New World Resources delivers robust figures despite slowing demand

Central Europe-focused coal miner New World Resources saw revenues from continuing operations rise by three percent in 2011, however, profits declined against a tough comparator.

Consolidated revenues rose from €1,590m to €1,632m, despite demand for steel experiencing a slowdown.

However, a €130m profit from continuing operations was 44% lower than last year which benefited from a one-off €82m gain on the sale of its Energy business and a tax refund of €23m. Underlying profits rose 1% to €128m.

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Pre-tax profits fell from €252.08m to €186.97m, while (continuing) earnings before interest, tax, depreciation and amortisation fell 2% to €454m.

"With an EBITDA of €454m, NWR has delivered one of its best financial performances ever in a period that has been characterised by severe challenges in the global economy. The progressive deterioration in business confidence in the Eurozone during the second half of 2011, combined with an uncertain macroeconomic outlook significantly compounded the slowing down in demand for steel and its raw materials in our target market," said Chairman Mike Salamon.

With total coal output at 11.2m tonnes (Mt), and total external coal sales at 10.6Mt, NWR slightly exceeded its full-year targets for 11Mt and 10.3Mt, mainly due to higher volumes of thermal coal. Coke sales were within the 525-575kt range.

As for 2012, NWR expects to produce between 10.8-11Mt of coal and 700kt of coke.

A final dividend of 7 cents per share is being proposed, taking the full-year dividend to 23 cents.

Net debt at the end of the period (December 31st) stood at €391m, up 22% on the year due to the payment of last year's dividend.

Shares were edging 0.97% higher in morning trade on Thursday, trading at the 519p level by 10:13.

BC