Coal Energy keeps coal output flat mom, up 36% yoy in August

Coal Energy (CLE PW) produced 199.8 kt of coal in August, which was almost flat mom. Output in 2M FY12, meanwhile, was up 36% yoy to 399.6 kt. All the company’s business segments, thermal and coking coal mining and coal production from waste recovery, recorded stable performance mom.

Roman Topolyuk: Relying on its own coal sources, Coal Energy has a clear advantage in the current market over peer Sadovaya Group (SGR PW), whose output has suffered because of a decline in the preparation of third-party coal. Despite the stable production at Coal Energy, there is still a risk of increasing stockpiles of finished goods at the company’s production sites (namely, coking coal, local demand for which is apparently weak). We look forward to see coal sales volumes in the company’s next updates.