Difficult yet good year for Bogdanka
LW BOGDANKA S.A. published financial results for 2020. Consolidated revenue for that period amounted to PLN 1,822.1 million, EBITDA – PLN 466.2 million, operating profit – PLN 102.6 million, and net profit – PLN 73 million.
In Q4 2020 alone, sales revenue amounted to PLN 468.6 million, and EBITDA to PLN 148.5 million. Operating profit totalled PLN 51.9 million and net profit was PLN 38.1 million.
In 2020 the Company performed its production plan at the level of 7.6 million tonnes and sales plan at the level of 7.7 million tonnes. In total 25.7 km of galleries were made. In Q4 alone production reached the level of 2.1 million tonnes. At the end of 2020 average yield amounted to 64.0%, in comparison to 64.1% the year before.
It was a challenging year, not only for Bogdanka, but for the whole economy, which was clearly affected by the slowdown caused by the restrictions introduced as a response to the coronavirus pandemic. Despite these difficulties, the year proved good for the company. In the second half of 2020 we initiated the exploitation of a longwall with a record-breaking seven-kilometre-long face. We have been preparing for these exploitations for several years, by completing works on galleries and developing digital tools. At the end of the year we announced the new Development Strategy of LW Bogdanka S.A., which allows us to look optimistically towards future.
– said Artur Wasil – President of the Management Board of LW Bogdanka S.A.
The Company has retained its strong market position by achieving, at the end of 2020, the share in the market of thermal coal sales of 19.7% and the share in the market of thermal coal sales to commercial power plants of 25.3%. As much as 84% of our sales generated throughout the year were performed within the Enea Group, i.a. to Enea Wytwarzanie Sp. z o.o. and Enea Elektrownia Połaniec S.A.
The fallout of the coronavirus pandemic is evident in the company’s final financial results. However, flexible responses to changing demand and supply conditions as well as taking a number of optimizing actions allowed us to maintain the lowest expenses in the industry. It is partly due to this that we achieved satisfactory results in the demanding social and economic environment.
– said Artur Wasilewski, Vice-President of the Management Board of LW Bogdanka S.A., Economic and Financial Affairs.
In 2020, the LW Bogdanka had investment expenditure of PLN 606.7 million. The largest portion of this sum, i.e. PLN 285.3 million, was used for new excavations and modernisation of the existing ones.
During the pandemic, the Company once more proved to be a responsible social partner. Last year the Company donated PLN 800,000 to actions related to counteracting Covid-19 alone – these funds were provided to hospitals and health care institutions. Additionally, we also supported cultural and sports organisations. We have remained the pillar of the Lublin region, a socially responsible company.
– said Adam Partyka, Vice-President of the Management Board of LW Bogdanka S.A., Employee and Social Affairs.
[w tys PLN]
|IVQ 2019||IVQ 2020|
Net revenue on sales
|531 018||467 587||-11,9%||2 154 509||1 818 543|
|154 552||145 499||-5,9%||752 135||449 913|
|56 345||44 013||-21,9%||369 520||89 684|
|45 855||38 035||-17,1%||306 184||70 050|
The Company’s new Strategy, presented at the end of 2020, is a response to market expectations and challenges posed by Poland’s 2040 Energy Policy.It is primarily focused on maintaining production capacity, high profitability ratios, respect for the environment as well as maintaining the position of an economic pillar of the region. Diversification of revenue through an extension of the areas of business activity as well as identification, recognition and documentation of new coking coal (type 35) resources should allow the Company to continue to develop even in a difficult economic environment and retain the position of a stable employer in the Lublin region.
– said Dariusz Dumkiewicz, Vice-President of the Management Board of LW Bogdanka S.A., Development.
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.