Very good operating and financial results, increased production and sales
Consolidated revenue for that period amounted to PLN 1,098.3 million (increase by 28.3%), EBITDA – PLN 434.4 million (+55.9%), operating profit – PLN 241.8 million (+209.9%), and net profit – PLN 197.9 million (+198.3%).
LW BOGDANKA S.A., the most modern and effective hard coal mine in Poland, making part of the Enea Group – one of the leaders in the Polish power market, has announced consolidated financial results for the first half of 2019. Consolidated revenue for that period amounted to PLN 1,098.3 million (increase by 28.3%), EBITDA – PLN 434.4 million (+55.9%), operating profit – PLN 241.8 million (+209.9%), and net profit – PLN 197.9 million (+198.3%).
In Q2 2019 alone, revenues increased y-o-y by 21.9% to reach PLN 557.5 million, and EBITDA increased by 40.0% making it to PLN 211.6 million. Furthermore, profit on operating activities increased by 129.9% to achieve PLN 113.8 million, and net profit was 103.7% higher than in Q2 2018 and amounted to PLN 88 million.
The Company’s results for the first half of 2019 were infuenced by increased production, sales, and coal prices.
Bogdanka built 14.2 km of galleries in the first six months of 2019, of which 6.4 km were built in Q2 2019 alone. Production of commercial coal in the first six months of the year amounted to 4.8 million tonnes, which is 6.8 % more year-on-year (in Q2 alone, production amounted to nearly 2.3 tonnes). Coal sales in the first half of the year reached corresponding amounts (almost 4.8 million tonnes), hence represented an increase of about 9.9% compared with the previous year (2.4 million tonnes in Q2 alone). In the first six months of 2019, the average yield amounted to 65.1%, in comparison to 59.6% the year before, and it amounted to 65.6% in Q2 2019 alone (compared to 62.3% in Q2 2018).
LW Bogdanka S.A. also strengthened its market position in the first half of 2019 reaching a high 28% share in the sales of coal to commercial power plants. The share in total power coal sales accounted for 21.6%.
In the discussed period, the LW BOGDANKA Group had investment expenditure of PLN 167 million. The largest portion of this sum, nearly PLN 125 million, was used for new excavations and modernisation of existing ones.
Financial and operating results of LW Bogdanka achieved after the first half of this year are, in my opinion, very good. Consistent implementation of production and sales plans made it possible to obtain such results. The increase of prices in our contracts, which took place this January, also played a part in this success.
As announced before, we are implementing our plan of increasing production to 9.4 million tonnes this year. Our priority remains to work continuously on costs and operational excellence, in addition to preparing ourselves to make the Ostrów deposit available
– said Artur Wasil – President of the Management Board of LW Bogdanka S.A.
in PLN million | 2Q 2018 | 2Q 2019 | Change | 1H 2018 | 1H 2019 | Change |
|---|---|---|---|---|---|---|
Net revenue | 457,3 | 557,5 | + 21,9 % | 856,0 | 1 098,3 | + 28,3 % |
| EBITDA | 151,1 | 211,6 | + 40,0 % | 278,6 | 434,4 | + 55,9 % |
| EBIT | 49,5 | 113,8 | + 129,9 % | 78,0 | 241,8 | + 209,9 % |
Net profit | 43,2 | 88,0 | + 103,7 % | 66,4 | 197,9 | + 198,3 % |
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.