Avdiivka Coke keeps EBITDA flat in 3Q13 qoq
23 October 2013
Avdiivka Coke (AVDKUK) reported a 17% yoy decrease in revenue to USD 695 mln in 9M13. EBITDA was USD 35 mln versus USD -97 mln a year before, while its bottom line was positive at USD 2.1 mln compared to its net loss of USD 112.6 mln in 9M12. In 3Q13, revenue grew 4.4% qoq to USD 234 mln and EBITDA remained flat at USD 9.4 mln, though its quarterly net loss deepened to USD 1.5 mln in 3Q13 from USD 0.6 mln in 2Q13.
Roman Topolyuk: The positive effect from Avdiivka’s coke production increase of 6.9% qoq (to 1.0 mmt) in 3Q13 was counterbalanced by a USD 1.0 mln increase in net other expenses, thus keeping EBITDA flat qoq. The outlook for 4Q13 is weak so far as demand on the domestic market – the main market for Avdiivka Coke – will deteriorate. Industry association Metallurgprom is forecasting a 4.8% m/m decrease in pig iron production to 2.36 mmt in November (-2.8% yoy).
