HWANGE Colliery Company Limited has recorded a 50 percent increase in coal production to 175 849 tonnes in the quarter ended March 31, 2020, from 117 165 tonnes achieved in the corresponding period last year.

In a trading update for the quarter under review, the company said it also recorded improved revenue of 860 percent amounting to $219,2 million while gross profit was on a positive growth trajectory rising by 22 percent to $22,8 million.

“In spite of the challenging operating environment, the company recorded an increase in production volumes by 50 percent, a revenue increase of 860 percent, gross profit percent increase of 22 percent and net loss decrease of 65 percent for the three months ended March 31, 2020, compared to the corresponding period in 2019,” said the colliery.

In the quarter under review, HCCL sales volumes, however, decreased by 33 percent for the same period.

The coal producer noted that as a result of Covid-19, local and global economic projections are pointing to a decline in key economic indicators, which may have varying impact on companies, depending on the sector, all of them negative.

“As a provider of coal, which is essential in the provision of electricity to the nation as well as for processes for manufacturers that have re-opened for production, HCCL’s domestic market, which was the target portion of its client base remains in place and so the business remains assured.

“In spite of the challenges, the company has ensured continued production in order to meet customer requirements and ensure business continuity,” said HCCL.

The company said it continues to actively monitor the rapidly evolving situation and an extensive range of business continuity measures are in place.

Such measures include enhanced safety and sanitation protocols at all HCCL’s operating units as well as making significant adjustments to work practices to ensure social distancing.

It said the uncertainty as to the future impact of Covid-19 pandemic on the company has been considered.

LEAVE A REPLY

Please enter your comment!
Please enter your name here