On February 14 2013, OJSC Kuzbasskaya Toplivnaya Company (MICEX: KBTK), one of the largest producers and exporters of thermal coal in Russia, is pleased to announce operational results for the 4 quarter and full year 2013.
Key production results for the Q4 2013
| |
Q4.
2013
| % of total |
Q 3.
2013
| Ch. | Q4 2012 | Ch. 1 |
| Coal production2, | 2,76 | | 2,50 | 10% | 2,39 | 15% |
| Karakansky South open-pit mine | 0,90 | 33% | 0,80 | 13% | 0,84 | 7% |
| Vinogradovsky open-pit mine | 0,93 | 34% | 0,89 | 4% | 0,66 | 41% |
| Cheremshansky open-pit mine | 0,92 | 33% | 0,80 | 15% | 0,88 | 5% |
| Commercial products3, | 2,41 | | 2,50 | -4% | 2,39 | 1% |
| Coal processing4, | 2,19 | 91%5 | 2,13 | 3% | 1,58 | 39% |
| Sorted coal | 1,39 | 58% | 1,33 | 5% | 1,38 | 1% |
| Washed coal | 0,80 | 33% | 0,80 | - | 0,20 | 300% |
| Washing plant Kaskad 1 | 0,24 | 30% | 0,25 | -4% | 0,20 | 20% |
| Washing plant Kaskad 2 | 0,56 | 70% | 0,55 | 2% | - | - |
| Stripping, | 15,11 | | 14,81 | 2% | 13,75 | 10% |
| Blasted rock mass ,mln cbm6, млн. куб. м | 8,41 | 56% | 7,50 | 12% | 5,87 | 43% |
| Average stripping ratio7 | 5,50 | | 5,90 | -7% | 5,80 | -5% |
| Average stripping transportation distance, km | 2,80 | | 3,00 | -7% | 2,80 | - |
In Q4 2013 the Company has produced 2.76 mln tonnes of coal, which is 4% higher than the previously published production plan. Compared with the level of Q4 2012 coal production increased by 15%. The volume of commercial products reduced by 4% to 2.41 mln tones. Compared with the level of same period 2012, the volume of the company's commercial products increased by 1%.
Coal processing increased by 3% compared with the level of Q3 2013 and totaled 2.19 mln tonnes, which is 39% higher than in Q4 2012. Such increase year-on-year due to introduction of the washing plant Kaskad 2. The share of processed coal in the commercial products amounted to 91%. The total coal washing in the Q4 remained at the level of Q3 and amounted to 0.80 mln tonnes of which 70% relates to the washing plant Kaskad 2. The volume of coal sorting increased by 5% compared to the Q3 and amounted to 1.39 mln tonnes.
The volume of stripping increased by 2% compared with Q3 and reached 15.11 mln cbm, which is 10% higher than in Q4 2012. The volume of blasted rock mass was 8.41 mln cbm, an increase for the quarter by 12%. The share of blasted rock in the stripping was 56%. Average stripping transportation distance in the Q4 decreased by 7% to 2.80 km. The average stripping ratio in Q4 continued to decline, decreasing by 7% and reached 5.50, which is the lowest quarterly figure in the history of the Company. Reduction of stripping ratio in Q4 was 3% stronger than expectations of management.
Key commercial results for Q4 2013а
| |
Q 4.
2013
| % of total |
Q 3.
2013
| Ch. | Q4 2012 | Ch. 8 |
| Sales volume 9, | 3,09 | | 2,98 | 4% | 2,93 | 5% |
| Export sales volume | 1,84 | 60% | 1,96 | -6% | 1,49 | 23% |
| Domestic sales volume | 1,25 | 40% | 1,02 | 23% | 1,44 | -13% |
| | | | | | | |
| Own coal | 2,29 | 74% | 2,38 | -4% | 2,44 | -6% |
| Coal resale | 0,79 | 26% | 0,59 | 34% | 0,50 | 58% |
| Average selling price, RUB/tonne 10 |
1 168 | | 1 146 | 2% | 1 269 | -8% |
In Q4 sales increased by 4% versus the volume of Q3, reaching 3.09 mln tonnes of coal. Year-on-year, this figure shows an increase of 5%. In Q4 export sales decreased by 6% to 1.84 mln tonnes. For the quarter, the share of export in total sales fell from 66% to 60% due to a seasonal increase of sales in the domestic market. Coal sales in the domestic market increased by 23% due to increased demand from retail customers and reached 1.25 mln. tonnes. The volume of coal purchased for resale increased by 34% to 0.79 mln tonnes.
In Q4 2013, the average selling price of coal has increased by 2% compared to Q3 figure, amounting to RUB 1,168 per tonne. Compared to Q4 2012, the average price decreased by 8%. More information about average selling prices available to investors and analysts on request.
