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2018-05-24

Results of LW Bogdanka for Q1 2018 under pressure of technical difficulties

LW BOGDANKA S.A. has published financial results for the first quarter of 2018.  The LW Bogdanka Group’s revenue dropped in that period by 14.3% to PLN 398.7 million from PLN 465.2 million a year before. The consolidated EBITDA was PLN 127.5 million, operating profit – PLN 28.5 million, and net profit – PLN 23.2 million.
 

The results were weakened by factors of geological and hydrogeological nature, which translated into temporarily lower yield ratio, and in consequence – to lower production and sales.

On the other hand, the financial result was positively influenced by a settlement achieved between the Company and the consortium of Mostostal Warszawa and Acciona Infraestructuras. This brought a positive effect on the operating profit and EBITDA of approx. PLN 28.7 million.
 

The difficulties we faced in the previous quarter were of a temporary nature. Beginning from March the production is carried our as per the plan. We sustain the declared production plan for the whole 2018 at a level not lower than 9 million tonnes, the President of the Management Board LW Bogdanka S.A., Mr Artur Wasil, has informed.

We are now focused on preparing, through the existing underground infrastructure, the Ostrów deposit covered by a mining licence we obtained in November last year. Launching the first wall is scheduled for 2020, the President added.

 

The production of commercial coal in the period between January and March of 2018 was nearly 2.1 million tonnes compared to 2.4 million tonnes in the analogous period of the last year. The sales of coal arrived at 2.0 million tonnes, compared to 2.4 million tonnes a year before. The average yield was 56.7%, while the figure for the previous year was 66.7%.

The Company’s share in the thermal coal market in Poland after Q1 2018 was 16.5%, and the share in the supplies of coal to the commercial power plants stood at a level of 22.7%.

 

The consolidated financial highlights of the LW Bogdanka Group for Q1 2018

The consolidated financial highlights of the LW Bogdanka Group for Q1 2018 are presented in the table below:

PLN ‘000 Q1 2018 Q1 2017 Zmiana
Net revenue 398,697 465,166 -14.3%
EBITDA 127,476 179,820 -29.1%
EBIT 28,508 89,743 -68.2%
Net profit 23,169 68,179 -66.0%

 

In May Bogdanka has filed an application for the mining licence for the “K-6 and K-7” deposit. The exploitable resources covered by the Deposit Development Project in the licence period, for which the Company applies, namely until 2046, are estimated at 66 million tonnes. Bogdanka also plans to apply for the extension of the licence, which will enable the resources to be increased by further 60-70 million tonnes. The first wall on the “K-6 and K-7” deposit may be started in 2022, assuming that licence will be granted even this year.