Current Report No. 1/2024

Date of preparation: 22 January 2024

Subject: Information on preliminary financial results for 2023

General legal basis: Article 17(1) of MAR – confidential information

Content:

The Management Board of Lubelski Węgiel Bogdanka S.A. (“Company”) hereby reports that on 22 January 2024 it became aware of the preliminary financial results of the LW Bogdanka Group for 2023 and decided to make them public.

Consolidated financial results of the LW Bogdanka Group for 2023:

Net sales revenue: PLN 3,939.3 million
EBITDA: PLN 1,345.2 million
EBIT: PLN 839.8 million
Net profit: PLN 687.1 million

Commercial coal output in 2023 was 7,053 thousand tons, while sales totaled 6,703 thousand tons.

The financial performance of the LW Bogdanka Group for 2023 continued to be pressured by unexpected geological events in late 2022 and in the first half of 2023, as well as by high input prices. The negative impact of the above events was mitigated by higher contract prices, as a result of which the LW Bogdanka Group generated record high financial results.

In addition, the above estimated 2023 results were affected by an impairment loss of PLN 48.5 million (all of which has already been captured in H1 2023), recognized in connection with the potential risk of losing some of the machinery and equipment located in longwall 3/VII/385, as well as some of the galleries by to this longwall.  

The achieved output level is in line with the updated output target for 2023.

At the same time, we report that the company has rebuilt its production capacity and is assuming a preliminary production plan for 2024 of approx. 9 million tons.

The final financial performance will be presented in detail in the financial statements of LW Bogdanka S.A. and the consolidated financial statements of the LW Bogdanka Group for 2023.