    22%

Galvanised and other
metallic coated                      646114    732838      13%  208 070  174 212   -16%
sheet


Lucchini

     Total throughput, metric
               tons                    2006      2007    2007/  Q3 2007  Q4 2007  Q4/Q3
                                                         2006
Hot metal: total
throughput                          2 426082  2 534385      4%  619 507  631 878     2%

Crude steel: total
throughput                          3 566533  3 585060      1%  800 004  871 496     9%

Production for sale, metric tonnes

Semifinished products               1 318270  1 222808     -7%  309 269  311 933     1%

Rolled products:                    2 238156  2 329701      4%  491 232  576 229    17%

Long products                       1 927400  2 016247      5%  423 505  488 268    15%

Rails                                310756    313454       1%   67 727   87 961    30%

Downstream products:                 109818     72838     -34%   9 241    4 364    -53%

Metalware products                    42996     35641     -17%   9 241    4 364    -53%

Wheels, axles, tires                  66822     37197     -44%       0        0      0


Metalware

         Total throughput,
            metric tons                 2006       2007    2007/  Q3 2007  Q4 2007  Q4/Q3
                                                           2006
Production for sale, metric tonnes

Downstream products:

Metalware products                  1 104 265  1 056 931     -4%  256 581  253 191    -1%


Izhora pipe mill

     Total throughput, metric
               tons                   2006      2007    2007/  Q3 2007  Q4 2007  Q4/Q3
                                                        2006
Production for sale, metric tonnes

Downstream products:

Large diameter pipes                 11800    299331       -    81 005  113 448    40%



Mining

         Total throughput,
           metric tonnes                2006       2007    2007/   Q3 2007    Q4 2007   Q4/Q3
                                                           2006

Production for sale, metric tonnes

Coal:                               9 662 428  9 463 103     -2%  1 841 459  2 352 829    28%

Coking coal
concentrate                         5 635 327  5 789 428      3%  1 261 377  1 491 359    18%

Coking coal                         2 034 196  1 847 003     -9%   356 255    461 590     30%

Steam coal                          1 992 905  1 826 672     -8%   223 826    399 880     79%

Iron ore:                           13 917724  14 695474      6%  3 748 119  3 854 344     3%

Iron ore pellets                     9 443996  10 044542      6%  2 552 362  2 678 107     5%

Iron ore concentrate                 4 473728   4 650932      4%  1 195 757  1 176 237    -2%


AVERAGE SELLING PRICES

Consolidated sales

        Sales prices (EXW), USD/ton           2007    Q3 2007   Q4 2007   Q4/Q3

Coal:                                           58        59        67      12%
Coking coal concentrate                         84        85        90       6%
Coking coal                                     31        30        32       7%
Steam coal                                      26        22        30      35%
Iron ore:                                       70        67        74      10%
Iron ore pellets                                75        74        77       5%
Iron ore concentrate                            59        54        65      20%
Semifinished products
Rolled products:                               727       755       730      -3%
Hot-rolled strip and plate                     617       651       633      -3%
Cold-rolled sheet                              676       690       674      -2%
Galvanised and other metallic coated sheet     883       875       865      -1%
Color coated sheet                           1 219     1 300     1 170     -10%
Long products                                  818       857       810      -6%
Rails                                          740       687       790      15%
Downstream products:                         1 072     1 119     1 160       4%
Metalware products                             973     1 026       999      -3%
Large diameter pipes                         1 764     1 898     1 900       0%
Other tubes and pipes, formed shapes           789       823       795      -3%
Wheels, axles, tires                         2 683         0         0       0


Russian Steel

        Sales prices (EXW), USD/ton           2007    Q3 2007   Q4 2007   Q4/Q3

Semifinished products                          436       471       459      -2%
Rolled products:                               666       699       664      -5%
Hot-rolled strip and plate                     620       657       639      -3%
Cold-rolled sheet                              662       678       663      -2%
Galvanised and other metallic coated sheet     900       892       875      -2%
Color coated sheet                           1 219     1 300     1 170     -10%
Long products                                  601       658       563     -14%
Downstream products:                           791       823       797      -3%
Metalware products                             815       819       811      -1%
Other tubes and pipes, formed shapes           789       823       795      -3%


SNA

        Sales prices (EXW), USD/ton           2007    Q3 2007   Q4 2007   Q4/Q3

Rolled products:                               707       726       703      -3%
Hot-rolled strip and plate                     605       620       603      -3%
Cold-rolled sheet                              721       730       706      -3%
Galvanised and other metallic coated sheet     865       857       855       0%


Lucchini

   Sales prices (EXW), USD/ton     2007      Q3 2007       Q4 2007      Q4/Q3

Semifinished products               605           517           522          1%
Rolled products:                    996       1 042         1 016           -2%
Long products                      1 036      1 102         1 054           -4%
Rails                               740           687           790         15%
Downstream products:               2 671      2 927         2 564          -12%
Metalware products                 2 662      2 927         2 564          -12%
Wheels, axles, tires               2 683            0             0          -


Metalware

   Sales prices (EXW), USD/ton     2007      Q3 2007       Q4 2007      Q4/Q3

Downstream products:
Metalware products                  923           968           982          2%


Izhora pipe mill

   Sales prices (EXW), USD/tonne     2007     Q3 2007      Q4 2007      Q4/Q3

Downstream products:
Large diameter pipes                 1 764     1 898        1 900            0%


Mining

   Sales prices (EXW), USD/ton     2007      Q3 2007       Q4 2007      Q4/Q3

Coal:                                58            59            67         12%
Coking coal concentrate              84            85            90          6%
Coking coal                          31            30            32          7%
Steam coal                           26            22            30         35%
Iron ore:                            70            67            74         10%
Iron ore pellets                     75            74            77          5%
Iron ore concentrate                 59            54            65         20%



Quarterly numbers for 2006 are unable because Severstal started to report
quarterly results since 2007.


Notes:

Semifinished products include slabs, billets, ingots, steel casting and
forgings.


                      This information is provided by RNS
            The company news service from the London Stock Exchange