JSC SUEK (“SUEK” or “the Company”) has published its IFRS financial results for the six months ending 30 June 2019, reviewed by KPMG.
Key financial and operational figures[1]:
|
|
1H2019 |
1H2018 |
|
Revenue, $ million |
3,960 |
4,295 |
|
Net profit, $ million |
551 |
654 |
|
Operating cash flow, $ million |
1,172 |
1,124 |
|
Capital expenditure (CAPEX), $ million[2] |
705 |
314 |
|
Coal production, million tonnes |
51.0 |
55.6 |
|
Coal sales, million tonnes[3] |
59.1 |
59.0 |
|
- international coal sales |
27.8 |
27.7 |
|
- domestic coal sales |
31.3 |
31.3 |
|
incl. intragroup coal sales |
18.1 |
16.6 |
|
Power capacity sales, GW |
9.2 |
9.2 |
|
Electricity output, billion KWh |
25.9 |
26.3 |
|
Heat output, million GCal |
24.2 |
25.7 |
Vladimir Rashevsky, SUEK Chief Executive Officer,
‘In the first half of 2019 coal indexes went down by over 35% impacted by cyclical factors. However, SUEK managed to demonstrate stable financial and operational results due to revenue diversification, efficient production and logistic assets and committed teamwork of our personnel. We successfully went through the winter and spring period, as our power plants worked without accidents during the elevated demand period. Strict control over the operating cash flow enables us to finance the realisation of our strategic projects as planned’.
The Group’s revenue for January–June 2019 totalled $3,960 million, an 8% decrease compared to the first six months of 2018. The net profit reached $551 million.
The combined SUEK’s operating activities generated $1,172 million of operating cash flow, an increase year-on-year due to effective working capital management.
The available funding allowed SUEK to progress with its capacity development programme, with CAPEX for the first six months of 2019 amounting to $705 million. In particular, SUEK bolstered its railcar fleet under management to 54,500 railcars.
The Group’s clear strategic view, solid operational and financial results and diversified revenue sources enabled SUEK to confirm its credit rating from Moody’s at Ba2 and from Expert RA at ruAA-.
[1] SUEK IFRS consolidated interim condensed financial statements for the six months ended 30 June 2019 are available at http://www.suek.com/investors/disclosure/.
[2] Cash outflow.
[3] Including own coal and coal purchased from third parties.