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Lubelski Węgiel
Lubelski Węgiel Bogdanka S.A.

Preliminary results of LW Bogdanka for q1 2018 under pressure of technical difficulties

Friday, 2018-04-13

Bogdanka, 13 April 2018

 

PRESS RELEASE


 

PRELIMINARY RESULTS OF LW BOGDANKA FOR Q1 2018
UNDER PRESSURE OF TECHNICAL DIFFICULTIES

 

LW BOGDANKA S.A., the most modern and efficient  hard coal mine in Poland, making part of the Enea Group - one of the leaders of the Polish power market, has announced published preliminary financial results for the first quarter of 2018. 
 

Separate revenue for this period amounted to PLN 397.9 million, EBITDA – PLN 122.3 million, operating profit – PLN 25.6 million, and net profit – PLN 20.9 million. The results were visibly lower than a year before, when the Company’s sales stood at a level of PLN 463.4 million, EBITDA – PLN 179.82 million, operating profit – PLN 84.5 million, and net profit – PLN 64.1 million. The results were weakened by factors of geological and hydrogeological nature resulting in temporarily lower yield ratio, and in consequence – lower production and sales.

The production of commercial coal in the period between January and March of 2018 was nearly 2.1 million tonnes compared to 2.4 million tonnes in the analogous period of the last year. The sales of coal arrived at 2.0 million tonnes, compared to 2.4 million tonnes a year before.
 

The drop in production and in consequence worse results on the year-on-year basis were caused by factors of geological and hydrogeological nature in one of the walls (problems with retaining the roof and leaking water). As a result the wall efficiency was lower than it would be in normal conditions – we were informed by Artur Wasil, the President of the Management Board of LW Bogdanka S.A.

The problem was temporary. We have overcome the difficulties and in March the production was pursued as per the plan. The backlog of the first quarter will be made up for in further periods. We sustain our declared production plan for the whole 2018 at a level not lower than 9 million tonnes, the President added.


In relation to the abovementioned difficulties from the first three months the yield was 57%, compared to 66.7% a year before in the same period.

On the other hand, the Q1 2018 financial result was positively influenced by a settlement achieved between the Company and the consortium of Mostostal Warszawa and Acciona Infraestructuras. A positive effect of the net result was approx. PLN 25.4 million.

Final results of LW Bogdanka will be presented in a quarterly report to be published on 24 May 2018.

 

For further information please contact:

Magda Kołodziejczyk, M+G
Phone: (+48) 22 416 01 02, (+48) 501 16 88 07
e-mail: magda.kolodziejczyk@mplusg.com.pl  
 


LW BOGDANKA – HIGHLIGHTS

Lubelski Węgiel BOGDANKA S.A. is the most modern and one of the largest hard coal mines in Poland.  In 2017 production of Bogdanka’s commercial coal amounted to about 9 million tonnes.

LW Bogdanka conducts mining activity with respect to extraction, agglomeration and sale of hard coal. The BOGDANKA mine supplies mainly the industrial customers based in the eastern and north-eastern Poland. The market of customers is stable, and the sale is carried out mainly under long-term agreements. LW BOGDANKA’s major commercial coal sales channels are commercial power and industrial power industries.  

The Company’s financial results and hard coal extraction efficiency distinguish the Company from other organisations in the industry. LW Bogdanka S.A. has been listed on the Warsaw Stock Exchange since July 2009. In December of 2017 the Company was qualified by the WSE to a prestigious RESPECT Index rating, already for the ninth time.

Since October 2015, LW Bogdanka S.A. has been part of the Enea Group, one of the leaders of the Polish power market.
 

For further information visit www.bogdanka.eu

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