Analysts expect Russia's Raspadskaya to post IFRS net loss of $19 mln in H1
MOSCOW. Sept 24 (Interfax) - Analysts from investment companies and banks polled by Interfax have predicted Russian coal producer Raspadskaya will post net losses of $19 million under International Financial Reporting Standards (IFRS) in the first half of 2009 compared to $262 million in net profit in the same period of 2008.
Raspadskaya will release its IFRS results for the first half on September 25.
The decline in the company's financial results can be attributed to a drop in coal prices. Uralsib said coking coal prices have fallen 67% from a year ago to $46 per tonne, while sales have declined 26%.
Troika Dialog analysts said Raspadskaya would have operating costs of about $35 per tonne of concentrate in the period, which is the reason for a low level of EBITDA. In addition, about $20 million in losses from exchange rate changes will also have a negative impact on the company's results, they said.
Raspadskaya reduced coal production 4% to 4.17 million tonnes in the first half of 2009 compared to the second half of 2008 and 18% compared to the first half. The average concentrate price in the second quarter of 2009 was 7% lower than in the first quarter at 1,487 rubles per tonne.
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%.