25 January 2010 --- Polish Press Agency – Results of Bogdanka
Financial results of Bogdanka worse in 2010 y-o-y, but in 2011 they will be better (interview)
“The results of Bogdanka in 2010 will be worse than in 2009 due to an increase in costs, but in 2011, thanks to an increase in coal extraction by 2 million tonnes, the results will improve both in relation to 2009 and 2010”, announced Mirosław Taras, President of Bogdanka’s Management Board in an interview for the Polish Press Agency.
“In 2010, the result will be lower than in 2009. With the same sale volume as in 2009 (5.3 million tonnes of coal), the cost side will increase and the result will drop", Taras told the Polish Press Agency.
The President of the Management Board explained that the costs would increase due to a rise in employment.
“We have to hire and train new people for the new field. Our target is to employ 4,300 persons by 2014. When we entered the stock exchange we had 3,600 employees”, said Taras.
“Additionally, in preparation for the future extraction, we are establishing underground pits, which are costly. Then depreciation comes on top of that, however in 2010 only to a small extent”, he added.
The President of the Management Board announced that in 2011 the results of Bogdanka would be better both in relation to 2009 and 2010.
“In 2011, we will extract additional 2 million tonnes of coal, which will translate into an increase in revenue and decrease in the unit cost of output. Net and operating results will be then better than in 2009 and 2010”, said Taras.
2011 will, in turn, be more difficult in terms of cash flow.
“In 2011, we will be paying for the biggest investments initiated in 2010: construction of a flyover and construction of a mechanical coal processing plant, and for underground work. We will have to contract loans because in 2010 we will practically spend the money from the stock exchange”, said Taras.
The President of the Management Board announced that Bogdanka would slightly exceed the result forecasts for 2009. They assumed revenue in the amount of PLN 1.14 billion, PLN 222.5 million of operating profit and PLN 178 million of net profit.
“Probably we will slightly exceed the forecast for 2009 at the net and operating level. We kept an eye on the costs”, said Taras.
The President of the Management Board expects that a potential increase in prices of coal on the Polish market may take place not sooner than in the middle of the year.
“If there is any increase in coal prices on the Polish market, it will be in the second part of the year, provided that power stations agree to the increase. I would expect an increase in prices up to 5%", said Taras.
25 January 2010, Anna Pełka (Polish Press Agency)
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“The results of Bogdanka in 2010 will be worse than in 2009 due to an increase in costs, but in 2011, thanks to an increase in coal extraction by 2 million tonnes, the results will improve both in relation to 2009 and 2010”, announced Mirosław Taras, President of Bogdanka’s Management Board in an interview for the Polish Press Agency.
“In 2010, the result will be lower than in 2009. With the same sale volume as in 2009 (5.3 million tonnes of coal), the cost side will increase and the result will drop", Taras told the Polish Press Agency.
The President of the Management Board explained that the costs would increase due to a rise in employment.
“We have to hire and train new people for the new field. Our target is to employ 4,300 persons by 2014. When we entered the stock exchange we had 3,600 employees”, said Taras.
“Additionally, in preparation for the future extraction, we are establishing underground pits, which are costly. Then depreciation comes on top of that, however in 2010 only to a small extent”, he added.
The President of the Management Board announced that in 2011 the results of Bogdanka would be better both in relation to 2009 and 2010.
“In 2011, we will extract additional 2 million tonnes of coal, which will translate into an increase in revenue and decrease in the unit cost of output. Net and operating results will be then better than in 2009 and 2010”, said Taras.
2011 will, in turn, be more difficult in terms of cash flow.
“In 2011, we will be paying for the biggest investments initiated in 2010: construction of a flyover and construction of a mechanical coal processing plant, and for underground work. We will have to contract loans because in 2010 we will practically spend the money from the stock exchange”, said Taras.
The President of the Management Board announced that Bogdanka would slightly exceed the result forecasts for 2009. They assumed revenue in the amount of PLN 1.14 billion, PLN 222.5 million of operating profit and PLN 178 million of net profit.
“Probably we will slightly exceed the forecast for 2009 at the net and operating level. We kept an eye on the costs”, said Taras.
The President of the Management Board expects that a potential increase in prices of coal on the Polish market may take place not sooner than in the middle of the year.
“If there is any increase in coal prices on the Polish market, it will be in the second part of the year, provided that power stations agree to the increase. I would expect an increase in prices up to 5%", said Taras.
25 January 2010, Anna Pełka (Polish Press Agency)