KEMEROVO, Russian Federation—October28, 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 operating results for the third quarter and nine months ended September 30,2016.
Third Quarter 2016 Key Production Results
|
|
Q32016 |
% of total |
Q2 2016 |
Chg. |
Q3 2015 |
Chg. |
|
Coal production[1], in millions of tonnes, incl.: |
3.04 |
|
2.73 |
11% |
2.62 |
16% |
|
Karakansky South open-pit mine |
1.13 |
37% |
0.84 |
34% |
0.92 |
23% |
|
Vinogradovsky open-pit mine |
1.20 |
39% |
1.13 |
6% |
1.03 |
16% |
|
Cheremshanskyopen-pit mine |
0,63 |
21% |
0.56 |
12% |
0.67 |
(6%) |
|
Bryansky open-pit mine |
0.08 |
3% |
0.20 |
(60%) |
0.00 |
- |
|
|
|
|
|
|
|
|
|
Commercial products[2], in millions of tonnes |
2,65 |
|
2.35 |
13% |
2.28 |
16% |
|
|
|
|
|
|
|
|
|
Coal processing[3], in millions of tonnes, incl.: |
2.41 |
|
2.12 |
14% |
2.05 |
18% |
|
Sorted coal |
1.38 |
57% |
1.05 |
31% |
1.09 |
27% |
|
Washed coal |
1.03 |
43% |
1.07 |
(4%) |
0.96 |
7% |
|
|
|
|
|
|
|
|
|
Kaskad1washing plant |
0.24 |
23% |
0.27 |
(11%) |
0.26 |
(8%) |
|
Kaskad 2 washing plant |
0.79 |
77% |
0.80 |
(1%) |
0.70 |
13% |
|
|
|
|
|
|
|
|
|
Blasted rock mass[4], in millions of cbm |
8.84 |
|
7.46 |
18% |
8.07 |
9% |
|
|
|
|
|
|
|
|
|
Average stripping transportation distance, km |
2.80 |
|
2.60 |
8% |
2.60 |
8% |
In the third quarter of 2016theCompanyproduced3.04milliontonnesofcoal, whichis0.25 million tones more than what was planned and an increase by 11% quarter-over-quarterand by 16% year-over-year.
The growth was due to all the mines, while the biggest share of the increase was seen at Karakansky South.
Consecutively, the volume of commercial products also grew, by 13 compared to the second quarter of 2016 and by 16% compared to the year-ago period.
Coal processing went up by 14% to the previous quarter and by 17% year-over-year.
The volume of blasted rock mass rose compared to both the previous quarter and the year-ago quarter, reaching 8.84 million cbm.
Third Quarter 2016 Key Commercial Results
|
|
Q32016 |
% of total |
Q22016 |
Chg. |
Q32015 |
Chg.[5] |
|
Sales volume[6], in millions of tonnes, incl.: |
2.94 |
|
2.33 |
26% |
2.58 |
14% |
|
Export sales volume |
1.94 |
66% |
1.75 |
10% |
1.70 |
14% |
|
Domestic sales volume |
0.99 |
34% |
0.58 |
71% |
0.88 |
12% |
|
|
|
|
|
|
|
|
|
Own coal |
2.49 |
85% |
2.27 |
10% |
2.17 |
15% |
|
Coal resale |
0.45 |
15% |
0.06 |
650% |
0.40 |
12% |
|
|
|
|
|
|
|
|
|
Average selling price, RUB/tonne[7] |
1,397 |
|
995 |
40% |
1,398 |
(0.07%) |
In the third quarter sales grew by 26% versus the volume of the previous quarter and by 14% year-over-year, reaching 2.94 million tonnes of coal.
Third-quarter export sales went up by 10% to the second quarter and by 14% in yearly terms.
Domestic sales rose by 71% quarter-over-quarter and by 12% compared to the year-ago period.
Third-quarter average coal selling price rose by 40% compared to the second-quarter figure, while falling by less than 1% compared to the year-ago quarter.
