Financial and operational performance of Bogdanka for the third quarter of 2021 meets the expectations
Lubelski Węgiel Bogdanka S.A. published consolidated financial results for three quarters of 2021. Consolidated revenue for that period amounted to PLN 1,668.5 million, EBITDA – PLN 538.3 million, operating profit – PLN 212.8 million, and net profit – PLN 164.8 million.
In Q3 2021 alone, sales revenue amounted to PLN 621.9 million, and EBITDA to PLN 208.5 million. The operating profit amounted to PLN 96.6 million and the net profit was PLN 73.4 million.
After 3Qs of 2021, Bogdanka built 15.4 km of galleries. Production of commercial coal after the first nine months of the year amounted to 7.5 million tonnes (in Q3 alone, production amounted to 2.6 tonnes). Coal sales after 3Qs of the year reached 7.2 million tonnes, hence represented an increase of about 27.1% compared with the previous year (2.7 million tonnes in Q3). Average yield for three quarters of 2021 amounted to 70.3%, in comparison to 64.5% the year before, and in Q3 2021 alone it amounted to 68% (compared to 60.2% in Q3 2020).
LW Bogdanka S.A. also strengthened its market position reaching a high 29.2% share in the sales of coal to commercial power plants. The share in total power coal sales accounted for 23%. Approximately 87% of sales generated in the three quarters were performed to Enea Wytwarzanie and Enea Elektrownia Połaniec as well as the Azoty Zakłady Azotowe Puławy S.A. Group.
In the third quarter we observed an ongoing trend of increased demand for coal from the commercial power plants and the heat sector. Reaching those results, which are similar to performance in 2019, was made possible thanks to the intense work of employees and consistent pursuance of production assumptions. We wish to make full use of the economy and ensure stable coal supplies to our customers. Reaching the assumed production plan at the level of 9.6 million tonnes at the end of the year is in no way jeopardized
- said Artur Wasil, President of the Management Board of Lubelski Węgiel Bogdanka S.A.
In three quarters of 2021, the LW Bogdanka Group’s capex approached to PLN 210.3 million. The largest portion of this sum, i.e. almost PLN 133.8 million, was used for new excavations and modernisation of the existing ones.
The financial results of the LW Bogdanka Group for Q3 2021 and 3Qs 2021 are presented in the table below:
[PLN ‘000] | 3Q 2020 | 3Q 2021 | Change | 1-3Q 2020 | 1-3Q 2021 | Change |
|---|---|---|---|---|---|---|
Net revenue on sales | 504 522 | 621 888 | +23,3% | 1 353 533 | 1 668 479 | +23,3% |
EBITDA | 96 540 | 208 460 | +115,9% | 317 648 | 538 309 | +69,5% |
EBIT | 842 | 96 603 | +11 373,0% | 50 742 | 212 797 | +319,4% |
Net profit (loss) | -1 830 | 73 393 | - | 34 839 | 164 751 | +372,9% |
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.