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Lubelski Węgiel
Lubelski Węgiel Bogdanka S.A.

Financial forecast for 2010 – the Company’s historical records

Friday, 2010-10-01
Lubelski Węgiel BOGDANKA S.A., a leader of the Polish market for power coal producers and one of the largest and most advanced hard coal mines in Poland, forecasts that in 2010 the Group shall achieve much better results than previously expected.
The LW BOGDANKA Group predicts revenue on sales at a level of PLN 1,228 million (9.8% more as compared to the previous year), operating profit in the amount of PLN 242 million (6.7% more as compared to the previous year) and net profit in the amount of PLN 201 million (5.3% more than in 2009). The Company plans net commercial coal extraction at the level of nearly 9% higher than that in the previous year. The predicted results will be record-breaking in the LW BOGDANKA Group’s history.
The forecast is an effect of the analysis of technical results and economic and financial results achieved by the Group within the period of the first eight months of 2010. It is confirmed by the prospects made by the Company for the remaining months of this year.

FINANCIAL FORECAST - DETAILS
PLN '000
Forecast 2010
Results 2009
Dynamics (%)
Sales revenue
1.228.000
1.118.393
109,8
EBITDA391.000
367.988
106,3
Operating profit242.000
226.710
106,7
Net profit201.000
190.842
105,3


Record results predicted by the Group are the effect of achieving greater commercial coal production with gross extraction at the level equal to that in the previous year. It has been achieved due to application of longwall coal ploughing technology in the exploration of thin coal layers. Thus, the amount of waste rock in the output hauled to the surface has been reduced. The Company has also been improving its efficiency by means of development of the solutions for initial separation of waste rock from the material underground. The predicted increase in coal sales as compared to 2009 will increase revenue up to the amount of PLN 1,228 million as well as operating profit and net profit.

The main source of revenue on sales of LW BOGDANKA Group is production and sale of power coal. Most of the realised coal sales are carried out on the basis of long-term commercial agreements with the Group’s regular key customers: Elektrownia Kozienice S.A., GDF Suez Energia S.A. (the former Elektrownia Połaniec S.A.), Elektrownia Ostrołęka S.A. and Cementownia Ożarów.

The Group performs ongoing monitoring of its financial results and capabilities of meeting the published financial forecasts. Any changes exceeding by at least 10% of the above financial results shall be published in appropriate current reports.
Assessments of the Company’s capability of meeting the forecasts for the financial results shall be carried out in the periodic reports.

“The results that we are anticipating at the end of the year exceed our expectations. Out of respect for our investors, we adopt a conservative approach at forecasting the Company’s ratios. Mining is such an industry in which efficiency depends not only on the structure of expenses and market performance, but also on specific factors, e.g. geological, technological and technical. In our case, all of the above parameters have been favourable. I am glad that the Company’s investment decisions, including the application of longwall coal ploughing technology, have brought such impressive effects for our shareholders. The historical result that we forecast – net profit amounting to PLN 201 million – is the confirmation of our restless struggle for improving Company’s efficiency,” says MirosławTaras, President of the Management Board of LW Bogdanka S.A.


For more information, contact:
Tomasz Zięba
Press Spokesman of LW Bogdanka S.A.
Tel. (81) 462 56 04
email: tzieba@lw.com.pl

(on the basis of materials prepared by the Investors Relations and Stock Exchange Information Section, submitted by Promotion and Advertisement Department)


Press release is available below in PDF format


 
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