December 03, 2008

Czech coal miner OKD profit in 2006 dip by 56% YoY

The largest Czech black coal mining company OKD announced that it netted CZK 3.571 billion in 2006, nearly CZK 2 billion less than the 2005 and will pay CZK 1.9 billion in dividends to shareholders. Its overall revenues dropped by CZK 3.9 billion to CZK 39 billion, while costs increased by CZK 268 million to CZK 35.5 billion. Investments topped CZK 2 billion and after tax profit was CZK 4.752 billion. The results are by Czech accounting standards.

OKD said the decrease in profit was caused by a fall in coal and coke prices. Mr Marek Jelinek CFO of New World Resources, the owner of OKD, said that the price of coke fell by 10% and the price of coal by 7% to 8%in 2006. OKD management said that the data are not comparable year on year because of the OKD's restructuring.

OKD mined over 13 million tonnes of coal in 2006, 252,000 tonnes more YoY and sold 13.5 million tonnes of coal up by 736,000 tonnes YoY and 1.3 million tonnes of coke up by 160,000 tonnes YoY.

OKD's owners said recently that they wanted mining to resume at several closed Polish black coalmines. The mines considered for reopening are Dembiensko at Rybnik and Morcinek at Kaczyce, in Silesia, across the Czech Polish border. Deposits at Morcinek are estimated at 250 million tonnes.

OKD is 100% owned by Karbon Invest, which was acquired by the Cyprus based investment group RPG Industries at the end of 2004. Several investors including Czech financier Mr Zdenek Bakala in turn control RPG.