KTK

News and events

2 February 2018

Kuzbasskaya Toplivnaya Company PJSC Reports Fourth Quarter and Full Year 2017 Operating Results

KEMEROVO, Russian Federation—February2, 2018 2:00 PM(UTC +7:00)—Kuzbasskaya Toplivnaya Company PJSC (KTK, MICEX: KBTK), one of the largest producers and exporters of thermal coal in Russia, today announced operating results for the fourth quarter and full year ended December 31,2017.

 

Fourth Quarter 2017 Key Production Results

 

Q4 2017 

% of total 

Q3 2017 

Chg.  

Q4 2016 

Chg.  

Coal production[1], in millions of tonnes, incl.:

3.80

 

3.39

12%

3.12

22%

Karakansky South open-pit mine

0.84

22%

1.09

(23%)

0.50

68%

Vinogradovsky open-pit mine

1.38

36%

1.31

5%

1.13

22%

Cheremshansky open-pit mine

0.74

19%

0.68

9%

0.66

12%

Bryansky open-pit mine

0.84

22%

0.31

171%

0.83

1%

Commercial products[2], in millions of tonnes

3.27

 

2.95

11%

2.70

21%

Coal processing[3], in millions of tonnes, incl.:

2.68

 

2.54

6%

2.11

27%

Sorted coal

1.69

63%

1.57

8%

1.09

55%

Washed coal

0.99

37%

0.97

2%

1.02

(3%)

Kaskad 1 washing plant

0.22

22%

0.17

29%

0.25

(12%)

Kaskad 2 washing plant

0.77

78%

0.80

(4%)

0.76

1%

Blasted rock mass[4], in millions of cbm

11.15

 

9.65

16%

8.87

26%

Average stripping transportation distance, km

2.67

 

2.99

(11%)

2.53

6%

 

  • In the fourth quarter of 2017 the Company produced 3.80 million tonnes of coal, a 22% increase over the year-ago period.
  • The volume of commercial products grew by 21%,reaching 3.27 million tonnes.
  • Coal processing remained rose by 27%, and amounted to 2.68 million tonnes, which is 6% more than in the third quarter of 2017.
  • Total coal washing went down by 3% compared to the 2016 indicator, to 0.99million tonnes, of which 78% belongs to the Kaskad2 washing plant.
  • Coal-sorting volume went up by 55% compared to the year-ago level and by 8% to the third quarter of 2017, and amounted to 1.69million tonnes.
  • The volume of blasted rock mass was 11.15 million cbm, an increase of 16% for the quarter and 26% more compared to the year-ago period.

 

Fourth Quarter 2017 Key Commercial Results

 

Q4 2017

% of total

Q3 2017 

Chg.    

Q4 2016

Chg.[5] 

Sales volume[6], in millions of tonnes, incl.:

3.73

-

3.16

18%

3.27

14%

Export sales volume

2.47

66%

2.25

10%

1.93

28%

Domestic sales volume

1.26

34%

0.91

38%

1.34

(6%)

Own coal

3.34

89%

2.88

16%

2.91

15%

Coal resale

0.39

11%

0.28

39%

0.36

8%

 

  • In the fourth quarter sales grew by 18% versus the volume of the previous quarter, reaching 3.73 million tonnes of coal. Year-over-year this figure shows a growth by 14%.
  • Fourth-quarter export sales went up by 10% to the third-quarter level, to 2.47 million tonnes, while compared to the year-ago period, export sales grew by 28%.
  • For the quarter, the share of export in total sales was 66%.
  • Domestic sales in the fourth quarter demonstrate a seasonal growth of 38% to 1.26 million tonnes.
  • The share of own-coal sales was 89%, while coal resale went up by 39 % quarter-over-quarter and by 8 % year-over-year, respectively.

 

Full Year 2017Key Production Results

 

FY 2017 

% of total 

FY 2016 

Chg.  

Coal production[7], in millions of tonnes, incl.:

13.23

 

11.68

13%

Karakansky South open-pit mine

3.77

28%

3.37

12%

Vinogradovsky open-pit mine

4.93

37%

4.65

6%

Cheremshansky open-pit mine

2.79

21%

2.38

17%

Bryansky open-pit mine

1.74

13%

1.28

36%

Commercial products[8], in millions of tonnes

11.44

 

10.12

13%

Coal processing[9], in millions of tonnes, incl.:

9.70

 

8.83

10%

Sorted coal

5.69

59%

4.71

21%

Washed coal

4.00

41%

4.11

(3%)

Kaskad 1 washing plant

0.80

20%

1.01

(21%)

Kaskad 2 washing plant

3.20

80%

3.11

3%

Blasted rock mass[10], in millions of cbm

38.65

 

33.56

15%

Average stripping transportation distance, km

2.79

 

2.55

9%

 

  • For the full year 2017 the Company produced13.23 million tonnes of coal, which is 13% more than in 2016.
  • Commercial product volume in 2017 stood at 11.44 million tonnes, an increase of 13% in yearly terms.
  • Coal processing amounted to 9.70 million tonnes, 10% more than in 2016.
  • Total coal washing fell by 3% to 4 million tonnes. This reduction is due to the fact that Kascad 1 washing plant went through a technical re-equipment to increase capacity.
  • Coal-sorting volume increased by 21%to5.69 million tonnes.
  • The volume of blasted rock mass was 38.65 million cbm, a growth by 15%.
  • The average stripping transportation distance in the period rose by 9% year-over-year and reached 2.79 km.

 

Full Year 2017Key Commercial Results 

 

FY 2017 

% of total

FY 2016 

Chg.   

Sales volume[11], in millions of tonnes, incl.:

12.08

-

11.11

9%

Export sales volume

8.72

72%

7.47

17%

Domestic sales volume

3.36

28%

3.63

(7%)

Own coal

11.05

91%

10.13

9%

Coal resale

1.04

9%

0.98

6%

 

In 2017 sales increased by 9% versus the volume of the previous year, reaching 12.08 million tonnes of coal.

Export sales amountedto8.72 million tonnes, representing72% of total sales.

Domestic-market coal sales fell by 7% compared to 2016, to 3.36 million tonnes.

Own-coal sales share was 91%.

Coal resale share declined by 6% compared to the year-ago level.

 

On April 5, 2018 the Company is planning to release its consolidated audited IFRS financial statements for the full year2017.

 

Contacts for media in Kemerovo:

Elena Sarycheva

Head of strategic communications department

+7 (3842) 77 18 80 (ext.1209)

es@oaoktk.ru

www.ktk.company

 

 

[1] Including Kaskad1 washing plant

[2] Volume of salable out put after sorting and washing of produced coal

[3] Coal washing and sorting

[4] Included in stripping

[5] Change, Q4 2017/Q4 2016

[6] Sales for the group of companies, including third-party coal resale

[7] IncludingKaskad1washingplant

[8] Volume of salable output after sorting and washing of produced coal

[9] Coal washing and sorting

Includedinstripping

[11]Sales for the group of companies, including third-party coal resale