you are here: Main page » News

News

2017-09-08

Very good financial and operating results after the first half of 2017

In H1 2017 the Lubelski Węgiel Bogdanka Group generated revenue in the amount of PLN 902.1 million (up by 6.3% y/y) and net profit of PLN 112.1 million (up by 49.6% y/y). In the period in question, EBIT amounted to PLN 147.5 million (up by 52.7% y/y), while EBITDA totalled PLN 318.6 million (up by 14.9% y/y).

LW Bogdanka continues to distinguish itself in the industry with its very good results thanks to a permanent cost control and optimisation of capital expenditure. The Company’s EBITDA in H1 2017 reached 35.3%, which means it is one of the highest in the coal sector.

Bogdanka’s market position is stronger than before. After H1 2017, the Company’s share in the market of thermal coal sales accounted for 18.0%, and its share in the market of thermal coal sales to commercial power plants accounted for 26.2%.

Production in Q2 2017 was performed as per the plan totalling 2.1 million tonnes (up by  9.5% y/y). Sales in the same period was slightly higher than production covering 2.3 million tonnes (up by  3.6% y/y). In the whole first half of this year coal extraction reached the level of 4.6 million tonnes (up by 6.4%). Sales in this period remained at a similar level – i.e. of 4.7 million tonnes, which means that it increased by 6.5% y/y. The length of gallery workings completed in the first half of 2017 totalled 15 km, which represents a growth by 16.3% compared to the same period of 2016.

Owing to a change in the walls mix and better output quality (higher extraction from the cutting machine walls), LW Bogdanka has been recording a growing yield level since Q2 2016; in Q2 2017 it was approx. 68.3% compared to 61.2% w Q2 2016.

Financial and operating results of LW Bogdanka achieved after the first half of this year are, to my opinion, very good. The implementation of production and sales plans as well as consistent cost control and optimisation of capital expenditure made it possible to obtain such results. We continue to declare that our target for this year is to extract and sell approximately 9 million tonnes of coal. We maintain our strong market position with a high market share, and remain the most effective and the most modern hard coal mine in Poland,” said Krzysztof Szlaga, President of the Management Board of Lubelski Węgiel Bogdanka.

Financial and operating results of LW Bogdanka achieved after the first half of this year are, to my opinion, very good. The implementation of production and sales plans as well as consistent cost control and optimisation of capital expenditure made it possible to obtain such results. We continue to declare that our target for this year is to extract and sell approximately 9 million tonnes of coal. We maintain our strong market position with a high market share, and remain the most effective and the most modern hard coal mine in Poland,” said Krzysztof Szlaga, President of the Management Board of Lubelski Węgiel Bogdanka.

Key events of the last six months include announcing, in February this year, the Development Strategy of LW Bogdanka S.A. Mining Area of the Enea Group until 2025 (under the 2030 framework) Further, in June 2017 the Annual General Shareholders Meeting of LW Bogdanka S.A. decided to pay dividend of PLN 1 per share. The dividend totalling PLN 34 million was paid on 2 August 2017.

In order to secure a long-term development of the Company, in July we filed an application for a mining licence for the “Ostrów” deposit with the exploitable resources of about 186 million tonnes. It is an important step towards doubling our exploitable resources and extend the mine’s life to about 50 years from the current 25 years. We do hope we will have obtained the licence by the end of 2017,” added Krzysztof Szlaga.