Coal Energy coal production drops 3% m/m in August

Coal Energy (CLE PW) reported total coal production of 64.4 kt in August (-3.3% m/m, -64.7% yoy), including 53 kt from coal mining (-0.7% m/m, -66.5% yoy).

Roman Topolyuk: Coal Energy’s operating performance continued its downward trend in August, on the back of both domestic and export coal markets that are continuously deteriorating. At the start of September, coal stockpiles at thermal power plants remained at their August level of 4.6 mmt, growing 13% yoy, while coal consumption by thermal power plants fell 7% yoy in 7M13. We expect to see a start in the recovery of market demand and Coal Energy’s coal output not earlier than 4Q13.