Bloomberg News

Raspadskaya First-Half Profit Plummets as Fire Cuts Capacity

September 29, 2011

(Updates with analyst’s comment in third paragraph.)

Sept. 29 (Bloomberg) -- OAO Raspadskaya, a Russian coal producer, said first-half profit fell 57 percent from a year earlier after a fire at its flagship mine cut capacity.

Net income fell to $99 million from $229 million on revenue of $377 million, down 19 percent from the same period a year earlier. Earnings before interest, taxes, depreciation and amortization declined 31 percent to $180 million.

Capacity hasn’t recovered since a series of explosions and fires at a mine in Siberia last year that killed 90 people, George Buzhenitsa, a Deutsche Bank AG analyst, said today by phone. The shares dropped as much as 5.4 percent in Moscow, extending their decline this year to 55 percent.

Raspadskaya spent 1.2 billion rubles ($38 million) in the first half, of a total budget of 8.6 billion rubles, rebuilding the mine and plans to start production from the second face in the near future, the company said.

--Editors: Alex Devine, Amanda Jordan

To contact the reporter on this story: Yuliya Fedorinova in Moscow at yfedorinova@bloomberg.net

To contact the editor responsible for this story: Torrey Clark at tclark8@bloomberg.net


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