Raspadskaya IFRS net profits drop to $99 mln in H1
MOSCOW. Sept 29 (Interfax) - OJSC Raspadskaya saw its consolidated net profits to International Financial Reporting Standards (IFRS) drop by 57% year-on-year to $99 million in the first half from $266 million in H1 2010, the company reported.
Factoring in the adjusted figure for 2010 after a revaluation of CJSC Koksovaya ($105 million), net profits were down 20%.
Analysts Interfax surveyed yesterday had expected the company to post $109 million in net profits.
Raspadskaya's H1 sales revenues were down 19% at $369 million from $457 million a year earlier. The analysts had predicted $370 million.
EBITDA (earnings before interest, taxes, depreciation, and amortization) was down 31% at $180 million (analysts - $196 million). Expenditures on restoring the Raspadskaya mine came to 1.2 billion rubles (or $43.1 million) of an overall budget of 8.6 billion rubles, the company said.
Relative to the second half of last year, sales revenues were up by $137 million, consolidated EBITDA by $101 million, and net profits by $84 million. The company's EBITDA margin increased to 48% from 33%.
As of June 30, 2011, Raspadskaya's net cash position was $108 million, with cash money, its equivalent, and short-term bank deposits of $415 million.
Main Raspadskaya IFRS financial highlights for H1 2011, $mln
| H1 2011 | H1 2010 | % | |
| Sales revenues | 377 | 466 | (19%) |
| EBITDA | 180 | 259 | (31%) |
| EBITDA margin, % | 48% | 56% | |
| EBIT | 118 | 204 | (42%) |
| EBIT margin, % | 31% | 44% | |
| Net profits | 99 | 229 | (57%) |
| Adjusted net profits* | 99 | 124 | (20%) |
| Adjusted net profit margin, % | 26% | 27% |
*) Net profits less $105 million increase in provisional fair value of CJSC Koksovaya net assets purchased in April 2010 over fair value of the transferred consideration.
"Cash cost of production of [one tonne] of coal concentrate was $49.5 in H1 2011. The company views this high level of cash cost as short-term and associated with a decrease in production at Raspadskaya mine while a significant proportion of fixed costs remained high. With an increase of production and launching of new faces, including a 2nd face of Raspadskaya mine that is planned for the very nearest future, the company expects a significant decrease in production cost of 1t of coal concentrate. With the general for the coal industry tendency on growth of underground mining costs in place, the company remains competitive regarding cost of sales of coal products in comparison with Russian (on FCA basis) and international (on FOB basis) producers of semi-hard coking coal grades which supports the company's intention to recommence export supplies to Asia in Q4 2011," the company said in its report.
The average price of semi-hard coking coal concentrate grades on the basis of FCA Mezhdurechensk was $160.2 in the first half of this year as opposed to $117.3 in 2010, the company said.
The company signed contracts to 2013-2015 with major Russian metallurgical and coking companies during H1.
Raspadskaya intends to announce on October 13 its preliminary operating results for Q3 2011 and Q1-Q3 2011 along with some contracting results for Q4.
As reported, the company's shareholders approved in August dividends of 5 rubles per share, or a total payout of 3.9 billion rubles (upwards of $120 million at the current exchange rate).
Raspadskaya is a group of entities that mine coking coal, with some of the biggest mines in the country - Raspadskaya, MUK-96, Razrez Raspadskaya, the under-construction Raspadskaya Koksovaya - a benefaction plant, and infrastructural enterprises. A change in shareholders began right after the May series of methane blasts that killed 91 workers and brought the mine to a standstill until December.
Raspadskaya plans to mine 2.5 million tonnes of coal this year.
