Chelyabinsk Zinc Plant
|
29 April 2011 г. | 13:52
Chelyabinsk Zinc Plant Announces 2010 Audited IFRS Results
Chelyabinsk Zinc Plant, Russia's largest producer of zinc and zinc alloys, is pleased to announce its audited IFRS financial results for the year ended December 31, 2010.
2010 HIGHLIGHTS
• Chelyabinsk Zinc Plant's (CZP) revenue for 2010 totaled RUB 11,810 million compared to RUB 10,167 million for the last year.
• 2010 EBITDA amounted RUB 2,806 million or 24% of revenue compared to an EBITDA of RUB 2,070 million in 2009 or 20% of 2009 revenue.
• Net income for 2010 was RUB 1,414 million compared to RUB 643 million for 2009. 2010 Consolidated financial results
|
(in millions of Russian Roubles)
|
2010
|
2009
|
Change, %
|
|
Revenue
|
11,810
|
10,167
|
16%
|
|
Gross profit
|
3,312
|
2,178
|
52%
|
|
Gross margin, %
|
28%
|
21%
|
|
|
EBITDA (1)
|
2,806
|
2,070
|
36%
|
|
EBITDA margin, %
|
24%
|
20%
|
|
|
Profit before income tax
|
1,907
|
891
|
114%
|
|
Net income
|
1,414
|
643
|
120%
|
|
Net margin, %
|
12%
|
6%
|
|
(1) EBITDA, for any relevant period, represents operating profit before interest, tax, depreciation and amortization.
EBITDA is not a measurement of CZP's operating performance under IFRS and should not be considered as an alternative to operating profit or any other performance measure derived in accordance with IFRS.
Reconciliation of EBITDA to net income is as follows for the periods indicated:
|
|
2010 2009
|
|
|
(in millions of Russian Roubles)
|
||
|
Profit for the period
|
1,414
|
643
|
|
Add:
|
|
|
|
Depreciation and amortization
|
857
|
898
|
|
Finance income and costs, net
|
(57)
|
102
|
|
Foreign currency exchange loss, net
|
38
|
51
|
|
Income tax expense
|
493
|
248
|
|
Impairment of property, plant and equipment
|
10
|
70
|
|
Impairment of assets held for sale
|
47
|
0
|
|
Exploration and evaluation costs
|
4
|
58
|
|
EBITDA
|
2,806
|
2,070
|
|
Production and Sales
|
In 2010 CZP produced 153.3 thousand tonnes of salable SHG zinc and zinc based alloys, that is 28% higher compared to 2009 (119.9 thousand tonnes).
CZP sales for the period were 154 thousand tonnes, which is 29% more than for 2009 (119.8 thousand tonnes). 51% (79.1 thousand tonnes) of zinc and zinc alloys was supplied to the domestic market; 48% (73.5 thousand tonnes) - was supplied under a tolling agreement with UMMC; export constituted 1.4 thousand tonnes (2009: domestic market - 76.4 thousand tonnes, export - 43.4 thousand tonnes).
CZP's affiliated company, Nova Zinc LLP, operator of Akzhal zinc and lead ore mine in Kazakhstan produced 31.4 thousand tonnes of zinc in zinc concentrate for 2010 (2009: 34.8 thousand tonnes). Lead in lead concentrate production for 2010 totaled 4.3 thousand tonnes (2009: 4 thousand tonnes).
CZP's subsidiary, The Brock Metal Company Limited (the leading UK supplier of zinc die- casting alloys) sold 27.2 thousand tonnes of products for 2010 (including 24.4 thousand tonnes of zinc alloys), an increase of 22% as compared to 2009.
Consolidated revenue increased by 16% for 2010 to RUB 11,810 mln.
An average LME zinc price increased by 30% to US$2,159/tonne in 2010. The LME lead price followed a similar pattern during 2010, with an average price of US$2,148/tonne (24% higher than in 2009).
|
Revenue structure
|
In 2010 CZP's revenue from sale of zinc and zinc alloys decreased by 14% compared to 2009, to RUB 5,939 mln. Decrease of this revenue was due to the fact that part of zinc metal was supplied under a tolling agreement. The decrease was partly compensated by the growth of LME zinc price by 30% and by 4% increase of sales on the domestic market.
