Bogdanka’s results in line with expectations
The Management Board of Lubelski Węgiel Bogdanka S.A. has announced the financial and production results of the LW Bogdanka Group for Q1 2024. Sales revenues reached PLN 815.9 million, EBITDA reached PLN 162.5 million, while EBIT reached PLN 48.3 million and net profit reached PLN 42.8 million.
Commercial coal output in the period under review was 1.9 million tons, while sales were 1.8 million tons.
The company's final financial results for Q1 2024 can be assessed positively, despite the challenges posed by the coal sales market. The company increased production and sales of commercial coal in Q1 compared to the corresponding period last year. The recorded financial results were significantly affected by lower coal sales prices and reduced demand for steam coal, both in the domestic and foreign markets. The company retains the ability to respond to the changing market situation on an ongoing basis thanks to advance and ongoing preparation work, which makes it possible to increase production when needed,
- said Artur Wasilewski, Vice-President of the Management Board for Economic and Financial Affairs.
The total length of roadway excavations completed in Q1 2024 was 6.4 m. Reconstruction of excavations was carried out according to the adopted schedules. Mining yield was 64.7%, and was 18.3% higher than in the corresponding period a year ago.
The company has upheld its strong market position. At the end of Q1 2024 it had a 28.8% market share in coal sales to the commercial power sector. Its share of total steam coal sales was 24.1%.
In Q1 2024, over 78% of the coal sold (by revenue) was sold by LW Bogdanka S.A. to Enea Wytwarzanie sp. z o.o. and Enea Elektrownia Połaniec S.A.
In the corresponding period of 2023 the share of the above buyers was approx. 3.0 pp higher.
In Q1 2024 the LW Bogdanka Group incurred capital expenditures of nearly PLN 145.7 million. The largest chunk of this amount, PLN 115.7 million, was spent on new excavations and modernization of existing ones.
The table below portrays the LW Bogdanka Group’s financial results in Q1 2024:
[PLN 000s] | IQ 2023 | IQ 2024 | Change |
|---|---|---|---|
Net revenues on sales | 940,678 | 815,903 | -13.3% |
EBITDA | 291,628 | 126,465 | -44.3% |
EBIT | 155,752 | 48,302 | -69.0% |
Net profit/ (loss) | 126,165 | 42,779 | -66.1% |
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.