16 Aug 2010 15:59

Raspadskaya sees Q2 revenue plummet 29%

MOSCOW. Aug 16 (Interfax) - OJSC Raspadskaya reduced sales revenue to Russian Accounting Standards (RAS) 29.2% year-on-year in Q1 2010 to 1.104 billion rubles due to an accident at its main coal mine on May 9, the coking coal producer said in a financial statement.

Gross profit fell 44% to 308.3 million rubles.

The company has said net losses were 1.1 billion rubles in Q2 2010.

The company said it had come up with a preliminary plant to deal with the aftermath of the accident, which killed 67 miners and left 23 unaccounted for, and to restore the deep mine. The plan is being discussed with federal agencies and ministries, the Kemerovo regional administration and industry experts.

The extent of the restoration, its timeframe and financing issues are being clarified, and some of the blueprints for the mine's reconstruction are ready for government appraisal.

It has been estimated that the mine, which is not currently producing any coal, will take months or even years to restore.

OJSC Raspadskaya also runs the Raspadsky strip mine and MUK-96 and Koksovaya deep mines. The Raspadskaya Koksovaya deep mine is under construction. The company also controls a coal enrichment plant, transport and other ancillaries.

Evraz Group, on the one hand, and Gennady Kozovoi, Raspadskaya's CEO, and Alexander Vagin, the company's board chairman, on the other, are the beneficiaries of the Cyprus-registered Corber Enterprises on equal terms. Raspadskaya's free float is around 20%.