Sadovaya Group S.A. announced unaudited consolidated earnings and operating results for the second quarter and six months ended June 30, 2012. The company announced financial result in the second quarter of 2012 tripling the EBITDA and net profit on quarter to quarter basis to USD 3.6 million and USD 2.1 million respectively.

For the first half, the company reported revenue of USD 27,355,046 compared to USD 43,374,660 for the same period a year ago. The decrease in sales reflects primarily the year-on-year decrease in sales volume on low demand from power generating sector and industrial producers. Operating profit was USD 2,799,514 compared to USD 8,148,305 for the same period a year ago. Profit before tax was USD 2,313,265 compared to USD 8,047,309 for the same period a year ago. Profit for the period was USD 2,804,974 compared to USD 7,804,438 for the same period a year ago. Earnings per share were USD 0.07 compared to USD 0.18 for the same period a year ago. Profit attributable to equity holders of the parent was USD 2,448,177 against USD 7,856,434 a year ago. Net cash flows used in operating activities was USD 6,636,877 compared to USD 11,521,279 for the same period a year ago. The cash outflows from operations were primarily driven by increase in working capital. Purchase of property, plant, equipment and intangible asset was USD 8,189,761 against USD 5,062,052 a year ago. Total capital expenditure was USD 8,181,826 against USD 5,062,052 a year ago. EBITDA was USD 4.7 million.

The sales volumes remained flat in the second quarter of 2012, comparing to first quarter of 2012, adding another 193,000 tonnes.

For the first half of 2012, the company increased mining volumes by 16% year over year and extracted 228,000 tonnes of coal. As of now the group operates 5 long walls with total maximum output capacity of 59,000 tonnes per month. Sales volumes reached 387,000 tonnes for the first half of 2012.