Profits Down For Sokolovska Uhelna Brown Coal Mining

OKD Coal Mine

Prague, July 31 (CTK) – Profit of Sokolovska uhelna brown-coal mining company dropped to Kc564m last year from a previous Kc1.094bn after-tax profit, while sales grew by 1.5 percent to Kc6.85bn, server wrote today, referring to the company’s annual report.

However, in 2016 the company’s profit was distorted by extraordinary influences, in particular ending many years of disputes over coal prices with CEZ energy group.

The agreement included, among other things, takeover of the Tisova power plant from CEZ at the beginning of last year.

The power plant did not help raise Sokolovska uhelna profit, thought, it showed over a Kc116m loss last year.

Apart from this acquisition, the company invested in waste incinerating technology, a new control system, modernisation of turbines in the steam-gas power plant of Vresova and conveyor belts for coal transport, noted.

According to the annual report, Sokolovska uhelna mined 6.9 million tonnes of brown coal last year and 3.3 million tonnes of the amount was sold to external buyers. The rest was used by its two power plants in Vresova.

The company supplied 3,090 gigawatt hours of electricity to the grid last year, compared with 3,323 GWh supplied a year earlier, according to the previous annual report.

Sokolovska uhelna was set up in 2004. Besides coal mining, it also produces electricity and is involved in engineering, construction and other sectors.