On November 8 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 the 3 quarter and 9 months 2013.
Key production results for the Q3 2013
|
|
Q3 2013
|
% of
total |
Q2 2013
|
Ch.
|
Q3 2012
|
Ch. 1
|
|
Coal production, mln. tonnes, incl.: |
2.50
|
|
2.50
|
-
|
2.24
|
12%
|
|
Karakansky South
|
0.80
|
32%
|
0.75
|
7%
|
0.78
|
3%
|
|
Vinogradovsky
|
0.89
|
36%
|
0.90
|
-1%
|
0.55
|
62%
|
|
Cheremshansky 2
|
0.80
|
32%
|
0.86
|
-7%
|
0.92
|
-13%
|
|
Coal processing3, |
2.13
|
85%4
|
2.14
|
-
|
1.58
|
35%
|
|
Sorted coal
|
1.33
|
62%
|
1.43
|
-7%
|
1.37
|
-3%
|
|
Washed coal
|
0.80
|
38%
|
0.71
|
13%
|
0.21
|
281%
|
|
"Kaskad-1" washing plant
|
0.25
|
31%
|
0.18
|
39%
|
0.21
|
19%
|
|
"Kaskad-2" washing plant
|
0.55
|
69%
|
0.53
|
4%
|
-
|
-
|
|
Stripping, mln. cbm., incl.: |
14.81
|
|
14.78
|
-
|
13.81
|
7%
|
|
Blasted rock mass5, mln. cbm.
|
7.50
|
55%6 |
6.64
|
13%
|
7.01
|
7%
|
|
Average stripping transportation
distance, km |
3.00
|
2.607
|
15%
|
3.20
|
-6%
|
|
|
Average stripping ratio 8 |
5.90
|
|
5.90
|
-
|
6.16
|
-4%
|
In Q3 2013 the Company has produced 2.50 mln. tonnes of coal, which is 7% higher than the previously published production plan. Additional amount needed to replace coal purchases from third-party producers, to meet the needs of retail network. Compared with the level of Q3 2012 coal production increased by 12%. The volume of coal processing remained at the level of Q2 2013 and amounted to 2.13 mln. tonnes, which is 35% higher than in Q3 2012. Such an increase in year-on-year due to introduction of the washing plant "Kaskad-2". The share of processed coal in the commercial products amounted to 85%. The total coal washing in the Q3 rose 13% to 0.80 mln. tonnes of which 69% relates to the washing plant "Kaskad-2". The volume of coal sorting decreased by 7% compared to the Q2 and amounted to 1.33 mln. tonnes.
The volume of stripping remained at the level of Q2 and reached 14.81 mln cubic meters, which is 7% higher than in Q3 2012. The volume of blasted rock mass was 7.50 mln. cubic meters, an increase for the quarter by 13%. The share of blasted rock in the stripping was at the level of 55%. Average distance of stripping transportation in the last quarter rose by 15% to 3.00 km. The average stripping ratio in Q3 remained at the level of Q2 and amounted 5.90. According to the production plan, the stripping ratio in Q3 was down to 5.85, but it was an over-fulfillment of the plan due to utilization of high-performance mining equipment. Year-on- year, the stripping ratio decreased by 4%.
Key commercial results for the Q3 2013
|
|
Q3 2013
|
% of
total |
Q2 2013
|
Ch.
|
Q3 2012
|
Ch. 9
|
|
Sales volume 10, |
2.98
|
|
2.16
|
38%
|
2.42
|
23%
|
|
Export sales volume
|
1.96
|
66%
|
1.74
|
13%
|
1.36
|
44%
|
|
Domestic sales volume
|
1.02
|
34%
|
0.42
|
143%
|
1.06
|
-4%
|
|
|
|
|
|
|
|
|
|
Own coal
|
2.38
|
80%
|
2.02
|
18%
|
2.10
|
13%
|
|
Coal resale
|
0.59
|
20%
|
0.14
|
321%
|
0.32
|
84%
|
|
Average selling price, |
1,146
|
|
1,025
|
12%
|
1,276
|
-10%
|
|
Average export price |
1,030
|
|
980
|
5%
|
1,288
|
-20%
|
|
Average domestic price |
1,368
|
|
1,207
|
13%
|
1,259
|
9%
|
In Q3 sales increased by 38% versus the volume of Q2, reaching 2.98 mln. tonnes of coal due to seasonal consumption of thermal coal in Russia. Year-on-year, this figure shows an increase of 23%. In Q3 export sales rose 13% to 1.96 mln. tonnes, due to the additional volume of clean coal produced at the washing plant "Kaskad-2". For the quarter, the share of exports in total sales of coal fell from 81% to 66% due to a seasonal increase of sales in the domestic market. Coal sales in the domestic market increased by 143% due to increased demand from retail customers in anticipation of the heating season and reached 1.02 mln. tonnes. The volume of coal purchased for resale increased by 20% to 0.59 mln. tonnes.
In Q3 2013, the average selling price of coal has increased by 12% compared to Q2 figure, amounting to RUB 1,146 per tonne. Compared to Q3 2012, the average price decreased by 10%. The average selling price in the domestic market increased by 13% on the back of seasonal growth of demand and reached RUB 1,368 per tonne. Compared to Q3 2012, the average selling price in the domestic market increased by 9%. The average selling price of coal for export increased by 5% reaching RUB 1,030 per tonne. Year-on-year, the average price of export sales decreased by 20%.
