Traded as MCX: KZRU Area served Worldwide Founded 19 May 1964 | ||
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Native name ОАО УК "Кузбассразрезуголь" Subsidiaries Taezhnyi Ugol'nyi Razrez OAO | ||
UK Kuzbassrazrezugol OAO (Russian: ОАО УК "Кузбассразрезуголь", and also known as KRU) is a Kemerovo, Russia-based coal company. The company extracts, processes, and distributes coal domestically and internationally. Kuzbassrazrezugol's products are used primarily in the energy sector and metallurgical industry.
Contents
- Summer youth programs
- Financial performance
- Institutional shareholders
- Market position and future outlook
- Recent news
- References
The company is majority-owned by Iskander Makhmudov and Andrei Bokarev. Combined, the two men own 75% of the company. Iskander Makhmudov is an Uzbek businessman based in Russia who has been referred to as "one of Russia’s most prominent involved industrialists" who has contributed more than $1 billion to social, civic and philanthropic causes since 2001.
Summer youth programs
In the summer of 2013, the company paid for the children of employees to attend a summer recreation camp. Over 270 children attended the program, and the company invested over $24 million into it. According to Metal Mining Wire, the program is "aimed at providing recreational opportunities for the families of deceased employees and single parents."
Financial performance
As of December 12, 2012, the company’s market cap is $3.3 billion. According to Bloomberg Businessweek: "Year over year, Kuzbassrazrezugol Open Joint - Stock Coal Company has been able to grow revenues from 50.8B to 60.9B. Most impressively, the company has been able to reduce the percentage of sales devoted to selling, general and administrative costs from 19.92% to 16.78%. This was a driver that led to a bottom line growth from 7.4B to 8.2B."
Institutional shareholders
Top institutional shareholders include:
Market position and future outlook
According to an equity research report from the BCS Financial Group (BrokerCreditService (BCS) Ltd):
Additionally, the equity report writes, "All the branches will easily operate their pits during next 35 years owing to significant coal resources.”
Kuzbassrazrezugol is working on a $300-500 million project to build a new coal export port named Lavna in the Kolskiy bay of the Barents Sea, to be capable of shipping 18 million tons of coal per year. This was a joint project with Siberian Business Union until the latter withdrew in 2013.