Kuzbasskaya Toplivnaya Company Announces 2Q Results
OREANDA-NEWS. 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.
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.
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.
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.
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.
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