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Investment Story

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SUEK is one of the top integrated energy companies in the world.

Despite SUEK not being listed on the stock market, we seek to comply with the best international standards on corporate governance and disclosure. We publish regularly audited financial statements, annual reports and sustainability reports. This transparency of information means all interested parties are able to make an accurate appraisal of the investment potential in our company.

SUEK’s vertically-integrated business model ensures we have extensive control over our value chain from deposit development to commodities and power sales to final customers, with large, high-quality deposits, cost-efficient mining and modern quality-assured washing plants enabling us to produce wide variety of coals with less than average content of Sulphur and Nitrogen, highly efficient co-generation power plants, own logistics including higher-capacity railcar fleet and high-tech port infrastructure, and distribution network in key global markets.

Our strategy

According to the International Energy Agency, in 30 years’ time coal will still be one of the the major sources of power generation globally. The volume of international coal trade will increase compared to current levels and trade flows will continue to move towards Asia.

Our strategy is focused on developing our coal assets which are situated closest to this growing Asian market. A significant proportion of the coal we produce is high-calorific with low Nitrogen and Sulfur, which is highly in demand in Asia and attracts a higher price than other lower-grade products.

We are one of most cost-efficient coal producers in our sector and we are committed to a programme aimed at further improving operational costs – from production to delivery,– in order to maintain profitability at all stages of the market cycle.

At the same time, we actively diversify our revenue. Thanks to integration of energy business, SUEK guarantees sales of a considerable part of own produced coal. Energy business significantly contributes to the financial stability of the company, ensuring a steady cash flow from the supply of electricity and heat, which are in stable demand. Thus, domestic sales of coal, electricity, and heat help reduce the effect of volatility in global coal prices.

We also develop our logistics capacities including railcars and ports which allow us to transport and transship own cargoes and cargoes of third parties on time and at the optimum cost.

Sustainable growth model

SUEK is a stable business demonstrated by its healthy financial results. We target a safe Net Debt to EBITDA ratio and optimal debt duration. We aim to sustain a positive credit rating and ensure all our development projects are cost efficient. SUEK's systems of internal audit, risk management, compliance control over all internal processes and timely receiving of information by our management and members of the Board of Directors.

Considering the particular nature of the coal mining industry and the inherent risks in this sector, we constantly look to improve industrial safety and thereby decrease injury rates. We also aim to reduce our adverse impact on the environment by introducing innovations in coal mining, coal processing, and energy generation. We increase our energy efficiency and optimise capacity usage raising the share of cogeneration of heat and electricity through replacement of old boiler houses.

We continually invest in our people and communities. Our employee development programme is based on best international practices. We significantly contribute to the development of the regions where we operate – being one of the largest taxpayers in the regions of presence and implementing social, infrastructural, educational, medical, environmental and sports programs for employees, their families and local residents.

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