KTK net profit plunges three quarters to 329 mln rubles in Jan-Sept
KEMEROVO. Nov 25 (Interfax) - Kuzbasskaya Toplivnaya Company (KTK) saw its net profit to International Financial Reporting Standards drop nearly three quarters to 329 million rubles in the first nine months of 2013 from 1.277 billion rubles in the same period of 2012, the Russian coal miner reported.
KTK's revenue slumped 6% to 15.931 billion rubles in the nine months, and earnings before interest, tax, depreciation and amortization (EBITDA) fell 29% to 1.754 billion rubles.
However, in the third quarter revenue grew 36% compared to the second quarter to 6.347 billion rubles and EBITDA jumped 60% to 767 million rubles. The company posted a net profit of 285 million rubles in the third quarter, compared to a net loss of 42 million rubles in the second quarter.
KTK attributes the strong improvement of financial results in the third quarter to seasonal growth in demand on the domestic market, an improvement in the quality of its coal and the development of its retail network.
Coal sales on the domestic market are demonstrating the highest gross margin in the company's history - 44%, KTK first deputy CEO Eduard Alekseyenko said.
KTK also said that due to "contracts with buyers of washed coal in the Asia-Pacific region in the segment of export sales of own coal quarter-on-quarter revenue rose by 18%" to 4.618 million rubles or 74% of consolidated quarterly revenue.
EBITDA fell primarily due to the "reduction of gross margin in the segment of export sales of own coal from 18% in 9M 2012 to 10% in 9M 2013. This was partially offset by the growth of the gross margin in the segment of own coal sales on the domestic market to 33% in the nine months from 22% a year earlier and the reduction of production cash costs by 17% to 604 rubles per tonne of produced coal, KTK said.
Cost of sales in the nine months decreased by 1% to 13.754 billion rubles as a result of lower production cash costs and coal purchased for resale.
KTK includes coal mining enterprises (the Vinogradovsky, Karakansky-South and Cheremshansky open-pit mines), two washing plants (Kaskad and Kaskad-2), a distribution network, and infrastructure enterprises.
According to the company's report to Russian Accounting Standards (RAS) for Q2 2013, General Director Igor Prokudin controls 50.001% of its shares through Haver Holding Limited, and Laycraft Ltd, which is wholly owned by Chairman of KTK's Board of Directors Vadim Danilov, has 15.61%. In May, Cayman Islands-based Prosperity Capital Management secured the right to dispose of 10.41% of KTK's voting shares. KTK's data indicates that 34.39% of its shares are in free float.
