On August 13 2013, OJSC "Kuzbasskaya Toplivnaya Company" (RTS/MICEX: «KBTK»), one of the largest producers and exporters of thermal coal in Russia, is pleased to announce operational results for 2 quarter and 6 months 2013.
Key production results for the Q2 2013
|
|
Q2 2013
|
% of
total |
Q1 2013
|
Ch.
|
Q2 2012
|
Ch.1
|
|
Coal production, mln. tonnes, incl.: |
2.50
|
|
2.39
|
5%
|
1.90
|
32%
|
|
Karakansky South
|
0.75
|
30%
|
0.77
|
-3%
|
0.72
|
4%
|
|
Vinogradovsky
|
0.90
|
36%
|
0.69
|
30%
|
0.28
|
221%
|
|
Cheremshansky 2
|
0.86
|
34%
|
0.93
|
-8%
|
0.91
|
-5%
|
|
Coal processing3, |
2.14
|
86%
|
1.77
|
21%
|
1.62
|
32%
|
|
Sorted coal
|
1.43
|
57%
|
1.41
|
1%
|
1.41
|
1%
|
|
Washed coal
|
0.71
|
28%
|
0.36
|
97%
|
0.21
|
238%
|
|
Stripping, mln. cbm., incl.: |
14.78
|
|
14.70
|
1%
|
19.42
|
-24%
|
|
Blasted rock mass4, mln. cbm.
|
6.64
|
45% |
6.37
|
4%
|
9.43
|
-30%
|
|
Average stripping transportation distance, km
|
2.40
|
2.60
|
-8%
|
3.04
|
-21%
|
|
|
Average stripping ratio5 |
5.90
|
|
6.10
|
-3%
|
10.21
|
-42%
|
In Q2 2013 the Company produced 2.5 mln. tonnes of coal, which is 5% higher than Q1 level. Compared to Q2 2012, production rose on 32%. The volume of coal processing totaled 2.14 mln. tonnes, which is 21% higher than in Q1. The share of processed coal in the commercial products of the Company increased from 74% in Q1 to 86% in Q2. This growth is due to the launch of washing plant "Kaskad-2", which produced 0.53 mln. tonnes of high quality enriched coal in Q2. The volume of coal washing increased by 97% to 0.71 mln tonnes in Q2. The volume of coal sorting increased by 1% compared to Q1 and amounted 1.43 mln tonnes. The volume of stripping rose on 1% to 14.78 mln. cbm., which is 24% lower than in Q2 2012. The volume of blasted rock mass amounted 6.64 mln. cbm., increased over the quarter by 4%. The average stripping transportation distance in the last quarter fell by 8% to 2.4 km. The average stripping ratio in Q2 was down on 3% to 5.90, and decreased on 42% compared to Q2 2012. According to the production plans of the Company, the average stripping ratio will continue to decline year on year.
Key commercial results for the Q2 2013
|
|
Q2 2013
|
% of
total |
Q1 2013
|
Ch.
