Sadovaya Group publishes its 2015 annual report

Sadovaya Group (SGR PW), the coal mining and trading company with assets located in the occupied districts of Donbas, released on July 6 its annual report with non-audited accounts for 2015. The company reported its mines were idle in 2014 and 2015, while it managed to more than double yoy its waste processing activity and produce 57.1 kt of coal from waste dumps. Its revenue decreased 59% yoy to USD 1.04 mln; its gross, operating and net profits remained negative. Its net loss amounted to USD 38.8 mln in 2015, which was mostly the result of foreign currency translation losses of USD 32.5 mln. The company’s cash flow from operations was negative at USD -0.02 mln in 2015, rising from USD -0.23 mln a year before.

Its total debt amounted to USD 41.2 mln as of end-2015 (almost unchanged yoy) and its cash balance was zero. The company reported it was not paying any interest on its debts in 2015. Sadovaya “is trying to find mutual understanding with all its creditors,” it reported.

Alexander Paraschiy: In this report, we found no good news or any signs that allow us to expect improvement of Sadovaya’s operations. The only consequence of the report’s publishing is a renewal of trading of Sadovaya’s shares on the Warsaw Stock Exchange, which happened on July 7.