Kuzbass Fuel Co posts 391 mln rubles in IFRS losses for Q2
KEMEROVO. Aug 24 (Interfax) - OJSC Kuzbass Fuel Company (KTK) posted 391 million rubles in net losses according to international financial reporting standards (IFRS) for April-June 2012, the company said in a statement.
The company posted 200 million rubles in net profit for the second quarter of 2011.
It was earlier reported that analysts offered varying estimates on the company's possible profit results for the second quarter of this year. According to a consensus forecast compiled by Interfax, KTK was to post 434 million rubles in net profit. At the same time, experts at Alfa-Bank , Sovlink, and Metropol forecast net losses, averaging out at 359.7 million rubles.
The company's net profit for January-June 2012 decreased by 36% year-on-year to 505 million rubles.
KTK's Q2 sales revenues were down 27% year-on-year at 4.853 billion rubles, a little better than the analysts' forecast (4.843 billion rubles).
The change in the company's financials is attributable to a seasonal decrease in domestic sales volume. However, the company's sales revenues for the first half as a whole were up 13% year-on-year at 11.505 billion rubles.
In association with the temporary slump in sales revenues, along with rising sales costs against a backdrop of a higher overburden ratio, EBITDA (earnings before interest, taxes, depreciation, and amortization) for H1 contracted 7% to 1.375 billion rubles. Q2 EBITDA amounted to 259 million rubles.
The analysts Interfax polled expected to see KTK's EBITDA drop 34% year-on-year to 347 million rubles in Q2.
Commenting on the company's financials, KTK's First Deputy General Director Eduard Alekseyenko said, "The company already demonstrated losses in the amount of 275 million rubles in the second quarter of 2010, during the time of the company's IPO, but the current situation has substantial differences." "In 2012, the losses were associated with exchange rate variance on debts denominated in foreign currency. With the price of coal falling 30% on international markets and a higher overburden ratio, KTK was able to get 'to zero' in its operational outcome," Aleksyenko is quoted in the statement as saying.
KTK chief Igor Prokudin noted that the Q2 results were expected. "Summer is for coal companies usually a period of declining profits. It was like that last year and this year is no exception. Also, the situation on the markets, which began to change in the first quarter of this year, had an effect on the results of the second quarter," he is quoted as saying.
During the first half, KTK increased coal sales by 8% to 4.85 million tonnes. Exports amounted to 3.06 million tonnes, which is roughly the same as for H1 last year, but coal sales on the home market were up 24% at 1.79 million tonnes.
During H1 this year, the average sales price for KTK coal (factoring in resold coal acquired from other companies) was 1,318 rubles per tonne, or 13% over the 1,165 rubles of the same period last year. The average coal sales price on the Russian market was up 12% at 1,256 rubles per tonne and the average export price rose 14% to 1,354 rubles.
KTK ended last year as Russia's seventh-largest thermal coal producer. It sold 10.66 million tonnes, of which 8.58 million tonnes it produced and 2.08 million tonnes it acquired from other coal producers.
Kuzbass Fuel Company consists of the coal mines Vinogradvosky, Karakhansky-Yuzhny, and Cheremshansky, and distribution networks Kuzbasstoplivosbyt, Transugol, Altaiskaya Toplivnaya Company, and Novosibirskaya Toplivnaya Corporation, and the infrastructural outfits Kaskad-Energo, Anzhero- Sudzhenskaya CHP plant, and TEK Metret.
