03/16/2023 | Press release | Distributed by Public on 03/16/2023 02:23
Raspadskaya PJSC announces IFRS results for 2022
Moscow, 16 March 2023 - PJSC Raspadskaya (MOEX: RASP; "Raspadskaya" or "the Company") today announces its consolidated IFRS results for 2022.
Financial performance |
2022 |
2021 |
Change |
Change, % |
US$ million |
||||
Revenue |
2,842 |
2,098 |
744 |
35 |
Cost of sales |
(1,102) |
(807) |
(295) |
37 |
Gross profit |
1,740 |
1,291 |
449 |
35 |
Selling and distribution expenses |
(542) |
(82) |
(460) |
n/a |
General and administrative expenses |
(106) |
(74) |
(32) |
43 |
Social expenses |
(7) |
(4) |
(3) |
75 |
Gain/(loss) on disposal of property, plant and equipment |
(8) |
(5) |
(3) |
60 |
Impairment of assets |
(24) |
(11) |
(13) |
n/a |
Foreign exchange gains/(losses) |
(51) |
23 |
(74) |
n/a |
Other operating income |
9 |
10 |
(1) |
(10) |
Other operating expenses |
(11) |
(27) |
16 |
(59) |
Operating profit |
1,000 |
1,121 |
(121) |
(11) |
Interest income |
20 |
2 |
18 |
n/a |
Interest expense |
(22) |
(33) |
11 |
(33) |
Share of profits in associates |
1 |
- |
1 |
100 |
Profit before income tax |
999 |
1,090 |
(92) |
(8) |
Income tax expense |
(217) |
(215) |
2 |
1 |
Profit for the period |
782 |
875 |
(93) |
(11) |
Net profit margin |
27% |
42% |
||
Earnings per share,cents |
117.2 |
130.8 |
(14) |
(10) |
EBIT |
1,090 |
1,118 |
(28) |
(3) |
EBITDA |
1,295 |
1,332 |
(37) |
(3) |
Capital expenditure (CAPEX) |
231 |
228 |
3 |
1 |
31 December 2022 |
31 December 2021 |
|||
Debt |
23 |
421 |
(398) |
(95) |
Cash and cash equivalents |
385 |
400 |
(15) |
(4) |
EXTERNAL CHALLENGES AND THEIR IMPACT ON THE COMPANY
OUR RESPONSE
DIVIDENDS
OPERATIONAL PERFORMANCE IN 2022
ยท Net profit margin declined from 42% in 2021 to 28% in the reporting period.
Ilya Shirokobrod, CEO of Raspadskaya Coal Company, commented:
"Last year was one of the most challenging period in the Company's history. The Group was materially impacted by the increased geopolitical tension, global economic slowdown, weaker demand for coking coal amid a slump in steel production, and increased competition in Russia driven by export restrictions.
However, we demonstrated robust financial results on the back of higher coal prices, with revenue reaching US$2.8 billion and EBITDA coming in at US$1.3 billion. In 2022, we paid US$247 million in dividends, and also used about US$400 million to pay off debt. At the same time, operational performance in 2022 did not live up to our expectations.
Needless to mention that last year we drafted a new development strategy for the Company and sought to standardise our key production processes as a way to ensure successful growth and higher production volumes amid unprecedented market volatility.
Despite the challenges, we don`t hold back on our commitment to sustainability and ESG principles, so the health and safety of our own and contractor employees remain the Company's key priority. Even though we have brought our lost-time injury frequency rate (LTIFR) down to 2.76 in the reporting period, our assets have recorded four fatalities, which is unacceptable. Evidently, there is still a room for improvement of safety controls and prevention measures.
In addition to safety enhancement efforts, in 2022 the Company kept working to meet its 2030 environmental targets and develop its ESG strategy.
Despite the robust financial performance, the Board of Directors does not currently consider the payment of dividends for 2022 to be in the best interests of the Company and its shareholders given the persistently high volatility in key sales markets, geopolitical developments, existing restrictions and the Company's business growth plans.
In 2023, saving the team and ensuring business continuity will remain our top priority. The Company's management and me personally are focusing on keeping our business resilient, streamlining production, and delivering of our plans to ramp up mining volumes. I am confident that our commitment and teamwork will help us tackle all challenges head-on."