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Lubelski Węgiel
Lubelski Węgiel Bogdanka S.A.

LW Bogdanka Capital Group after H1 2016: mining according to the plan, good financial performance

Friday, 2016-08-26

Bogdanka, 26 August 2016

 

PRESS RELEASE



LW Bogdanka Capital Group after H1 2016: mining according to the plan, good financial performance

 

The Capital Group of Lubelski Węgiel Bogdanka in H1 2016 generated sales revenue on the level of over PLN 848.9 mln and net profit in the amount of almost PLN 75 mln. It means that despite further drop in prices, both the revenue and net profit were kept on the level close to the same period of the previous year. EBIT result in the said period amounted to PLN 96.6 mln (drop by 4.7 per cent yoy) and EBITDA: PLN 277.4 mln (drop by 4.9 per cent).


The company estimates the generated financial results as good. Their generation, despite a negative impact of the unstable situation on the market and persistent low coal prices was possible due to a constant cost control and optimisation of capital expenditures. In result, EBITDA profitability in H1 2016 was maintained on an over average level for the global industry, namely 32.7 per cent.

In H1 2016 the production of commercial coal reached the level of 4.3 mln tonnes, and sales of 4.4 mln tonnes. The length of corridor excavations performed in that period amounted to 12.1 km, which means a growth by 18.6 per cent as compared to H1 2015.

The company maintains a strong market position and in Q2 2016 returned to the share in steam coal sales market to commercial power industry achieved in 2014 on the level of ca. 25 per cent. Similarly, the total share of the steam coal market achieved again the level of ca. 16 per cent. According to the earlier announcements, the Company estimates coal sales in 2016 ranging from 8.5 to 9.0 mln tonnes.

 

 

- I estimate the financial results generated in H1 2016 as good. Their generation in extremely unfavourable market conditions was possible due to a continuous and consistent cost control and optimisation of capital expenditures. We are upholding a safe financial liquidity and remain the most efficient and modern bituminous coal mine in Poland. Even though in the second quarter coal price increases were observable on international markets, the prices of this material in Poland remain on a very low level and oversupply on the coal market is persistent. Therefore, at the moment we cannot yet see grounds for expecting any change in the present market trends in a close perspective. According to the earlier announcements, we estimate our annual coal sales on the level of 8.5-9.0 mln tonnes - said Krzysztof Szlaga, the president of Lubelski Węgiel Bogdanka
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