* Q3 net profit below forecast
* Warns on 2009 prices, sees modest cut of 2009 guidance
* Shares fall
(Adds CFO interview, analyst comments, background)
By Jan Korselt
PRAGUE, Nov 20 (Reuters) - Coal miner New World Resources
<NWRSsp.PR> reported 6 percent net profit growth for the third
quarter but warned that 2009 contracts could be hit by a fall in
coal prices.
The comments weighed on shares in the Dutch-registered NWR
<NWRS.L>, which shed as much as 14 percent in Prague to a new
low and were down 7 percent at 64 crowns by 1207 GMT,
underperforming a 4.3 percent drop of Prague's PX index <>.
The stock has been on a rollercoaster ride since its May
listing, rising as much as 43 percent as coal prices soared and
analysts issued a slew of buy recommendations before collapsing
in recent weeks. It is now down 86 percent from its IPO price.
"The share price dropped more than 10 percent after the
results announcement mostly due to negative global sentiment,
but also due to the uncertainty regarding 2009 sale volumes and
prices," Komercni Banka analyst Josef Nemy wrote in a note.
NWR, which runs the main Czech hard coal mines, said the
retreat in global coal prices on the back of expected drop in
demand was affecting its talks on 2009 delivery prices, but
visibility remained limited.
"Our coal sales contract negotiations for 2009 have
commenced with many of our customers, but it is too early to
gauge the extent that these will be impacted by broader economic
issues," the group said in a statement.
It added it still expected to contract all 2009 volumes, and
that it saw a modest reduction in 2008 coke price guidance of
320 euros per tonne due to market volatility.
In a telephone interview, NWR Chief Financial Officer Marek
Jelinek sounded a more upbeat note.
"Obviously the region and the world is facing tough economic
times next year," Jelinek said.
"But we are cautiously optimistic, not least because there
continues to be a significant (coal) shortage."
Like most miners, NWR typically sets prices in most
contracts a year ahead. Stronger prices have helped lift its
earnings, although the company was hit by bad bets on
derivatives as the dollar and the euro soared against east
European currencies.
Third-quarter net profit of 70.8 million euros was below the
81 million average forecast in a Reuters poll, while operating
profit tripled to 123 million, in line with expectations. Sales
rose by a half to 506 million euros.
The results are not fully comparable to the previous year
due to restructuring ahead of its initial public offering in May
this year.
Jelinek told broadcaster CT24 on Thursday the company would
not exclude a share buyback but added that keeping a strong cash
position was still a priority.
(Writing by Jason Hovet and Jana Mlcochova; Editing by David
Cowell)
