More than pln 2.6 billion of revenue on sales in three quarters of 2024

The Group achieved an EBITDA result of PLN 539.3 million, while operating and net results were charged by a write down on impairment of assets. This write down charged the operating result (which amounted to PLN -945 million) and the net result (PLN -756.1 million), but did not affect EBITDA or the liquidity position of the Company.

Only in Q3 2024, revenue on sales increased by 7.6% YoY. EBITDA increased by 96.7%, the operating profit by 449.3% and net profit rose by 392.1%.

The financial results for the third quarter of 2024 demonstrate the Company's strength and ability to adapt to difficult market conditions. Despite challenges such as falling demand for coal, lower commodity prices, rising production costs and wage pressure, LW Bogdanka generated very good results in this period. The greatest successes were recorded at a level of operating results - EBIT more than tripled reaching nearly PLN 187 million and net profit increased fourfold to PLN 151.8 million, confirming the effectiveness of the Company's activities in terms of cost optimisation and cooperation with key customers. Despite the difficult market environment, these measures allowed us to maintain our position as the efficiency leader in the Polish mining industry, while at the same time we were able to adapt production flexibly to current market needs. The operating and net result for three quarters was charged with an asset impairment write down, which was a non-recurring event and has not affected EBITDA or the liquidity position of the Company.

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

In the three quarters of 2024, LW Bogdanka generated consolidated revenue on sales of over PLN 2.6 billion, 3.3% less than in the corresponding period of 2023.  The Group's EBITDA amounted to PLN 539.3 million, down 19.9% YoY. Due to 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 (which amounted to PLN -945 million) and the net result (PLN -756.1 million), but did not affect EBITDA or the liquidity position of the Company.

The financial results generated by the Group in three quarters of 2024 were significantly affected by the lower sales price of coal, but the increase in sales volume by over 25% had a positive impact on the revenue generated. By increasing sales, the effects of price reductions were partially offset, thus mitigating the financial pressure associated with the difficult market situation.

During nine months of 2024, the commercial coal production of LW Bogdanka amounted to 5.37 million tonnes, 813 thousand tonnes more (+17.8%) than in the corresponding period of 2023. Yield during this period increased to 63.5% (+6 percentage points).

The Company maintains its strong market position, reaching a 31.6% share in the supply of coal to the commercial power industry at the end of Q3 2024. Sales of commercial coal in Q1-Q3 amounted to 5.7 million tonnes (+25.1% YoY). In terms of value, sales of coal to Enea Wytwarzanie sp. z o.o. and Enea Elektrownia Połaniec S.A. accounted for almost 82% of the total revenue on sales, up by 4 percentage points compared to the corresponding period of 2023.

The LW Bogdanka Group invested nearly PLN 645.3 million, i.e. 63.7% of the planned capital expenditure in 2024. Most funds were allocated to new excavations and the upgrade of existing ones. A total of 16.4 km of corridor excavations were completed in Q1-Q3 2024.

The financial results of the LW Bogdanka S.A. Group for Q3 and for Q1-Q3 2024 are presented in the table below:

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