Interfax reported that OJSC Kuzbass Fuel Company posted RUB 391 million in net losses according to international financial reporting standards for April to June 2012.
The company posted RUB 200 million in net profit for the second quarter of 2011.
It was earlier reported that analysts offered varying estimates on the company possible profit results for the second quarter of this year. According to a consensus forecast compiled by Interfax, KTK was to post 434 million rubles in net profit. At the same time, experts at Alfa-Bank, Sovlink and Metropol forecast net losses, averaging out at 359.7 million rubles.
The company net profit for January to June 2012 decreased by 36%YoY to RUB 505 million. KTK's Q2 sales revenues were down 27%YoY at RUB 4.853 billion a little better than the analysts' forecast.
The change in the company financials is attributable to a seasonal decrease in domestic sales volume. However, the company's sales revenues for the first half as a whole were up 13%YoY at RUB 11.505 billion.
In association with the temporary slump in sales revenues along with rising sales costs against a backdrop of a higher overburden ratio, EBITDA for H1 contracted 7% to RUB 1.375 billion. Q2 EBITDA amounted to 259 million rubles.
Mr Eduard Alekseyenko KTK's First Deputy General Director said "The company already demonstrated losses in the amount of 275 million rubles in the second quarter of 2010, during the time of the company's IPO, but the current situation has substantial differences. In 2012, the losses were associated with exchange rate variance on debts denominated in foreign currency. With the price of coal falling 30% on international markets and a higher overburden ratio, KTK was able to get 'to zero' in its operational outcome."
KTK chief Igor Prokudin noted that the Q2 results were expected. He said "Summer is for coal companies usually a period of declining profits. It was like that last year and this year is no exception. Also, the situation on the markets which began to change in the first quarter of this year had an effect on the results of the second quarter."
Source - Interfax
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