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Universal Coal increases financial outlook to AUD 70 million

Coal News - Published on Mon, 02 Jul 2018

Image Source: SteelGuru
Universal Coal Plc announced that the Company is expected to exceed the updated EBITDA guidance released to market in January 2018.

1. 28% higher attributable EBITDA than per previous half year guidance

a). Attributable EBITDA of AUD 48.5 million expected for FY2018.

b). Group EBITDA expected for FY2018 is AUD 70 million – a 27% increase on the previous guidance AUD 55 million.

c). Guidance is based on actual results year-to-date and internal assumptions for the international coal price, foreign exchange forecasts, prevailing contract prices and estimated costs for the June 2018 month.

2. Record production of 4.7Mt (2.9Mt attributable), up 2% from guidance

a). Kangala Colliery is expected to delivered more than 2.5Mt of product to Eskom for FY2018.

b). New Clydesdale Colliery exceeds the committed tonnes for FY2018 by 14% and benefits by significant increase in API4 export price since July 2017.

On 17 January 2018, Universal provided forward looking earnings guidance for FY2018 that updated the forecast EBITDA for FY 2018 to AUD 55 million (Attributable: AUD 37.9) and projected steady state production of 4.6Mt (attributable of 2.8Mt). The company is pleased to increase the expected EBITDA for the group by 27% to AUD 70 million (Attributable: AUD 48.5 million) and saleable tonnes of 4.7Mt (Attributable:2.9Mt).

The very strong increase in EBITDA for FY 2018 is due to:
1) Strong production performance by the Kangala operation which exceeded the projected sales tonnes by approximately 150Kt for FY2018.
2) The new Clydesdale Colliery achieving 14% more than projected sales tonnes for FY2018. The NCC received approximately AUD 27 of revenue per export tonne more than in the projected forecast for the period January 2018 to June 2018. The increase in revenue contributed an additional AUD 12.2 million of revenue to the financial results for the last six months of the FY2018.
3) The Company forecasts an overall total sales tonnage of 4.7Mt (attributable 2.9Mt) of product sold to market for the FY2018.
4) Operational costs remain in line with forecasts.
5) The original EBITDA was enhanced by a AUD 2.6million FX gain for FY2018 due to the increase in ZAR:AUD exchange rate over the period January to June 2018.

The guidance provided for the financial year ending June 2018 is still subject to the finalisation of the statutory accounts and the audit by the external auditor of Universal Coal Plc. Final results will be released by mid-September 2018.

Source :

Posted By : Joykumar Irom on Mon, 02 Jul 2018
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