13th Feb 2014 09:45
LONDON (Alliance News) - New World Resources PLC Thursday said it swung to a pretax loss for the full year as lower coal prices hit company finances.
The Central Europe-focused hard coal and coke producer posted a pretax loss of EUR1.06 billion for the twelve months ended December 31, 2013, compared from a pretax profit of EUR3.1 million the previous year.
The company's gross profit fell 98% to EUR6.6 million from EUR265.8 million in 2012.
New World Resources said its revenues fell 29% to EUR850.5 million from EUR1.18 billion in 2012 as coal prices fell significantly during the year.
The company said that its full-year average coking coal sales price was down 22% to EUR98 per tonne and its full-year average thermal coal price was down 24% to EUR56 per tonne.
New World Resources also noted a large impairment cost of EUR806,964 due to revised value of its properties, plant and equipment based on the lower coal prices.
The company said its coal production fell 21% to 8.8 million tonnes from 11.2 million tonnes in 2012 and its sales volumes fell 5% to 9.7 million tonnes from 10.2 million tonnes the previous year.
However, New World Resources said it expects to lower overheads in 2014 and announced a full-year 2014 production and sales volume target of 9 million to 9.5 million tonnes.
In addition, the company noted the death of two miners lives during the year but said its loss of time rate improved during the year by 3%. It said it is committed to achieving fatality-free operations.
New World Resources shares were down 6.9% to 47.25 pence, putting it amongst the biggest fallers in the London market Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
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