Bogdanka’s beginning of the year in line with expectations
Lubelski Węgiel Bogdanka S.A. has published its financial results for the first quarter of 2021 The LW Bogdanka Group’s revenue grew in that period by 17.2% to PLN 543.7 million from PLN 464.1 million a year before. EBITDA was PLN 170.2 million, operating profit – PLN 64.5 million, and net profit – PLN 50.3 million.
The production of commercial coal in the period under discussion amounted to 2.6 million tonnes, and sales – 2.4 million tonnes.
The beginning of the year was characterized by an increased demand for coal, which is why we made every effort to maximize the level of production and sales in the first quarter of 2021. The results we achieved were so good thanks to the intense work of the employees as well as the optimized wall run system and timetable. Although the beginning of the year was optimistic, the Company is going to maintain the production plan for 2021 at the level of about 9 million tonnes.
Artur Wasil – President of the Management Board of Lubelski Węgiel Bogdanka S.A.
In the first quarter of 2021 LW Bogdanka S.A. drilled 5.3 km of roadway excavations. The average yield amounted to 72.3% in comparison to 65.7% the year before.
The Company has maintained its strong market position by increasing its share in the sales of coal to commercial power plants to the level of 27.4%. The share in total thermal coal sales accounted for 22.7%.
About 84% of coal sales (in terms of value) in the first quarter of 2021 were effected between LW Bogdanka S.A. on one side and Enea Wytwarzanie sp. z o.o., Enea Elektrownia Połaniec S.A. and Grupa Azoty Zakłady Azotowe Puławy S.A. on the other.
In the first quarter of 2021, the LW Bogdanka Group’s capex amounted to almost PLN 71.9 million. The largest portion of this sum, i.e. PLN 42 million, was used for new excavations and modernisation of the existing ones.
We are happy with Bogdanka’s results for the first quarter of 2021. The financial results are to the largest extent attributable to a high level of coal production and sales. The production level of 2.6 million tonnes is, historically speaking, the Company’s highest quarterly result. Further, the level of sales, i.e. 2.4 million tonnes, corresponds to the level achieved in the analogous period of 2019 (2.4 million tonnes), which, in terms of results, was a record-breaking period in the Company’s history (EBIDA PLN 222.9 million).
Artur Wasilewski – Vice-President of the Management Board of Lubelski Węgiel Bogdanka S.A.
in PLN '000 | Q1 2020 | Q1 2021 | Change |
|---|---|---|---|
Net revenue on sales | 464 081 | 543 675 | + 17,2% |
EBITDA | 134 807 | 170 221 | + 26,3% |
EBIT | 44 894 | 64 502 | + 43,7% |
Net profit | 33 668 | 50 307 | + 49,4% |
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.