Very good operating results – increased production and sales
Lubelski Węgiel Bogdanka S.A. published consolidated financial results for the first half of 2021. Consolidated revenue for that period amounted to PLN 1,046.6 million (increase by 23.3%), EBITDA – PLN 329.8 million (+49.2%), operating profit was PLN 116.2 million (+132.9%), and net profit totalled PLN 91.4 million (+149.1%).
Company’s financial results for the first half of 2021 were mainly influenced by increased sale and production of coal as compared to 2020.
The first half of the year was characterized by increased demand for coal due to cool winter and revival in the market stemming from post-pandemic recovery of the economy.Therefore, optimizing wall run system and timetable became our priority. Intense work of the entire staff made this possible
said Artur Wasil, President of the Management Board of Lubelski Węgiel Bogdanka S.A.
In H1 2021, Bogdanka built 10.4 km of galleries. Production of commercial coal in the first six months of the year amounted to over 4.9 million tonnes, which is 33.8% more year-on-year (in Q2 alone, production amounted to nearly 2.3 million tonnes). Coal sales in the period reached 4.6 million tonnes, hence represented an increase of 30.3% compared with the previous year (2.2 million tonnes of coal were sold in Q2 alone). In the first six months of 2021, the average yield amounted to 71.6%, in comparison to 66.8% in 2020, and in Q2 2021 alone it reached 70.8% (compared to 68.4% in Q2 2020).
EBITDA was significantly higher both in the second quarter and in the first half of 2021 than in the analogous periods of 2020. Better EBITDA is mainly a result of increased sale of coal and low base from 2020
- announced Artur Wasilewski, Vice-President of the Management Board of Lubelski Węgiel Bogdanka S.A., responsible for Economic and Financial Affairs.
Bogdanka retained its market position in the first half of 2021, reaching a high share of more than 28% in the sales of coal to commercial power plants. The share in total power coal sales accounted for 22.4%.
As assumed in the strategy announced at the end of the previous year, we search for new sales markets for our coal, knowing that demand in Poland will be decreasing in years to come.Bearing this in mind, we have established a relationship with Ukrainian entities, this is where we anticipate the prospect of further cooperation
- explained Dariusz Dumkiewicz, Vice-President of the Management Board of Lubelski Węgiel Bogdanka S.A., responsible for Development.
In the discussed period, the LW Bogdanka Group had investment expenditure of over PLN 137 million. The largest portion of this sum, nearly PLN 82.5 million, was used for new excavations and modernisation of the existing ones.
We continue to monitor and address the Company’s situation related to Covid-19 on a day-to-day basis.Consistent actions taken by the crisis management centre as well as responsible approach demonstrated by our employees allow us to maintain production as planned
- said Adam Partyka, Vice-President of the Management Board of Lubelski Węgiel Bogdanka S.A., responsible for Employee and Social Affairs.
in PLN '000 | H1 2020 | H1 2021 | Change |
|---|---|---|---|
Net revenue on sales | 849 011 | 1 046 591 | + 23,3% |
EBITDA | 221 108 | 329 849 | + 49,2% |
EBIT | 49 900 | 116 194 | + 132,9% |
Net profit | 36 669 | 91 358 | + 149,1% |
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.