Key Production Results for the Nine Months to September30, 2016
|
|
9M2016 |
% of total |
9M 2015 |
Chg. |
|
Coal production[8], in millions of tonnes, incl.: |
8.56 |
|
7.99 |
7% |
|
Karakansky South open-pit mine |
2.87 |
34% |
2.78 |
3% |
|
Vinogradovsky open-pit mine |
3.52 |
41% |
3.40 |
3% |
|
Cheremshansky open-pit mine |
1.72 |
20% |
1.81 |
(5%) |
|
Bryansky open-pit mine |
0.45 |
5% |
0.00 |
- |
|
|
|
|
|
|
|
Commercial products[9], in millions oftonnes |
7.42 |
|
6.93 |
7% |
|
|
|
|
|
|
|
Coal processing[10], in millions oftonnes, incl.: |
6.72 |
|
6.16 |
9% |
|
Sorted coal |
3.62 |
54% |
3.36 |
8% |
|
Washed coal |
3.10 |
46% |
2.80 |
11% |
|
|
|
|
|
|
|
Kaskad1washing plant |
0.76 |
25% |
0.78 |
(2%) |
|
Kaskad 2 washing plant |
2.34 |
75% |
2.02 |
16% |
|
|
|
|
|
|
|
Blasted rock mass[11], in millions of cbm |
24.69 |
|
25.89 |
(5%) |
|
|
|
|
|
|
|
Average stripping transportation distance, km |
2.60 |
|
2.60 |
- |
For the nine months of 2016theCompanyproduced8.56milliontonnesofcoal, which is 7% more than in the previous corresponding period.
Commercial product volume for the nine months stood at 7.42 million tonnes, a growth of 7% in yearly terms.
Coal processing rose by 9% compared to the nine months of 2015.
The share of processed coal in the commercial products was 89%.
Total coal washing in the nine months grew by 11% to 2.80million tonnes.
Coal sorting volume also went up by 8% year-over-year and stood at 3.62 million tonnes.
During the nine months of 2016 the volume of blasted rock mass was 24.69 million cbm, a decrease by 5%.
Key Commercial Results for the Nine Months to September 30, 2016
|
|
9M2016 |
% oftotal |
9M2015 |
Chg. |
|
Sales volume[12], in millions oftonnes, incl.: |
7.84 |
|
7.54 |
4% |
|
Export sales volume |
5.54 |
71% |
5.12 |
8% |
|
Domestic sales volume |
2.29 |
29% |
2.42 |
27% |
|
|
|
|
|
|
|
Own coal |
7.22 |
92% |
6.83 |
(5)% |
|
Coal resale |
0.62 |
8% |
0.70 |
(11%) |
|
|
|
|
|
|
|
Average selling price. RUB/tonne[13] |
1,298 |
|
1,307 |
(0,6%) |
In the nine months of 2016 sales increased by 4% versus the volume of the previous corresponding period, reaching 7.84 million tonnes of coal.
Export sales stood at5.54 million tonnes, representing 71% of total sales. Domestic-market coal sales grew by 27%, to 2.29 million tonnes.
The share of own coal sales for the nine months stood at 92%, growing by 6% compared to the year-ago period, while coal resale accordingly fell by 11%.
Outlook for the fourth quarter of2016
According to the production plan, the Company is looking to produce3.2 million tonnes of coal in the fourth quarter of 2016.
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. The Company’ sproduction assets include three current plots and one projected plot at the Vinogradovsky mine in Kemerovo region, two washing plants and own railroad infrastructure located in the same industrial cluster. The Company operates retail networks in four regions of Western Siberia and 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 |
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.
We make every effort to check and verify the materials, but if you find any errors or inaccuracies please report it to pr@oaoktk.ru.
[1] IncludingKaskad1washingplant
[2] Volume of salable out put after sorting and washing of produced coal
[3] Sorted and washed coal
[4] Included in stripping
[5] Change, Q3 2016/Q3 2015
[6] Sales for the group of companies, including third-party coal resale
[7] Excluding rail tariffs and VAT
[8] IncludingKaskad1washingplant
[9] Volume of salable out put after sorting and washing of produced coal
[10] Sorted and washed coal
[11] Included in stripping
[12] Sales for the group of companies, including third-party coal resale
[13] Excluding rail tariffs and VAT