Key production results for the 9M 2013
|
|
9M 2013
|
% of total
|
9M 2012
|
Ch.
|
|
Coal production, mln. tonnes, incl.: |
7.39
|
|
6.33
|
17%
|
|
Karakansky South
|
2.34
|
32%
|
2.25
|
4%
|
|
Vinogradovsky
|
2.48
|
34%
|
1.20
|
107%
|
|
Cheremshansky12
|
2.57
|
35%
|
2.90
|
-11%
|
|
Coal processing13, |
6.05
|
82%14
|
4.99
|
21%
|
|
Sorted coal
|
4.17
|
69%
|
4.37
|
-5%
|
|
Washed coal
|
1.88
|
31%
|
0.62
|
203%
|
|
"Kaskad-1" washing plant
|
0.76
|
40%
|
0.62
|
23%
|
|
"Kaskad-2" washing plant
|
1.12
|
60%
|
-
|
|
|
Stripping, mln. cbm., incl.: |
44.29
|
|
52.52
|
-16%
|
|
Blasted rock mass15, mln. cbm
|
20.50
|
46%16 |
25.98
|
-21%
|
|
Average stripping transportation distance, km
|
2.70
|
3.05
|
-5%
|
|
|
Average stripping ratio17 |
6.00
|
|
8.30
|
-28%
|
During the 9 months of 2013 the Company produced a 7.39 mln. tonnes of coal, which is 17% higher than in the same period of 2012. Most of the growth came on the open-pit mine "Vinogradovsky", which was produced 2.48 mln. tonnes of coal, which is 203% higher than last year. At the same time by 11% to a level of 2.57 mln. tonnes of production was down on the open-pit mine "Cheremshansky". These changes are implemented in order to reduce the average cost of production because cut "Cheremshansky"' production costs are higher.
The volume of coal processing totaled 6.05 mln. tonnes, up 21 % compared to the 9 months of 2012. The share of processed coal in the company's commercial products was 82%. After the introduction of the second washing plant "Kaskad-2", the total coal washing increased by 203% to 1.88 mln. tonnes. The volume of coal sorting decreased by 5% compared to last year and amounted to 4.17 mln. tonnes. The volume of blasted rock mass was 20.50 mln. cubic meters, and decreased by 21%. The average distance of stripping transportation over the past 9 months decreased by 5% to 2.70 km. The average stripping ratio for the 9 months of 2013 decreased by 28% to 6.00.
Key commercial results for the 9M 2013
|
|
9M 2013
|
% of total
|
9M 2012
|
Ch.
|
|
Sales volume 18, |
7.52
|
|
7.27
|
3%
|
|
Export sales volume
|
5.10
|
68%
|
4.42
|
15%
|
|
Domestic sales volume
|
2.42
|
32%
|
2.85
|
-15%
|
|
|
|
|
|
|
|
Own coal
|
6.53
|
87%
|
6.07
|
8%
|
|
Coal resale
|
0.99
|
13%
|
1.20
|
-18%
|
|
Average selling price, RUB/tonne19 |
1,074
|
|
1,304
|
-18%
|
|
Average export price |
977
|
|
1,334
|
-27%
|
|
Average domestic price |
1,276
|
|
1,257
|
2%
|
Coal sales for the 9 months of 2013 increased by 3 % compared to the same period in 2012 and amounted to 7.52 mln. tonnes. Exports increased by 15 % to 5.10 mln. tonnes, which corresponds to 68% of total sales. Domestic sales decreased by 15% to 2.42 mln. tonnes against the increased competition in the segment supplies for energy generating industry. The volume of coal purchased for resale decreased by 18% to 0.99 mln. tonnes due to the reorientation of the Company to sell the maximum amount of coal produced.
During the 9 months of 2013 the average price of coal sales amounted to RUB 1 074 per tonne, a decrease of 18% compared to the same period last year. The main driver of price reduction was export to markets of the Asia-Pacific region. The average price of export sales decreased by 27% to RUB 977 per tonne. The average price in the domestic market increased by 2% to a level of RUB 1,276 per tonne.
On November 22, 2013 the Company plans to release its unaudited interim IFRS Statements for the 9 months 2013. A conference-call to discuss the financial results and to ask the questions will be held the same. The details of the conference-call will be published separately.
On 26 and 27 November 2013 the Company invites existing and potential investors to meet in London to discuss the financial results of the updated strategy. For participation in a meeting with investors please send your request to: vkr@oaoktk.ru.
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 The share of processed coal in the commercial products
5 Included in stripping
6 The share of blasted rock mass in the total stripping
7 The revised figure. Previously published data for the Q2 2013 did not include the stripping handling for the washing plants
8 Share of coal produced in stripping
9 Change, Q2 2013/Q2 2012
10 Sales for the group of companies, including third parties coal resale
11 Excluding rail tariffs and VAT
12 Including “Kaskad-1” washing plant
13 Coal washing and sorting
14 The share of processed coal in the commercial products
15 Included in stripping
16 The share of blasted rock mass in the total stripping
17 Share of coal produced in stripping
18 Sales for the group of companies, including third parties coal resale
19 Excluding rail tariffs and VAT
20 Metal Expert, January 2013
