Record financial and operational performance of Bogdanka for 2021.
LW BOGDANKA S.A. published financial results for 2021. Consolidated revenue for that period amounted to PLN 2,371.3 million, EBITDA – PLN 797.6 million, operating profit – PLN 366.8 million, and net profit – PLN 288.3 million.
The Company has strengthened its already strong market position by achieving, at the end of 2021, a 23.1% share in the market of thermal coal sales and a 29.2% share in the market of thermal coal sales to commercial power plants. Over 90% of our sales generated throughout the year were within Enea Group, including to Enea Wytwarzanie Sp. z o.o. and Enea Elektrownia Połaniec S.A. as well as Grupa Azoty Zakłady Azotowe Puławy S.A.
We introduce a number of technological changes while performing our strategy step by step. We are striving to concentrate our production in one place, which trims down operating expenses. In December 2021 we switched to excavation limited to only two walls, reaching daily net output of above 30,000 tonnes. Before, we needed four walls to achieve a comparable level. We have been pursuing projects to automate our processes to reduce third party services and we have been increasing the utilization rate for our machinery. We have started tens of projects to improve efficiency. They will bring us measurable financial benefits and their effects should already be visible next year,
– said Artur Wasilewski, Vice-President of the Management Board, Economic and Financial Affairs of LW Bogdanka S.A.
In 2021, the LW Bogdanka Group had investment expenditure of PLN 452.8 million. The largest portion of this sum, i.e. PLN 206.3 million, was used for new excavations and modernisation of the existing ones.
2021 saw increased efforts in the area of social responsibility. We became involved in a number of valuable initiatives and introduced our own projects related to CSR and sustainable growth by stimulating the development at the local level, striving to protect the precious environment as well as supporting and promoting both young talent and local leaders in various areas. The Company engages in cooperation on many levels, thus showing openness and consistency in pursuing development of the Lublin region that would be based on modernity but respect the legacy of the mining sector as well as tradition of this part of Poland
– said Adam Partyka, Vice President of the Management Board, Employee and Social Affairs, LW Bogdanka S.A.
The financial results of the LW Bogdanka Group for Q4 and 2021 are presented in the table below:
[PLN `000] | IVQ 2020 | IVQ 2021 | Change | 2020 | 2021 | Change |
|---|---|---|---|---|---|---|
Net revenue on sales | 468 579 | 702 801 | 50,0 % | 1 822 112 | 2 371 280 | 30,1 % |
EBITDA | 148 519 | 259 292 | 74,6 % | 466 167 | 797 601 | 71,1 % |
EBIT | 44 499 | 154 001 | 246,1% | 95 241 | 366 798 | 285,1 % |
Net profit | 38 123 | 123 515 | 224,0% | 72 962 | 288 266 | 295,1 % |
The Company continues to implement innovations, such as Internet of Things, optimisation of energy consumption and lower use of steel. The Company also strives to enhance the comfort of work. Last year, one of our achievements was the introduction of binary ice in air conditioning systems.
We wish to make use of our expertise to extend the scope of the Company's operations to include activities outside of our core business.We have launched a number of initiatives to diversify our operations. Some of the projects will soon be completed, other are at the tender stage, and the remaining ones are being investigated in terms of cost-effectiveness,
– said Dariusz Dumkiewicz, Vice President of the Management Board for Development of LW Bogdanka S.A.
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.