Coal Energy EBITDA plunges 13.5x yoy in 1QFY14

26 ноября 2013 года
Конкорд Капитал

Coal Energy (CLE)

Coal Energy (CLE PW) reported a 26% yoy decline in net revenue to USD 29.0 mln in 1QFY14 (July-September) on a 9% yoy decline in coal deliveries, according to its November 25 release. Its coal production decreased 3x yoy to just 196 kt in the quarter, as the company chose to actively dispose excess inventory. Finished goods as part of inventories plummeted 40% qoq to USD 9.1 mln. A decline in inventories (-USD 4.0 mln) was more than offset by growth in receivables (USD 9.2 mln), which resulted in negative operating cash flow in the quarter (-USD 6.9 mln).

The company’s EBITDA plunged to USD 1.0 mln in 1QFY14 from USD 13.5 mln a year before. The smaller EBITDA and a 60% yoy increase in financial costs (to USD 3.3 mln) led to a 1Q net loss of USD 5.6 mln.

At the same time, Coal Energy improved its financials on qoq basis: coal sales grew 34% qoq to 402 kt, while revenue increased 33% qoq, even though average coal selling price was 1% lower qoq. Coal Energy’s CapEx was halved in 1QFY14 to USD 6.6 mln. EBIDTA and bottom line improved significantly qoq from losses of USD 2.1 mln and minus USD 22 mln respectively in 4QFY13.

Roman Topolyuk: Having cut CapEx twice qoq, the company was able to decrease by 9% qoq its negative free cash flow (operating cash flow less CapEx) to USD 13.5 mln. If Coal Energy isn’t successful with a working capital release by decreasing its receivables (which could be a significant source of internal financing), we are going to see a further escalation of the company’s leverage. Its D/E ratio grew to 1.07x in 1QFY14 from 0.86x.

Источник: Конкорд Капитал

Аналитик: Роман Тополюк


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