Raspadskaya Profit Beats Estimates, Mine May Restart
OAO Raspadskaya, a Russian producer of steelmaking coal, said first-half profit jumped after higher prices boosted revenue.
Net income climbed to $228 million from $360,000 a year earlier, the company said today in an e-mailed statement. That beat the $155 million median estimate of seven analysts surveyed by Bloomberg.
The average sale price for Raspadskaya’s washed coal rose 53 percent in the first half from the previous six months to 3,238 rubles ($105) a metric ton, the company said July 14. Revenue tripled from a year earlier to $466 million, according to today’s statement.
In May, the company’s largest mine, in Siberia’s Kemerovo province, was ripped apart by explosions that left 90 people dead. Raspadskaya will need to spend $280 million to rebuild the site, the company said today. That compares with a June estimate of about $322 million from Prime Minister Vladimir Putin, according to the Interfax news service.
Raspadskaya has submitted a plan to restart part of the 9 million-ton-a-year mine in the fourth quarter and is awaiting state approval, it said. The company was forced to halt coal shipments to Asia after the blasts to meet domestic demand.
To contact the reporter on this story: Ilya Khrennikov in Moscow at firstname.lastname@example.org
To contact the editor responsible for this story: Amanda Jordan at email@example.com