Kuzbass Fuel Co. IFRS net profits plummet 93% in H1
KEMEROVO. Aug 26 (Interfax) - OJSC Kuzbass Fuel Company, or KTK, made net profits to International Financial Reporting Standards (IFRS) of 44 million rubles in the first half of this year, which was around 93% less than the 602 million rubles it reported for H1 last year, the company said.
KTK's sales revenue contracted 17% year-on-year to 9.584 billion rubles.
The main influence on net profit was from losses in the second quarter associated with exchange rate differences for forex-denominated credits amounting to 228 million rubles, quite a bit more than the figure for 2012 - 73 million rubles.
"At the end of H1 2013, revenue decreased by 17% to 9.584 million rubles compared to the same period in 2012. The decrease in revenues occurred in all key segments of the company's business, but the major impact on this indicator had a segment of export sales of own coal, which had shown a decline of 14%," the company said.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) for the six months dropped 33% to 987 million rubles. "The main influence on the reduction of these indices had a reduction of gross margin in the segment of the export sales of own coal from 16% in H1 2012 to 9% in H1 2013," KTK said. "Some support has had a rise in gross margin in the segment of the of own coal sales in the domestic market from 17% in H1 2012 to 28% in H1 2013 and the reduction of production cash costs by 27% to RUB 573 per tonne of produced coal," it said.
KTK is the sixth largest producer of steam coal in Russia, based on production volume in 2012. As of January 1 this year, its JORC resources amounted to 391 million tonnes of run-of-mine steam coal, confirmed and probable reserves to be worked in 2013-2030 - 174 million tonnes.
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.