News and events

KEMEROVO, Russian Federation—November18, 20162:00 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 unaudited interim consolidated financial results under IFRS for the third quarter and nine months ended September30,2016.

 

Financial highlights                                                                                                                                                                                                                                  

in millions of RUB	Q32016[1]	Q22016	Chg.	9M 2016	9M 2015	Chg.
Revenue	7,176	4,750	51%	18,269	17,676	3%
Cost of sales	6,173	4,845	27%	16,435	14,735	11%
Gross profit	1,003	(95)	n/a	1,834	2,941	(37%)
Gross profit margin	14.0%	-	-	10%	16.6%	(6.6 ppts)
Selling, general and administrative expenses	636	427	49%	1,682	1,825	(8%)
Operating profit	367	(522)	n/a	152	1 116	(86%)
Operating profit margin	5.1%	-	-	0.8%	6.3%	(5.5 ppts)
EBITDA[2]	736	(247)	n/a	1,138	1,955	(43%)
EBITDA margin	10%	-	-	6%	11.3%	(5.1 ppts)
EBITDA per tonne of coal, RUB	242	-	-	133	250	(47%)
Net profit	242	(541)	n/a	(151)	134	n/a
Net profit margin	3.4%	-	-	-	0.8%	-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

In the third quarter of 2016 revenue went up by 51% compared to the second quarter. Revenue for the nine months of 2016rose insignificantly compared to the nine months of 2015.

The revenue growth was due to the increase in coal prices on export directions.

 

Operating profit and EBITDA

In the third quarter of 2016operating income grew to RUB 367 million.

For the nine months operating profit fell by 86% compared to the results for the same period of 2015, and amounted to RUB 152 million.

Third-quarter gross profit was RUB 1,003 million, while in the nine months of 2016it went down by 37% compared to the year-ago period, to RUB 1,834 million.

Quarterly EBITDA showed a significant quarterly growth reaching RUB 736 million. Nine-month EBITDA fell by43%compared to the nine months of 2015.

Cost of sales in the third quarter rose by 27% to RUB 6,173 million. Cost of sales for the nine months of 2016increased by 11% to RUB 16,435 million.

Selling, general and administrative expenses in the third quarter amounted to RUB 636 million, up by 49% compared to the previous quarter.

For the nine months of 2016 this indicator fell by 8%, to RUB 1,682 million.

 

Net profit

In the third quarter of 2016, the Company shows a net profit of RUB 242 million, an increase of net profit in the third quarter compared to its negative value in the second quarter.

In the first nine months of 2016, the Company incurred a loss in the amount of RUB 151 million.

 

Debt portfolio management

                           

in millions of RUB	30.09.16	% of total	30.06.16	Chg.	30.09.15	Chg.[3]
Long-term loans	3,152	32%	4,635	(32%)	8,754	(64%)
Short-term loans	6,594	68%	4,717	40%	2,854	131%
Total debt, incl.:	9,747	100%	9,352	4%	11,608	(16%)
RUB loans	5,390	55%	5,346	0.8%	4,008	34%
Average interest rate for RUB loans	11.02%		11.01%	0.01 ppts	12.86%	(1.84 ppts)
USD loans	4,357	45%	4,006	9%	7,601	(43%)
Average interest for USD loans	3.97%		4.06%	(0,94 ppts)	4.27%	(0,3 ppts)
Cash and cash equivalents	3,835		3,647	5%	5,922	(35%)
Net debt	5,912		5,705	4%	5,686	4%
Net debt / 12M EBITDA	3.14		3.57	(12%)	1.70	85%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net debt at September 30, 2016stood at RUB 5,912 million, increasing slightly, by 4%, compared to both June 30, 2016, and year-over-year.

The net debt to 12-month EBITDA ratio showed a 12% quarterly drop and stood at 3.14. Compared to September 30, 2015, this indicator rose by 85%.

Cash and cash equivalents increased in the third quarter by 4%, to RUB 3,835 million, while falling by 35% compared to September 30, 2015.

As of September30, 2016, the average effective rate was 11.02% for loans denominated in RUB and 3.97% for foreign currency-denominated loans. The rates fell compared to the year-ago level by 1.84 ppts and 0, 3 ppts, respectively.

The loan portfolio is distributed among 11 Russian and foreign banks.

 

Cash flow and investments                                                                                                                                                    

in millions of RUB	Q32016	Q22016	Chg.	9M 2016	9M 2015	Chg.
Operating cash flow	144	369	(61%)	878	1,115	(21%)
Investment cash flow	(390)	(350)	11%	(1,331)	(489)	172%
Acquisition of property, plant and equipment	(473)	(411)	15%	(1,479)	(501)	195%
Financial cash flow	459	(317)	n/a	1,506	(2,708)	n/a
Net increase / (decrease) in cash and cash equivalents	213	(298)	n/a	1,053	(2,082)	n/a

 

 

 

 

 

 

 

 

 

 

 

 

 

In the third quarter of 2016 operating cash flow stood at RUB 144 million, while in the nine months of 2016it amounted to RUB 878 million.

Quarterly investment cash flow grew by 11% and reached RUB 390 million, while for the nine months it went up by 172% to RUB 1,331 million.

In the third quarter RUB 473 million were invested in property, plant and equipment, a quarterly increase of 15%. For the nine months it went up by 195% year-on-year.

Net cash flow from financial activities showed a growth both for the quarter and in yearly terms. Net increase in cash and cash equivalents amounted to RUB 213 million in the third quarter and RUB 1,053 million for the nine months, a rise over the indicators in the previous quarter and a year ago.

 

Outlook for the fourth quarter of 2016

• In accordance with the production plan, the volume of coal production in the fourth quarter of 2016 will rise to 3.2 million tonnes.

                                                

Contacts for analysts, investors, andmedia: Elena Sarycheva, head of public affairs department +7 (3842) 36-47-62 es@oaoktk.ru

KTK at a glance:

Kuzbasskaya Toplivnaya Company PJSC (KTK, MICEX: KBTK) is one of the largest manufacturers and exporters of thermal coal in Russia. Production assets of the Company include three current plots and one projected plot at the Vinogradovsky mine in Kemerovo region, as well as two washing plants and own railroad infrastructure located in the same industrial cluster with the production assets. The Company operates retail networks in four regions of Siberia and a wholesale network in Poland. The company employs over 4,400 people. KTK’s shares are traded on MICEX, the free float is 33.15%.                                                                                                                      

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Financial highlights under IFRS:

                                                      

in millions of RUB	2015	2014	2013
Revenue	24,994	22,250	22,490
Cost of sales	20,932	18,925	19,523
Production cash costs per tonne, RUB		577	611
EBITDA	2,697	2,518	2,422
EBITDA margin	10.8%	11%	11%
EBITDA per tonne, RUB	245	237	239
Net profit	37	7	640
Net profit margin	-	-	3%
Net debt	5,642	6,101	3,917
Net debt / EBITDA	2.09	2.42	1.62

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional information about the Company and investor calendar: www.oaoktk.ru/en/investors

 

Rounding and errors:

Certain numerical figures included in this press release have been subject to rounding adjustments. Accordingly, numerical figures shown as totals in certain tables may not be an arithmetic aggregation of the figures that preceded them. Calculations of change in % are made after rounding of figures.

 

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