Bogdanka publishes Q3 results
LW Bogdanka S.A. has published its consolidated financial results after the first 3 quarters of 2022. LW Bogdanka Group's revenue for the period was PLN 2,030.1 million. EBITDA reached PLN 676.4 million, operating profit PLN 374.0 million and net profit PLN 310.3 million.
Both production and sales of commercial coal in the period amounted to 7.2 million tons, in Q3 alone, production stood at 1.6 million tons while sales were at 1.9 million tons.
Lower results were mainly influenced by geological problems that occurred in the third quarter. A sudden and unexpected increase in operating pressure occurred in longwall 3/VII/385, resulting in a squeeze. This directly affected both coal production and sales. A recovery plan has been prepared, which is currently being implemented, while first and foremost maintaining the safety of the staff.
- Artur Wasilewski – Acting President of the Management Board of LW Bogdanka S.A., Vice-President of the Management Board, Economic and Financial Affairs.
The total length of roadway excavations completed during the first 9 months of 2022 was approx. 25.2 km. The average yield in the first 3 quarters of 2022 was 69.6%, and in Q3 alone – 61.4% (compared to 68.0% in Q3 2021).
In Q3 2022 Bogdanka maintained its strong market position, achieving a high 29.8% share of coal sales to the commercial power sector. Its share of total steam coal sales was 24.1%.
In the period in question the LW Bogdanka Group incurred capital expenditures of nearly PLN 418.5 million. The largest chunk of this amount, PLN 327.5 million, was spent on new excavations and modernization of existing ones.
The table below portrays the LW Bogdanka Group’s financial results for Q3 and the first 3 quarters of 2022:
[PLN 000s] | IIIQ 2021 | IIIQ 2022 | Change | I-IIIQ 2021 | I-IIIQ 2022 | Change |
|---|---|---|---|---|---|---|
Net revenues on sales | 636 571 | 567 525 | - 10,8% | 1 720 509 | 2 030 114 | 18,0% |
EBITDA | 212 544 | 60 999 | - 71,3% | 552 544 | 676 391 | 22,4% |
EBIT | 100 687 | - 37 942 | - 137,7% | 227 032 | 374 016 | 64,7% |
Net profit/(loss) | 76 701 | -25 777 | - 133,6% | 176 281 | 310 267 | 76,0% |
Lubelski Węgiel Bogdanka S.A. is a leading hard coal producer in Poland that stands apart from its peers in terms of its modern and efficient mining. It is one of the largest Polish hard coal mines. Lubelski Węgiel Bogdanka S.A. chiefly conducts mining operations in terms of hard coal extraction, enrichment and sales. It supplies this raw material mainly to industrial offtakers. Supply contracts are long-term, and the product is sold to the commercial power sector and the industrial power sector.
The company has been listed on the Warsaw Stock Exchange since June of 2009. In August 2022, Lubelski Węgiel Bogdanka S.A. returned to listing on the WIG-ESG Index.
Since October of 2015 Bogdanka has been a member of the Enea Group, the second largest player on Poland’s electrical power market in terms of the generation of electricity, which manages the entire value chain on the electricity market ranging from fuel to the generation of electricity, distribution, sales (supply) and customer service.