Coal Energy ups coal sales 13% yoy in July-September 2012

Coal Energy (CLE PW) increased thermal coal sales 13.8% yoy in 1QFY13 to 375 kt, excluding  middlings, and boosted sales of coking coal 8.3% yoy to 65 kt, the company announced in a Nov. 16 trading update. Thus, total coal sales grew 13.0% yoy to 440 kt. The update came out in advance of CLE’s 1QFY13 earnings report, which the company plans to release on Nov. 23.

Roman Topolyuk: The figures imply the company sold 82% of its thermal coal and almost all its coking coal produced in 1QFY13. Such a performance underlines Coal Energy’s solid market position despite the turbulent global economic environment. However, we estimate Coal Energy will post EBITDA of USD 15 mln in 1QFY13, which is a 23% decline qoq and a 6% decrease yoy.  This is driven by an estimated 10% qoq decrease in coking coal prices, as well as a high comparison base with 4QFY12, when the company sold excessive inventories.