Bogdanka’s very robust Q1 results
LW Bogdanka S.A. has published its Q1 2022 financial results. The LW Bogdanka Group’s revenue climbed 30.1% in this period to PLN 731.8 million from PLN 562.4 million last year. EBITDA was PLN 276.5 million, operating profit was PLN 179.7 million and net profit was PLN 143.2 million.
EBITDA was PLN 276.5 million, operating profit was PLN 179.7 million and net profit was PLN 143.2 million.
Commercial coal output in the period in question totaled 2.8 million tons with sales of 2.7 million tons.
Every year we plan our output in accordance with our strategy. We do not react emotionally to market swings. In the long-term this could destabilize the Company’s safe, stable and effective functioning. We are maximizing output while aligning it to our capabilities. However, we are not capable of ramping up output from one day to the next to fill the gap left by Russian coal because mining sector investments are long-term in nature. Just as up till now, we plan to continue being a stable supplier of raw material to commercial power plants
- said Artur Wasil, CEO of LW Bogdanka SA.
In Q1 2022 Bogdanka prepared 8.6 km of corridor tunnels. Mining yield was 72.6%, a level similar to last year’s.
The Company has maintained its strong market position. At the end of Q1 2022, it had a 29.2% market share of coal sales to the commercial power sector. Its share of total steam coal sales was 23.9%.
Approximately 77% of the coal sold (by revenue) in Q1 2022 was sold by LW Bogdanka S.A. to Enea Wytwarzanie sp. z o.o., Enea Elektrownia Połaniec S.A. and Grupa Azoty Zakłady Azotowe Puławy S.A.
In Q1 2022 the LW Bogdanka Group incurred capital expenditures of nearly PLN 129.9 million. The largest chunk of this amount, PLN 107.1 million, was spent on new excavations and modernization of existing ones.
The table below portrays the LW Bogdanka Group’s financial results in Q1 2022:
PLN 000s | QI 2021 | QI 2022 | Change |
|---|---|---|---|
Net revenues on sales | 562 429 | 731 768 | + 30,1% |
EBITDA | 175 315 | 276 507 | + 57,7% |
EBIT | 69 596 | 179 651 | + 158,1% |
Net profit | 54 433 | 143 194 | + 163,1% |
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.