LW Bogdanka after the first half of the year: higher sales volumes and improved profitability

Despite the price pressure, the Group has maintained a stable liquidity position.  EBITDA increased by 55.6% to PLN 408.6 million and its profitability reached 26.8%, increasing by 11.1 percentage points y/y. EBIT profitability amounted to 20.4%, up by as much as 88.2 percentage points y/y. The group closed the six-month period with a net profit of PLN 264.7 million, compared to a loss of PLN 908.0 million in the previous year.

The Group's results in H1 2025 and 2024 were significantly affected by non-recurring events. In the case of 2025, this was the compensation received for damages to the underground assets. On the other hand, in 2024 the Group's results were charged by a write-down on the carrying amount of assets, which should be taken into account when analysing the trends in the results for H1 2025.

In H1 2025, Bogdanka strengthened its leading position in the coal sector, maintaining high operational efficiency in an increasingly challenging market environment. Higher coal yields and increased sales volumes show that investment in preparation and modernisation generate tangible results. We are able to adapt production flexibly to changing market needs, while ensuring the financial stability of the Group. This is not easy in an unbalanced competitive situation - we deal with subsidised Silesian coal, which affects pricing mechanisms and pressure on our profitability. However, our primary goal continues to be further strengthening our market advantages through efficient steam coal production and developing our business towards sustainable industry and energy transition. We plan to invest extensively in innovation, business diversification and environmentally-friendly initiatives, while caring for local communities. This will allow us to continue the development of our business and build a sound foundation for the implementation of our strategic plans

- says Zbigniew Stopa, President of the Management Board of LW Bogdanka.

Production and sales

In H1 2025, LW Bogdanka sold nearly 4 million tonnes of commercial coal, up by 10.3% y/y. Higher sales allowed for mitigating the impact of falling coal sales prices and strengthened the company's position in the market. The Group's share of coal supplies to the commercial power industry in Poland increased to 35.7%, compared to 34% in Q1 this year and 31.6% at the end of H1 2024.

From January to June 2025, the Group produced approx. 3.9 million tonnes of commercial coal, 375 thousand tonnes more than in the corresponding period of 2024 (+10.7%). Yield reched 66% compared to 63.2% in H1 2024.

Coal sales to Enea Wytwarzanie sp. z o.o. and Enea Elektrownia Połaniec S.A. accounted for almost 80% of total revenue on sales. In the first six months of 2024, the share of these two key customers was almost identical and amounted to 79%.

Investments

In H1 2025, the LW Bogdanka Group allocated approx. PLN 299.3 million for investment in H1 2025, corresponding to 42.9% of the annual CAPEX. Most of the expenditure, almost 70%, was incurred on creating new pits and upgrading existing ones. The total length of pits excavated in Q1 2025 reached 9.0 km.

Financial results

In H1 2025, the Group generated revenue of almost PLN 1.52 billion, down by 8.9% compared to the corresponding period in 2024.

The Group's EBITDA result amounted to PLN 408.6 million, increasing by 55.6% y/y. Operating EBIT increased to PLN 310.8 million from a loss of approximately PLN 1.1 billion a year earlier, (-127.5% y/y). Net profit amounted to almost PLN 264.7 million compared to the net loss of PLN 907.8 million in H1 2024 (-129.2%).

After six months of 2025, the EBITDA margin was 26.8%, 11.1 percentage points higher than in the corresponding period of 2024. The Group's liquidity position remains stable.

The results of the period were also significantly affected by the compensation in the amount of PLN 144.85 million received for damages to underground assets and lower depreciation resulting from the lower carrying amount of non-current assets, due to impairment losses applied in 2024.

When analysing the developments in the results, it is worth recalling that in Q2 2024, due to indications of potential impairment, LW Bogdanka created a PLN 1.17 billion impairment loss on fixed assets. This write-down charged the operating result and net result, however, it did not affect EBITDA or the Company's liquidity position.

The results of H1 2025 show that we are successfully maintaining sound financial performance despite the deepening decline in coal sales prices. We recorded a significant increase in EBITDA and operating profit, ending the semi-annual period with a strong net profit, however, it should be remembered that the results of the first half of this year were significantly affected by the compensation received and lower depreciation and amortisation resulting from the write-down of property, plant and equipment in 2024. It is also worth noting that we operate in the reality of a non-level playing field due to the presence of subsidised Silesian coal in the market, which affects the results we generate. Despite a consistent programme of cost optimisation and CAPEX, under the current market conditions, it is becoming increasingly difficult to generate positive margins or cash flow

- says Artur Wasilewski, Vice-President of the Management Board for Economic and Financial Affairs.

Key financial data (in PLN thousand)

* Due to the indications of potential impairment, LW Bogdanka created an impairment loss on fixed assets in the amount of PLN 1.17 billion. This write-down charged the operating result and net result, but did not affect EBITDA or the Company's liquidity position.

For further information, please contact:

Marcin Kujawiak, Lubelski Węgiel "Bogdanka" S.A.
phone 667 45 02 94
e-mail: mkujawiak@lw.com.pl

Magda Kolodziejczyk, M+G
phone 22 416 01 02, 501 16 88 07
e-mail: magda.kolodziejczyk@mplusg.com.pl