Bogdanka's results under pressure from impairment loss
Lubelski Węgiel Bogdanka S.A. has published consolidated financial results for H1 2024. LW Bogdanka Group’s revenues for H1 2024 reached PLN 1,670.6 million while EBITDA stood at PLN 262.7 million.
Commercial coal output in the period under in question was 3.5 million tons, while sales were 3.6 million tons.
The financial results for the first half of 2024 reflect the challenges we face in the coal market. Declining demand for our product and lower market prices are affecting our business, but we are taking the necessary steps to adapt to the dynamic changes in the environment. The decision to recognize an impairment loss for the carrying value of non-current assets was necessary to accurately reflect future market prospects in the current value of our assets in light of future market prospects. However, it is worth emphasizing that this operation is purely accounting in nature and does not affect our current liquidity or EBITDA. We are continuing optimization activities and cooperation with coal buyers, both domestic and foreign, which allows us to effectively plan sales in the long term. We have also begun to update the assumptions of our strategy in order to respond appropriately to challenges and opportunities in the market,
- said Artur Wasilewski, Vice-President of the Management Board for Economic and Financial Affairs.
The total length of roadway excavations completed in H1 2024 was 11.7 km. Reconstruction of excavations was carried out according to the adopted schedules. Total expenditures on reconstruction of roadway excavations in this period amounted to PLN 45,5 million.
Mining yield was 63.2%, and was 9.3% higher than in the corresponding period a year ago.
The company has upheld its strong market position. At the end of H1 2024 it had a 31.6% market share in coal supplies to the commercial power sector.
Approximately 79% of coal (in value terms) in H1 2024 was sold to Enea Wytwarzanie sp. z o.o. and Enea Elektrownia Połaniec S.A. In the corresponding period of 2023 the share of the above buyers was approx. 10.0 percentage points higher.
In H1 2024, the LW Bogdanka Group incurred capital expenditures of nearly PLN 476.4 million. The largest chunk of this amount, PLN 229.8 million, was spent on new roadways and modernization of existing ones.
The table below portrays the LW Bogdanka Group’s financial results in H1 2024:
[PLN 000s] | H1 2023 | H1 2024 | Change |
|---|---|---|---|
Net revenues on sales | 1,825,080 | 1,670,581 | - 8,5% |
EBITDA | 532,796 | 262,660 | - 50,7% |
EBIT | 274,932 | - 1,131,993 | - 511,7% |
Net profit/loss | 225,847 | - 907,970 | - 502,0% |
LW Bogdanka S.A. to lider rynku producentów węgla kamiennego w Polsce, wyróżniający się na tle branży nowoczesnością i efektywnością wydobycia. Jest jedną z największych polskich kopalń węgla kamiennego. Lubelski Węgiel Bogdanka S.A. prowadzi przede wszystkim działalność górniczą w zakresie wydobywania, wzbogacania i sprzedaży węgla kamiennego. Spółka dostarcza surowiec głownie do odbiorców przemysłowych. Realizacja dostaw oparta jest o umowy wieloletnie, a kierunek zbytu to energetyka zawodowa i przemysłowa.
Od czerwca 2009 r. spółka notowana jest na Giełdzie Papierów Wartościowych S.A. w Warszawie.
Od października 2015 r. Bogdanka wchodzi w skład Grupy Enea, wicelidera polskiego rynku elektroenergetycznego w zakresie produkcji energii elektrycznej, zarządzającego pełnym łańcuchem wartości na rynku energii elektrycznej: od paliwa, poprzez produkcję energii elektrycznej, dystrybucję, sprzedaż i obsługę klienta.