Raspadskaya Coal Company (Raspadskaya), one of the largest coking coal producers in Russia, has announced that in 2010 its net profit went up by 109 percent year on year to $244 million, as its consolidated EBITDA increased by 33 percent year on year to $338 million, on the back of a 42 percent year-on-year growth in revenue to $706 million.
Accordingly, to offset the 31 percent decrease in its coal concentrate sales volume as a result of the accident in May last year at the Raspadskaya Mine, in 2010 Raspadskaya increased its coking coal concentrate sales price both in the domestic and international markets.
In particular, Raspadskaya's weighted average price of coking coal concentrate on FCA Mezhdurechensk basis surged by 90 percent year on year, from a fairly low level of $59.6/mt in 2009, to $113.2/mt in 2010.
In 2010, Raspadskaya recognized a loss on disposal of property, plant and equipment in the amount of $44.1 million, of which $39.4 million was related to the damage caused by the accident at the Raspadskaya Mine.
According to preliminary estimations, the total cost of the Raspadskaya Mine reconstruction will amount to approximately $280 million. In 2010, these costs totaled $99.8 million.
As SteelOrbis previously reported, in 2011 Raspadskaya intends to increase its coking coal output to 8.5 million mt from 7.2 million mt in 2010, as operations at the mine have resumed.