Bogdanka’s robust Q1 results
LW Bogdanka S.A. has published its Q1 2023 financial results. The LW Bogdanka Group’s revenue climbed 28.5% in this period to PLN 940.7 million from PLN 731.8 million last year. EBITDA was PLN 291.6 million (up by 5.5%), operating profit was PLN 155.8 million and net profit was PLN 126.2 million.
We are pleased with the good financial result of this quarter. In order to remain the most efficient mine in Poland, we are prudent about managing all our business processes. We believe that the financial results of this quarter allow us to look with optimism and calmness at the prospect of the next months of this year.
said Kasjan Wyligała, President of the Management Board of Lubelski Węgiel Bogdanka S.A.
Production of commercial coal in the period in question amounted to 1.6 million tons, with sales also at 1.6 million tons. In Q1 2023the Company achieved a mining yield of 54.7%, and completed 8.5 km of roadway excavations.
The good results generated by the Group in Q1 2023 were achieved under the pressure of an event that occurred in Q3 2022 - a squeeze of longwall 3/VII/385. The event resulted in a decrease in production and sales of commercial coal. The market environment, i.e.: a significant increase in the prices of materials, external services and electricity, along with expectations of rising wages, also had an impact on our operations. All of these factors were mitigated by a higher selling price, resulting in an EBITDA of more than PLN 290 million, more than 5% higher than in the corresponding period of last year.
said Artur Wasilewski, Vice-President of the Management Board for Economic and Financial Affairs at Lubelski Węgiel S.A.
We are consistently implementing the planned investment tasks. Our first 3MW photovoltaic farm located in close proximity to Bogdanka is nearing completion. Sales revenues in Q1 increased by nearly 29% compared to the corresponding period of last year. We achieved this effect thanks to higher contract prices from the sale of commercial coal.
said Dariusz Dumkiewicz, Vice-President of the Management Board for Sales and Investments at Lubelski Węgiel Bogdanka S.A.
In February, we started to mine a highly efficient coal-cutting longwall in the Stefanów Field. We are currently mining two longwalls in Bogdanka. As a result, the Company upholds the production plan adopted for 2023 at approx. 8.3 million tons
added Adam Partyka, Vice-President of the Management Board for Labor and Social Affairs.
The Company has upheld its strong market position. At the end of Q1 2023 it had a 22.6% market share in coal sales to the commercial power sector. Its share of total steam coal sales was 17.7%.
Nearly 88% of coal sales (in value terms) during Q1 2023 were between LW Bogdanka S.A. and Enea Wytwarzanie sp. z o.o., Enea Elektrownia Połaniec S.A. and Grupa Azoty Zakłady Azotowe Puławy S.A. In the corresponding period of 2022 the share of the above buyers was approx. 12 p.p. lower.
In Q1 2023 the LW Bogdanka Group incurred capital expenditures of PLN 159.9 million. The largest chunk of this amount, PLN 123.0 million, was spent on new excavations and modernization of existing ones.
The table below portrays the LW Bogdanka Group’s financial results in Q1 2023:
[PLN 000`s] | Q1 2022 | Q1 2023 | Zmiana |
|---|---|---|---|
Net revenues on sales | 731,768 | 940,678 | + 28.5% |
EBITDA | 276,507 | 291,628 | +5.5% |
EBIT | 179,651 | 155,752 | -13.3% |
Net profit | 143,194 | 126,165 | -11.9% |
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.