Mechel announce mining segment results for Q1 2010
Q1'10 Q1'09 Change
Revenues 461,204 344,236 34.00%
Intersegment sales 119,607 51,750 131.10%
Operating income 83,293 50,008 66.60%
Net income 79,750 -65,796 221.20%
EBITDA 147,347 91,490 61.10%
(In USD thousand)
Mining segment revenue from external customers for the first quarter of 2010 totaled USD 461.2 million or 24.3% of consolidated net revenue an increase of 34.0% over net segment revenue from external customers of USD 344.2 million or 29.2% of consolidated net revenue in the first quarter of 2009.
Operating income in the mining segment in the first quarter of 2010 increased by 66.6% to USD 83.3 million or 14.3% of total segment revenue, compared to operating income of USD 50.0 million, or 12.6% of total segment revenue for the first quarter of 2009. EBITDA in the mining segment in the first quarter of 2010 went up by 61.1% and amounted to USD 147.3 million compared to segment EBITDA of USD 91.5 million in the first quarter of 2009. The EBITDA margin for the mining segment in the first quarter of 2010 was 25.4% compared to 23.1% in the first quarter of 2009. Depreciation, depletion and amortization in mining segment amounted to USD 67.5 million that is 77.2% higher than USD 38.1 million in the first quarter of 2009.
Mr Boris Nikishichev CEO of Mechel Mining Management Company commented of the mining segment operating results “It is important to note that Mechel mining segment in the first quarter of 2010 continued very intensive work on accelerated increase of coal production that allowed us already in the second quarter of 2010 to achieve the pre-crisis production volumes and even to exceed them at Yakutugol. Our US based coal mining company Mechel Bluestone significantly surpassed its best historical results of coking coal production as well. Active production volumes increase demanded for significant additional investments in the first quarter in stripping works, equipment repair, procurement of spares for mining equipment, that caused similar 3 temporary cash costs increase as in the Q4 2010. With reaching planned mining volumes in the 2Q 2010 cash costs began normalizing.
We continued work on our strategic investment projects Elga Coal Deposit development and construction of its railway link. Complications with financing of the project in the heat of the global crisis in the beginning of 2009 forced us to apply and get changes in the terms of the license on Elga Coal Deposit development, extending the completion of railway construction by the end of 2011. At the same time our constructors were able to rapidly start works directly on the deposit itself, and that will allow us already in the Q4 2010 to start mining the first coal of deficit coking grades there."
Sunday, July 18, 2010
Mechel update mining segment Results for Q2 2010
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