According to Ukraine-based DTEK’s CEO Maxym Tymchenko, the energy firm is planning on the sale of coal assets in Russia.
The company is looking to divest its stake in OJSC Obukhovskaya Colliery Group and OJSC Don-Anthracite (Rostov region, Russia).
Proceeds from the sale would be utilised towards reducing its debt of c.$436 m.
Previously, DTEK was negotiating with lenders to restructure its debt.
Mr. Tymchenko said that coal production by the company’s assets in Russia in 2016 will be around 2.6m tonnes of coal. The company seeks to sell 60% of coal in Russia and the rest of coal in Europe.
Hong-Kong based commodity conglomerate Noble Group Ltd. warned that it would post a loss for the 4Q’15 and FY’15 period after facing a $1.2bn non-cash impairment and exceptional charge. Additionally, the company faced a loss on the sale of its subsidiary Noble Agri Ltd.
Noble warned that commodity prices, especially that of thermal coal would continue to remain subdued in the near-term.
The company’s management adopted a conservative price of thermal coal of $55 per tonne to ensure its portfolio cushions itself against lower prices in future. However, prices continue to hover around 2006 lows of $47 per tonne at Newcastle, Australia, an Asian benchmark for thermal coal, for the week ended 22 January.
Lower commodity prices over 2015 have dragged the company’s share prices down over 65% and its credit ratings have been downgraded to junk.