NWR has just reported 4Q12 net loss of 48 mln. EUR vs. 37 mln. EUR expected on higher than expected negative inventory revaluation (-15 mln. EUR vs. -2 mln. expected by us) Targets for 2013 were broadly maintained. We see results as slightly NEGATIVE for the short-term as well as we expect a yesterdays‘ US negative sentiment after FED minutes can add some pressure on the stock.
NWR - 4Q12 results | Sales | 391,6 | 286,2 | 290,2 | 295 | -27% | -3% |
| EBITDA | 85 | -3,8 | 11,5 | 13,9 | x | x |
| EBIT | 40,7 | -40,9 | -32,5 | -29 | x | x |
| Net income | 8,8 | -48,3 | -36,8 | -37,2 | x | x |
NWR - 12M12
| Sales | 1 632,50 | 1 299,00 | 1 303,00 | 1 307,80 | -20% | -1% |
| EBITDA | 454 | 223 | 238,3 | 240,7 | -51% | -7% |
| EBIT | 235,4 | 56 | 64,4 | 67,9 | -76% | -18% |
| Net income | 128,7 | -1 | 10,6 | 10,2 | x | x |
The company see market conditions to „stay challenging“ in 2013 with „tough market conditions“ for thermal coal and „improving“ coking coal prices, which we consider as in-line with investors expectations and previous statements.
As for FY13 guidance, the company targets coal production of 10-11Mt and coke production of 800kt as was guided a month ago and adds external sales target of 9.5-10.5Mt of coal equally split between coking and thermal coal. Coke sales target is 700kt. The company also expects broadly flat mining and coke conversion unit costs ex. FX.
NWR is substantial decreasing CAPEX to 120-130 mln. EUR in 2013, including 10 mln. EUR on Debiensko project.
The company also released a strategic outlook and set out objectives for 2017. NWR aims to double european coking coal sales to 10Mt through a mixture of mining projects and marketing initiatives or to reduce annual maintanance CAPEX to 100-150 mln. EUR (currently over 200 mln. EUR) which sounds positive, nevetheless we need some more clarifying to stategic outlook. Also, Debiensko project seems to be re-establish but with limit progress in 2013.