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.

Related Articles

Czech CSSD proposes 2014 general and European elections to be held together.

Social Democrats (CDDS), the major Czech opposition party, proposed next year's general and European elections to be held on the same day, CTK news agency reported. CSSD leader Bohuslav Sobotka ... more

Tesco Czech faces fine for selling products containing undeclared horsemeat

The Czech unit of UK retailer Tesco faces a fine of up to CZK 3mn (EUR 116,000) for selling beef lasagne containing undeclared horsemeat, Radio Prague reported. The state-run Agricultural and Food ... more

Czech Senate votes to limit immunity of lawmakers, judges.

The upper house of the Czech parliament, the Senate, voted on March 20 a constitutional amendment to limit the immunity of lawmakers and constitutional judges, Radio Prague reported. Out of the ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss