Czech coal miner New World Resources (NWR) posted a record loss in the last quarter of 2013 due to impairment charges the company had to take amid the weak coal price environment. NWR net loss from continuing operations plunged to EUR 466.1mn in Q4 2013 from EUR 53.1mn a year ago.
The weak coal price environment forced the miner to recognise a non-cash impairment charge of EUR 497.3mn bringing its total charge up to EUR 807mn for full-2013, NWR said in a statement on its website.
In full-2013, NWR's net loss deepened to EUR 914.4mn from EUR 6.9mn in 2012.
NWE revenues fell by 18% y/y to EUR 216.1mn in the fourth quarter and by 28% y/y to EUR 850.5mn in 2013. The company swung into a negative EBITDA from continuing operations of EUR 10mn in 2013 from a positive EBITDA of EUR 210mn in 2012 attributable mainly to the decrease in revenues that outweighed the decrease in operating expenses.
NWR, controlled by Czech billionaire Zdenek Bakala, announced a plan in July to sell some of its assets to stay competitive and return to profit. In December it completed the sale of its coke producing subsidiary OKK to Czech group Metalimex for EUR 95mn. It also said it will close its loss-making Paskov mine by the end of 2014 unless it secures state aid to prolong the mine's life.
The miner, which has a debt of some EUR 625mn, said in January it launched a review of its capital structure citing persistent pressure on coal prices and an upcoming expiry of a EUR 100mn revolving credit facility. Consequently, Moody's cut NWR's rating to Caa3 from Caa1 because the ratings agency expects a possible change in the company's capital structure to result in a loss of bondholders.