Avdiivka Coke posts net loss of USD 81 mln in 1H12

Avdiivka Coke (AVDK UK) reported revenue of USD 581 mln in 1H12 (-21% yoy) and a net loss of USD 81 mln (vs. net profit of USD 16 mln a year ago), according to Interfax. The result implies that the company endured net losses of USD 40 mln in 2Q12, which is slightly less than in the previous quarter. 

Roman Topolyuk: Despite management’s previous projections that Avdiivka Coke would finish 2012 with a positive bottom line, it continues to report losses. No reversal in profitability is visible in coming reporting periods, stemming from its business model – a large part of coking coal purchases are of expensive coal from another Metinvest subsidiary – United Coal Company (US).