Raspadskaya may not pay dividends after profits drop by almost 50%

The board of directors of Russia’s largest coking coal producer, Raspadskaya, recommended not paying dividends for 2023. Net profit of Raspadskaya according to IFRS decreased by 43.7%, amounting to $440 million. About this it says in a company message.

After the announcement, Raspadskaya shares on the Moscow Exchange fell by more than 3%. As of 10:16 Moscow time, the company’s shares decreased by 3.2%, to 364.45 rubles.

Raspadskaya’s revenue fell by 22.5%, to $2.198 billion. Gross profit – by 22.5%, to $1.224 billion, operating profit – by 48.1%, to $519 million. Profit margin fell to 20% compared from 28% a year earlier. EBITDA decreased by 47%, to $689 million ($1.295 billion in 2022).

The cash cost of a ton of coal concentrate fell to $60 from $66 in 2022 due to the depreciation of the ruble. “In 2023, problems with the production of raw coal at some of our enterprises, as well as significantly decreased product sales prices, negatively affected the financial result,” the company concluded.

Last year there was a loss received Russian coal mining company Russian Coal, ranked seventh in the Forbes ranking of unprofitable companies with a loss of 34.2 billion rubles. By data The Ministry of Energy and Russian coal companies increased their revenue by almost a third in 2022 due to rising world prices. However, their profits only increased by 9%.

Anastasia Larina