Czech coal miner NWR says 9mo profit more than halves on falling coal prices.

By bne IntelliNews November 15, 2012
Coal miner New World Resources (NWR) said net profit in the first nine months of 2012 dropped 61% y/y to EUR 47mn as weak demand from steelmakers lowered prices and cut into the company's revenue, NWR said in a statement on its website. In the third quarter alone, the company's net profit plunged 62% y/y to EUR 12.8mn and yet it beat market expectations for a EUR 3.4mn loss, according to a Reuters poll thanks to cost cutting. "Trading conditions remained challenging in the third quarter. In an environment where coking coal prices are 30 per cent down year-on-year, our focus will remain on cost containment and watchful management of capital spending in order to ensure we are well positioned for the future," NWR CFO Marek Jelinek said in the statement. The miner's revenue in Jan-Sep 2012 was 18% lower on the year at EUR 1.013bn mainly due to lower coking coal prices. Lower costs and an increase in inventories partially offset the impact of lower coal and coke prices on the company's EBITDA that decreased by 39% y/y to EUR 227mn in Jan-Sep. Total coal production stayed flat on the year at 8.6mn tonnes in January to June, while coke production increased by 10% to 525,000 tonnes. NWR kept its full-year coal production at 11mn-11.1mn tonnes and said full-year external sales will reach 10.2mn-10.3mn tonnes. Full-year outlook for coke production and sales was kept unchanged at 700,000 tonnes and 600,000 tonnes, respectively. NWR, controlled by Czech billionaire Zdenek Bakala, completed its re-incorporation from a Dutch to a UK company in May 2011 in order to qualify for listing on the FTSE index of the London Stock Exchange. NWR fully controls local black-coal mining unit OKD, which operates 5 mines in northern Moravia.

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