25 Sep 2009 17:35

Russia's Raspadskaya ends H1 with IFRS net losses of $11 mln

MOSCOW. Sept 25 (Interfax) - Raspadskaya , one of Russia's biggest coking coal producers, ended the first half of 2009 with net losses of $11 million under International Financial Reporting Standards (IFRS), the company said in a statement.

Exchange rate losses of $23.6 million had a major impact on the losses.

Sales revenue totaled $148 million in the half, while EBITDA amounted to $63 million.

Analysts from investment companies and banks polled by Interfax had predicted Raspadskaya would post net losses of $19 million in the period.

Raspadskaya's financial results for H1 2009 (in mlns of dollars)

Results H1 2009 H1 2008
Sales revenues 147.7 606,6
Gross profit 48.0 416.9
EBITDA 63.3 424.1
EBITDA margin (%) 43 70
Pretax profit (losses) (11.6) 358.8
Net profit (losses) (11.1) 261.8

Raspadskaya reduced its production costs in the first half per tonne of coal concentrate by 37% to 16.6 owing to the changing rate of the dollar against the ruble, a reduction in total mining output, stripping operations and a decrease in prices on materials. Monetary payments in the production per tonne of coal concentrate shrank by 13% in ruble equivalent.

"Despite the difficulties experienced by the coal sector in general and the drop in our sales in the first quarter of 2009, Raspadskaya was able to reach its pre-crisis production levels and coal sales gradually," the company's general director, Gennady Kozovoi, was quoted as saying in the press release. "It is forecast that, in the second half of 2009, indicators will increase substantially owing to ongoing recovery in demand for metallurgical and coking production, as well as improving price trends," he said.

Raspadskaya, one of Russia's biggest coking coal producers, includes three coalmining concerns - Raspadskaya, MUK-96 and Raspadsky Pit - and another mine under development, Raspadskaya Koksovaya, as well as a preparation plant and transport and other production facilities.

The Cyprus-registered Corber Enterprises Limited owns 80% of Raspadskaya. No.1 Russian steel producer Evraz Group, on the one hand, and Gennady Kozovoi, Raspadskaya's former CEO, and Alexander Vagin, the company's board chairman, the other, are the beneficiaries of Corber Enterprises on equal terms. The free float is 20%.


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