In 2010 revenue of The Brock Metal Company Limited amounted to RUB 1,877 mln, 52% more as compared to 2009. The main factors of the growth were increase of sales volume and increase of LME zinc prices.
In 2010 CZP received revenue of RUB 1,767 mln under tolling agreement. In 2010 CZP received a fixed processing fee of RUB 24,000 per tonne of zinc.
Revenue from sale of lead concentrate for 2010 amounted to RUB 696 mln (2009: RUB 571 mln). In 2010 Nova Zinc LLP supplied 3.9 thousand tonnes of lead in lead concentrate, 31% less than in 2009 (5.7 thousand tonnes). At the same time CZP significantly increased its sales of lead in lead concentrate to 7.9 thousand tonnes (2009: 5 thousand tonnes). Also the growth of LME lead prices and improvement of sales conditions had a beneficial effect on the revenue.
In 2010 revenue from CZP's other products increased by 16% to RUB 1,531 mln. It was mainly caused by increase of sulphuric acid, cadmium and zinc sulfate sales.
|
(in millions of Russian Roubles)
|
2010
|
2009
|
|
Raw materials and consumables used in production
|
4,414
|
4,262
|
|
Utilities and fuel
|
1,703
|
1,282
|
|
Depreciation and amortization
|
781
|
806
|
|
Staff cost
|
736
|
590
|
|
Repairs and maintenance
|
584
|
399
|
|
Mineral extraction tax
|
162
|
172
|
|
Cost of goods and material for resale
|
147
|
301
|
|
Production overheads
|
91
|
104
|
|
Change in finished goods
|
51
|
136
|
|
Impairment of property, plant and equipment
|
10
|
70
|
|
Inventory provision
|
(5)
|
(395)
|
|
Change in work-in-progress
|
(19)
|
88
|
|
Physical inventory count adjustment
|
(55)
|
195
|
|
Precious metal revaluation
|
(102)
|
(21)
|
|
Cost of sales
|
8,498
|
7,989
|
In 2010 cost of sales increased by 6% to RUB 8,498 mln as compared to 2009.
Cost of materials and consumables used primarily comprise cost of zinc concentrate, materials for alloys production, secondary raw materials and auxiliary materials used in the zinc production process. These costs increased by 4% to RUB 4,414 mln. The main reasons are the production volumes growth and increase of LME zinc prices. Cost of materials increased disproportionately due to the fact that concentrate was partially supplied under the tolling agreement.
In 2010 costs of utilities and fuel increased by 33% to RUB 1,703 mln. This increase was primarily due to a growth of electricity consumption at CZP's production facilities in Chelyabinsk as a result of an increase of overall production levels and growth of electricity tariffs (2010: RUB 1.797 per kWh; 2009: RUB 1.671 per kWh) and other fuel prices for CZP. Also costs of fuel for Nova Zinc LLP increased due to increased stripping activities. In addition, there was growth of electricity tariffs (by more than 25%) and diesel fuel prices (by almost 1.4 times) for Nova Zinc LLP.
Staff costs increased by 25% to RUB 736 mln as compared to 2009 reflecting mainly the growing trend of average salaries in Russia and Kazakhstan.
Distribution costs include primarily transportation costs and customs duties. In 2010 these costs grew by 20% to RUB 502 mln due to increase of transportation costs of sulphuric acid and lead concentrate to consumers.
General and administrative expenses amounted RUB 634 mln in 2010 which is consistent with the level of such expenses in 2009 (RUB 630 mln).
Other operating income and expenses mainly include provisions, income and expenses from disposal of property, plant and equipment, social expenses, net loss on disposal of property, plant and equipment.
The expenses increased due to works related to dismantling of equipment at CZP in 2010 and reversal of provision for bad debts in 2009.
Net profit for 2010 was RUB 1,414 mln compared to RUB 643 mln in 2009.
Комментарии могут оставлять только зарегистрированные (авторизованные) пользователи сайта.