Key production results for the 2013
| |
2013
| % of total |
2012
| Ch. |
| Coal production, | 10,15 | | 8,71 | 17% |
| Karakansky South open-pit mine | 3,22 | 32% | 3,08 | 5% |
| Vinogradovsky open-pit mine | 3,41 | 34% | 1,87 | 82% |
| Cheremshansky open-pit mine | 3,51 | 35% | 3,76 | -7% |
| Commercial products12, | 8,96 | | 8,71 | 3% |
| Coal processing13, | 8,24 | 92%14 | 6,56 | 26% |
| Sorted coal | 5,56 | 62% | 5,75 | -3% |
| Washed coal | 2,68 | 30% | 0,81 | 231% |
| Kaskad 1 washing plant | 1,01 | 38% | 0,81 | 25% |
| Kaskad 2 washing plant | 1,67 | 62% | - | - |
| Stripping, | 59,40 | | 66,27 | < -10% |
| Blasted rock mass 15, mln cbm | 28,92 | 49% | 31,85 | -9% |
| Average stripping ratio 16 | 5,90 | | 7,60 | -22% |
| Average stripping transportation distance, km | 2,70 | | 3,00 | -10% |
During the 2013 the Company produced a 10.15 mln tonnes of coal, which is 17% higher than in the 2012 and 3% below the production plan. Most of the growth came on the Vinogradovsky open-pit mine, which was produced 3.41 mln tonnes of coal, which is 82% higher than last year. At the same time production was down by 7% to a level of 3.51 mln tonnes on the Cheremshansky open-pit mine. These changes are implemented in order to reduce the average cost of production because Cheremshansky open-pit mine production costs are higher.
The volume of the company's commercial products increased by 3% to 8.96 mln tonnes, which is 3% higher than expectation of management. The volume of coal processing totaled 8.24 mln tonnes, which is 26% higher than 2012. The share of processed coal in the company's commercial products totaled 92%. After the introduction of the second washing plant Kaskad 2, the total coal washing increased by 231% to 2.68 mln tonnes. The volume of coal sorting decreased by 3% compared to last year and amounted to 5.56 mln tonnes. The volume of blasted rock mass was 28.92 mln cbm, and decreased by 10%. The average stripping transportation distance over the 2013 decreased by 10% to 2.70 km. The average stripping ratio for the 2013 decreased by 22% to 5.90 and demonstrated the lowest average level for the year in Company's history.
Key commercial results for the 2013
| |
2013
| % of total |
2012
| Ch. |
| Sales volume 17, | 10,61 | | 10,20 | 4% |
| Export sales volume | 6,94 | 65% | 5,91 | 17% |
| Domestic sales volume | 3,67 | 35% | 4,29 | -14% |
| | | | | |
| Own coal | 8,82 | 83% | 8,51 | 4% |
| Coal resale | 1,78 | 17% | 1,70 | 5% |
| Average selling price, RUB/tonne 18 | 1 101 | | 1 294 | -15% |
Coal sales for the 2013 increased by 4% compared to the level of 2012 and amounted to 10.61 mln tonnes. Exports increased by 17% to 6.94 mln tonnes, which corresponds to 65% of total sales. Domestic sales decreased by 14% to 3.67 mln tonnes against the increased competition in the segment supplies for energy generating industry. The volume of coal purchased for resale increased by 17% to 1.78 mln tonnes due to increased seasonal needs of retail network. In 2013, the average selling price of coal amounted RUB 1,101 per tonne, a decrease of 15% compared to the last year. The main driver was the reduction of prices on markets of the Asia-Pacific region.
On February 20, 2014 the management of KTK invites existing and potential investors to meet in Vienna for discussing the operational and financial results and strategy updates. To arrange the meeting please send your request to: vkr@oaoktk.ru.
On April 4, 2014 the Company plans to release its audited IFRS financial statements for the 2013. A conference-call to discuss the financial results and to ask the questions will be held at the same day. The details of the conference-call will be published separately.
Conference call details and the presentation will be published separately in investor calendar on the Company’s website: www.oaoktk.ru/investors
Contacts for analysts and investors in Moscow:
Vasily Rumyantsev
Head of Moscow office, IRO
+7 (495) 787-68-05
vkr@oaoktk.ru
Contacts for press in Kemerovo:
Elena Sarycheva
Head of public affairs department
+7 (3842) 36-47-62
es@oaoktk.ru
Company at a glance:
OJSC Kuzbasskaya Toplivnaya Company is one of the largest manufacturers 19 and exporters of thermal coal in Russia. Production assets of the Company include three current and one projected opent-pit mines in Kemerovo region, two washing plants and own railroad infrostructure located in the same industrial cluster. The Company operates a retail network in 4 regions of Siberia, supplying over 400 thousands households and over thousand of public and commercial boilers. The company employs over 4,000 people. Shares of KTK are traded on 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
Financial highlights under IFRS:
| RUB mln.
|
2012
| 2011 |
2010
|
| 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 |
Additional information about the Company and investor calendar: www.oaoktk.ru/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.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, Q4 2013/Q4 2012
2 Including washing plant Kaskad 1
3 Volume of salable output after sorting and washing of produced coal
4 Coal washing and sorting
5 The share of processed coal in the commercial products
6 Included in stripping
7 Share of coal produced in stripping
8 Change, Q4 2013/Q4 2012
9 Sales for the group of companies, including third parties coal resale
10 Excluding rail tariffs and VAT
11 Including washing plant Kaskad 1
12 Volume of salable output after sorting and washing of produced coal
13 Coal washing and sorting
14 The share of processed coal in the commercial products
15 Included in stripping
16 Share of coal produced in stripping
17 Sales for the group of companies, including third parties coal resale
18 Excluding rail tariffs and VAT
19 Metal Expert, January 2013
