Raspadskaya posts $27 mln H1 EBITDA, below forecast
MOSCOW. Aug 22 (Interfax) - OJSC Raspadskaya had earnings before taxes, depreciation and amortization (EBITDA) of $27 million in H1 2013, the coking coal producer said in a statement.
This is way below the $35 million that analysts predicted in a consensus forecast for Interfax and 73% below the $99 million the company posted for H1 2012.
Revenue for the period was $301 million, above a forecast $277 million, but net losses of $68 million were higher than the $56 million that the analysts predicted.
Raspadskaya financial highlights to IFRS ($ mln):
| H1 2013 | H1 2013/ H2 2012 | H1 2013/H1 2102 | Consensus | |
| Revenue | 301 | 17% | 5% | 277,3 |
| EBITDA | 27 | -35,7% | -73% | 34,9 |
| Net loss | (68) | 467% | 265% | (56) |
Revenue grew mainly due to increased sales volumes of coal products. At the same time, the company reported a net loss due to sluggish domestic demand for coal products and redistribution of sales volumes during H1 2013 into the markets with a downward price trend, and the temporary suspension of operations at the Raspadskaya mine in May 2013.
The domestic market again accounted for a high 60% of total revenue. Low-price Chinese deliveries have allowed the company to reduce its stockpiles, and add a quarter of the revenues from the sales of coal products.
The premium Asian market and the Ukrainian market generated respectively 9% and 8% of the company's revenue.
In H1, 2013 the average selling price of semi-hard coking coal concentrate, defined as a netback price (restated under common delivery terms FCA, Mezhdurechensk), amounted to $97.7 in Russia, $64.3 in the Ukrainian market and $60.4 for the Asia-Pacific region.
Raspadskaya's sales prices are consistent with regional market trends of other producers and consumers of coal products.
In H1, 2013 the cash cost per tonne of coal concentrate decreased by 13% compared to the same period of 2012 and amounted to $54.2, mainly because of increased volumes of raw coal for preparation.
In July 2013 the company revised production plans and adjusted its forecast to 8 million tonnes of raw coking coal in 2013.
The company's CAPEX was not significant in the reporting period, totaling $43 million for H1 2013, mainly because of the lower investments required to maintain production capacity due to a reduced production program.
At the same time, the company said it had taken steps to considerably reduce operating costs amid unfavorable market conditions.
As at June 30, 2013, net debt amounted to $453 million. Cash and cash equivalents amounted to $100 million. "Management believes that the company has sufficient liquidity to continue running its operations and servicing debt in the next twelve months. In case of further deterioration of the market environment the company can count on the support of the parent entity Evraz, if needed," Raspadskaya said.
The Raspadskaya group includes Russia's biggest coking coal mine Raspadskaya, the MUK-96 deep mine, Raspadsky Razrez open pit, the Raspadskaya-Koksovaya mine currently under construction, an enrichment plant and infrastructure.
Evraz owns 82% of Raspadskaya shares.