|
Q2 2012
|
Ch.6
|
|
Sales volume 7, |
2.16
|
|
2.38
|
-9%
|
2.04
|
6%
|
|
Export sales volume
|
1.74
|
81%
|
1.40
|
24%
|
1.45
|
20%
|
|
Domestic sales volume
|
0.42
|
19%
|
0.98
|
-57%
|
0.59
|
-29%
|
|
|
|
|
|
|
|
|
|
Own coal
|
2.02
|
94%
|
2.12
|
-5%
|
1.80
|
12%
|
|
Coal resale
|
0.14
|
6%
|
0.26
|
-46%
|
0.24
|
-42%
|
|
Average selling price, RUB/tonne8 |
1,025
|
|
1,028
|
-
|
1,271
|
-19%
|
|
Average export price |
980
|
|
900
|
9%
|
1,259
|
-22%
|
|
Average domestic price |
1,207
|
|
1,211
|
-
|
1,302
|
-7%
|
According to the results of the Q1 2013, domestic sales fell due to seasonal consumption decrease in Russia. On the domestic market energy coal in the country is used mostly to generate heat, so the demand peaks in the Q4 of each year, and shows a decrease in the Q2. The Company's sales in the Q2 fell by 9% to 2.16 mln. tonnes of coal. In the Q2 export sales grew by 24% to 1.74 mln. tonnes, due to the additional volume of washed coal produced at the "Kaskad-2" washing plant. For the quarter, the share of exports in total sales of coal increased from 59% to 81%. Coal sales in the domestic market decreased by 57% due to the seasonal demand and amounted 0.42 mln. tonnes. The volume of coal resale decreased by 46% to 0.14 mln. tonnes. In Q2 2013, the average selling price of coal remained at the level of the Q1, amounting to RUB 1,025 per tonne. Compared to Q2 2012 the average price decreased by 19%. The average selling price in the domestic market also remained at the level of the Q1 2013 and amounted RUB 1,207 per tonne. The average selling price of coal for export increased by 9% reaching RUB 980 per tonne.
Key production results for the 1H 2013
|
|
1H 2013
|
% of total
|
1H 2012
|
Ch.
|
|
Coal production, mln. tonnes, incl.: |
4.89
|
|
4.08
|
20%
|
|
Karakansky South
|
1.52
|
31%
|
1.47
|
3%
|
|
Vinogradovsky
|
1.59
|
33%
|
0.65
|
145%
|
|
Cheremshansky 9
|
1.79
|
36%
|
1.98
|
-10%
|
|
Coal processing10, |
3.91
|
80%
|
3.41
|
15%
|
|
Sorted coal
|
2.84
|
58%
|
3.00
|
-5%
|
|
Washed coal
|
1.07
|
22%
|
0.41
|
161%
|
|
Stripping, mln. cbm., incl.: |
29.48
|
|
38.71
|
-24%
|
|
Blasted rock mass11, mln. cbm
|
13.01
|
44% |
18.97
|
-31%
|
|
Average stripping transportation distance, km
|
2.50
|
3.19
|
-22%
|
|
|
Average stripping ratio 12 |
6.00
|
|
9.49
|
-37%
|
For the first half of 2013 the Company produced 4.89 mln. tonnes of coal, which is 20% higher than fort the same period last year. Most of the growth came from the open-pit mine "Vinogradovsky", which produced 1.59 mln. tonnes of coal, which is 145% higher than in 1H 2012. The volume of coal processing amounted 3.91 mln. tonnes, which is 15% than in the 1H 2012. The share of processed coal in the commercial products of the Company increased by 4 percentage points up to 80%. After the launch of the second washing plant "Kaskad-2", the total coal washing volume increased by 161% to 1.07 mln. tonnes. The volume of coal sorting decreased by 5% compared to the same period last year and amounted 2.84 mln. tonnes. The amount of stripping decreased by 24% to 29.48 mln. cbm. by the cancellation of services of external contractors and reduction the amount of stripping to the planned level. The volume of blasted rock mass totaled 13.01 mln. cbm., decreasing by 31%. The average distance of stripping transportation fell by 22% to 2.50 km. in 1H 2012. The average stripping ratio in the 1H 2013 decreased by 37% to 6.00.
Key commercial results for the 1H 2013
|
|
1H 2013
|
% of total
|
1H 2012
|
Ch.
