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Lubelski Węgiel
Lubelski Węgiel Bogdanka S.A.

Bogdanka ends 2019 with very good results

Thursday, 2020-03-26


LW BOGDANKA S.A. published consolidated financial results for 2019. Consolidated revenue for that period amounted to PLN 2,157.9 million (increase by 22.8%), EBITDA – PLN 767.6 million (+63.6%), operating profit – PLN 375.2 million (+504.9%), and net profit – PLN 308.7 million (+473.9%).

In Q4 2019 alone, revenue increased year-on-year by 26.3% to reach PLN 531.7 million, and EBITDA increased by 124% making it to PLN 156.2 million. The operating profit amounted to PLN 55.5 million and the net profit was PLN 44.8 million.

In 2019 the Company performed its production plan at a level of 9.45 million tonnes (increase by 4.9%) and sales plan at a level of 9.36 million tonnes (increase by 4.7%). In total 29.1 km of galleries was made, compared to 37 km the year before. In Q4 alone the production reached 2.32 million tonnes (+6.3% compared to Q4 2018). At the end of 2019 the average yield amounted to 64.1%, in comparison to 60.5% the year before.

The Company retains a strong market position achieving, at the end of 2019, the share in the market of thermal coal sales of 20.8%, and the share in the market of thermal coal sales to commercial power plants of 26.8%. As many as 83% of our sales generated throughout the year were performed within the Enea Group, i.e. to Enea Wytwarzanie sp. z o.o. and Enea Elektrownia Połaniec S.A.

In 2019, the LW Bogdanka Group’s CAPEX amounted to PLN 410.4 million. The largest portion of this sum, i.e. PLN 295.4 million, was used for new excavations and modernisation of the existing ones.

We have had a very good year – with a record breaking extraction which, combined with an increase in our contract prices in the previous year as well as a better yield, translated into very good financial results. At the end of last year Bogdanka obtained from the Minister of Climate a mining licence for the extraction of hard coal from the “K-6, K-7”, with the exploitable resources of about 66 million tonnes. This has increased our resource base and allows us to better plan the production in the long term. We plan to begin extraction based on the existing infrastructure in the the Stefanów Field within the next few years -  said Artur Wasil, President of the Management Board LW Bogdanka S.A.

The financial results of the LW Bogdanka Group for Q4 and 2019 are presented in the table below:

 PLN`000 4Q 2018 4Q 2019 Change 2018 2019 Change
Net revenue 421,034 531,749 + 26.3 % 1,756,671 2,157,861 + 22.8 %
EBITDA 69,746 156,246 + 124.0 % 469,191 767,592 + 63.6 %
EBIT - 30,586 55,543 - 62,027 375,222 + 504.9 %
Net profit - 22,217 44,792 - 53,796 308,746 + 473.9 %

We publish our results in the time of concerns as to the ongoing pandemic whose consequences for the economy can hardly be predicted. Currently no interruptions in our production were observed in connection with epidemic-related restrictions. We attentively monitor the situation and have taken an array of actions with a view to minimising any threats for our employees’ and contractors’ safety, thus mitigating the related risk for continuity of our operations. We have implemented relevant procedures at work, increased the availability of protective gear and disinfectants, reduced contacts with the external parties and implemented a number of other actions. Currently, however, it is very difficult to predict how the situation will develop, and what adverse consequences (if any) will be for the Company’s operating activity and its results. We are dedicated to facing all possible challenges of this year effectively. We have at our disposal all tools to do that – as the most efficient coal mine in Poland we generate sound financial results, do not have debts, and our stability is additionally reinforced by the fact of being a part of the Enea Group - added Artur Wasil.

Today is:
15 of August 2022
Name day of:
Marii, napoleona, Stelii
© LW „Bogdanka” S.A. - 2022
Realization: Data Flow sp. z o.o.