Raspadskaya Coal Company (Raspadskaya), the second largest coking coal producer in Russia and a subsidiary of domestic steelmaker Evraz Group, has announced that in 2009 it registered a 78 percent decrease in its net profit to $117 million, due to negative market conditions in the first half of the year.
"In spite of negative market conditions in H1 2009 and the low coal concentrate price level during three quarters of 2009 we managed to support our profitability," Raspadskaya CEO Gennady Kozovoy said.
Raspadskaya's 2009 revenue went down by 59 percent to $497 million, while its EBITDA saw a decrease of 71 percent to $255 million, both compared to 2008. In 2009, the company's capital expenditure amounted to $165 million, and included auction purchases of new mining licenses with coal reserves and resources of around 400 million mt. Net debt decreased from $165 million as of December 31, 2008 to $122 million as of December 31, 2009.
In 2009, Raspadskaya produced 10.6 million mt of raw coal, while its sales of coal concentrate amounted to 7.7 million mt. The production cash cost per mt of coal concentrate in 2009 declined by 40 percent year on year, amounting to $18.4/mt
"In future we will continue to focus on strengthening our status as a reliable supplier of coal products for metallurgical and coke-chemical industries, as well as to further diversify our client base and sales markets," Mr. Kozovoy said.