|
|
Sales volume 13, |
4.54
|
|
4.85
|
-6%
|
|
Export sales volume
|
3.14
|
69%
|
3.06
|
3%
|
|
Domestic sales volume
|
1.40
|
31%
|
1.79
|
-22%
|
|
|
|
|
|
|
|
Own coal
|
4.14
|
91%
|
3.97
|
4%
|
|
Coal resale
|
0.40
|
9%
|
0.88
|
-55%
|
|
Average selling price, RUB/tonne14 |
1,027
|
|
1,318
|
-22%
|
|
Average export price |
945
|
|
1,354
|
-30%
|
|
Average domestic price |
1,210
|
|
1,256
|
-4%
|
Coal sales for the 1H 2013 decreased by 6% to 4.54 mln tonnes. Exports increased by 3% and amounted 3.14 mln tonnes, which corresponds to 69% of total sales. Domestic sales decreased by 22% to 1.40 mln. tonnes. The volume of coal resale decreased by 55% to 0.40 mln. tonnes to increase own coal sales. In 1H 2013 the average price of coal sales amounted RUB 1,027, which is 22% lower than in the same period of previous year. The main driver of price reduction was exports to the Asia-Pacific region. The average price of export sales decreased by 30% to RUB 945 per tonne. The average price in the domestic market has declined significantly less, only by 4% and totaled RUB 1,210 per tonne.
On August 22, 2013 the Company plans to release its unaudited interim IFRS Statements for the 6 months 2013. A conference-call to discuss the financial results and to ask the questions will be held the same day at 20:00 PM Kemerovo time (UTC +7:00), 17:00 PM Moscow time (UTC +4:00), 13:00 PM London time (UTC +1:00), 9:00 AM New York time (UTC -4:00).
Conference call details and the presentation will be published separately in investor calendar on the Company’s website: www.oaoktk.ru/en/investors.
Contacts for analysts and investors:
OJSC "Kuzbasskaya Toplivnaya Company", Moscow
Vasily Rumyantsev
Head of Moscow office, IRO
Tel.: +7 (495) 787-68-05
E-mail: vkr@oaoktk.ru
Contacts for press:
OJSC "Kuzbasskaya Toplivnaya Company", Kemerovo
Elena Sarycheva
Head of public affairs department
Tel.: +7 (3842) 36-47-62 (Russian only)
E-mail: es@oaoktk.ru
Additional information about the Company and investor calendar: www.oaoktk.ru/en/investors
Company at a glance:
OJSC "Kuzbasskaya Toplivnaya Company" is one of the largest manufacturers and exporters of thermal coal in Russia. Production assets of the Company include three current and one projected opent-pit mines, two washing plants located in the same industrial cluster in the Kemerovo region. The company employs over 4,000 employees. Shares of OJSC "Kuzbasskaya Toplivnaya Company" are traded on the RTS/MICEX, the free float is 34.39%.
News and announcements (Russian only): www.facebook.com/oaoktk
Presentations: www.slideshare.net/oaoktk
Video: www.youtube.com/oaoktkru
FY 2012 Financial Highlights under IFRS:
|
RUB mln.
|
2012
|
2011
|
2010
|
|
Revenue |
23,104
|
23,939
|
14,160
|
|
Cost of sales |
18,982
|
19,404
|
11,457
|
|
Production cash costs per tonne, RUB
|
690
|
653
|
509
|
|
EBITDA |
3,479
|
3,911
|
2,134
|
|
EBITDA margin
|
15%
|
16%
|
15%
|
|
EBITDA per tonne, RUB
|
399
|
448
|
304
|
|
Net profit |
1,810
|
2,018
|
823
|
|
Net profit margin
|
8%
|
8%
|
6%
|
|
Net debt |
4,681
|
2,663
|
1,754
|
|
Net debt / EBITDA
|
1.35
|
0.68
|
0.82
|
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 vkr@oaoktk.ru.
1 Change, Q2 2013/Q2 2012
2 Including “Kaskad-1” washing plant
3 Coal washing and sorting
4 Included in stripping
5Share of coal produced in stripping
6Change, Q2 2013/Q2 2012
7 Sales for the group of companies, including third parties coal resale
8 Excluding rail tariffs and VAT
9Including “Kaskad-1” washing plant
10Coal washing and sorting
11Included in stripping
12Share of coal produced in stripping
13Sales for the group of companies, including third parties coal resale
14Excluding rail tariffs and VAT
15Metal Expert, January 2013
