Avdiivka Coke 1Q12 loss is larger than in FY2011
10 July 2012
Avdiivka Coke (AVDK UK) reported a net loss of USD 41 mln in 1Q12, compared to net income of 16 mln in 1Q11 and a net loss of USD 32 mln in FY2011. Revenue for the quarter slid 13% yoy to USD 298 mln, and EBITDA was negative USD 40 mln (vs. positive USD 34 mln in 1Q11).
Roman Topolyuk: Avdiivka’s net loss stemmed from its operational results, as the company posted a gross loss of USD 43 mln in 1Q12. The latter was caused by expensive imported coal, which the plant is purchasing from, the related US-based United Coal Company (both owned by Metinvest). The disappointing 1Q12 financials, combined with strong continuing focus of Metinvest on imported coal, makes the management’s projections for Avdiivka’s net income of USD 17 mln in 2012 unlikely.
