Nearly pln 3.7 billion revenue and a solid EBITDA in 2024
Lubelski Węgiel Bogdanka S.A., one of the leading hard coal producers in Poland, generated consolidated sales revenue of nearly PLN 3.7 billion in 2024, despite a lower demand for coal and a decline in prices of this raw material. The Group generated a solid EBITDA of PLN 981.1 million and its liquidity position remained stable.
The operating result at a level of PLN 1.86 billion and the net loss of -PLN 1.49 billion resulted mainly from write-downs on the impairment losses of the carrying value of non-current assets, in the total amount of PLN 2.42 billion
These write-downs did not affect the Company's EBITDA or liquidity. The operating result excluding the write-down amounted to PLN 568.6 million and the net profit, to PLN 471.8 million.
In Q4 2024 alone, consolidated sales revenues amounted to PLN 1.06 billion. EBITDA stood at PLN 441.8 million.
2024 was a period of significant organisational changes addressing the activities related to the further optimisation of operational processes which strengthen our ability to adapt to changing market conditions, the dynamics of which have significantly accelerated in recent years. Despite a difficult regulatory environment and a decline in coal demand, we fulfilled our production plan at the assumed level of almost 8.0 million tonnes, which means an increase in production of approximately 12% YoY. Revenues reached almost PLN 3.7 billion and EBITDA was close to PLN 1.0 billion. The ongoing and projected changes in the broadly defined energy market in Poland, following impairment tests of property, plant and equipment, prompted the Company to adjust their value by a total amount of approximately PLN 2.4 billion. The value of this adjustment had a direct impact on EBIT and net results but does not affect the liquidity position of the Company, while after its exclusion, the net profit amounted to PLN 471.8 million. We are strengthening our operating efficiency and cost flexibility, which translates into increased resilience of the Company to external factors. We will publish an update of the strategy soon. Our goal is to continue our stable operation in a dynamic environment and to prepare for the challenges of the coming years – both in operational and structural terms
– says Artur Wasilewski, Vice-President of the Management Board for Economic and Financial Affairs.
Production and sales
In 2024, LW Bogdanka sold almost 8.1 million tonnes of commercial coal, 21% more compared to the previous year. This allowed for partial compensation of the decline in coal prices and mitigated the financial pressure resulting from the difficult market conditions. The Company maintained its strong market position, achieving a 33.2% share of coal supplies to the commercial power industry in Poland.
LW Bogdanka's commercial coal production reached almost 7.9 million tonnes, up by 843 thousand tonnes (+12%) compared to 2023. In the same period, output increased to 65.5%, which means an improvement of 5.4 percentage points.
Coal sales to Enea Wytwarzanie sp. z o.o. and Enea Elektrownia Połaniec S.A. accounted for nearly 82% of total revenue on sales. In 2023, the share of LW Bogdanka's two key customers was approximately 3 percentage points higher.
Investments
In 2024, the LW Bogdanka Group has earmarked a total of PLN 870.8 million for investments. More than 87% of this expenditure was allocated for the development of new pits and the purchase and maintenance of equipment necessary for mining operations. In 2024, the total length of the new pits will reach 21.8 km.
Financial results
In 2024, consolidated revenues on sales amounted to almost PLN 3.7 billion, down by 7% compared to the previous year. The Group's EBITDA decreased by 27.1% YoY, remaining at a strong level of PLN 981.1 million. Its liquidity position was also stable. EBIT and net results in 2024 were significantly affected by the write-downs on the impairment losses of the carrying value of non-current assets in the total amount of PLN 2.42 billion. As a result, the operating result reached approximately - PLN 1.86 billion and the net result, - PLN 1.49 billion. The operating result for 2024, after clearing the impact of the write-down, amounted to PLN 568.6 million and the net profit reached PLN 471.8 million.
Key financial data (in PLN thousand).
| Q4 2023 | Q4 2024 | Change | 2023 | 2024 | Change |
|---|---|---|---|---|---|---|
Net revenue on sales | 1,250,523 | 1,064,944 | 14.8% | 3,939,288 | 3,665,056 | -7.0% |
EBITDA | 671,755 | 441,799 | -34.2% | 1,345,175 | 981,108 | -27.1% |
EBIT | 530,867 | -910,033 | -271.4% | 839,841 | -1,855,031 | -320.9% |
Net result | 430,447 | -735,200 | 270.8% | 687,144 | -1,491,348 | - 317.0% |
Net result | 430,447 | 276,877 | 35.7% | 687,144 | 471,828 | -31.3% |
For further information, please contact:
Marcin Kujawiak, Lubelski Węgiel "Bogdanka" S.A.
phone 667 45 02 94
e-mail: mkujawiak@lw.com.pl
Magda Kolodziejczyk, M+G
phone 22 416 01 02, 501 16 88 07
e-mail: magda.kolodziejczyk@mplusg.com.pl
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.