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Lubelski Węgiel
Lubelski Węgiel Bogdanka S.A.

LW BOGDANKA SA increases production ans sales in the second quarter

Thursday, 2018-09-13



LW BOGDANKA S.A., the most modern and efficient hard coal mine in Poland, making part of the Enea Group – one of the leaders of the Polish power market, has published financial results for the first half of 2018.

In this period, the consolidated revenue of LW Bogdanka S.A. dropped 5.1% down to PLN 856 million, EBITDA dropped 12.6% down to PLN 278.6 million, profit on operating activities was lower by 47.1% and amounted to PLN 78 million, and the net profit decreased by 40.8% to PLN 66.4 million. The interim results suffered because of the first quarter, in which, due to factors of geological and hydrogeological nature, the Group had recorded lower coal production and sales.

However, in the second quarter alone, the revenues of the Group increased year to year by 4.7% up to PLN 457.3 million, and EBITDA increased by 8.9% up to PLN 151.1 million. In turn, profit on operating activities dropped 14.2% down to PLN 49.5 million, and the net profit was slightly (by 1.6%) lower than in Q2 2017 and amounted to PLN 43.2 million.

In the first half of 2018, the Group maintained a similar year to year level of thermal coal extraction. It amounted to 4.5 million tons and was 0.9% lower than the year before.

Despite a difficult first quarter, the maintaining of a similar year to year production level in the first half of the year indicates that the mine has great technical and organisational potential. It is worth mentioning that at the same time we maintained a high pace of preparatory works for excavation in future periods - in the second quarter we carved out 10.8 km of galleries in comparison to 6.9 km the year before. Due to the above we recorded an increase by as much as 56.5%. Throughout the entire first half of the year the length of the completed excavations increased by 31% - Artur Wasil, President of the Management Board of LW Bogdanka S.A. stated.

The environment is in our favor. We sustain the year-round production and sales plan at a level not lower than 9 million tons, - the President added.  

In Q2 the production of commercial coal in Bogdanka increased by 13.5% up to 2.42 million tons. The sales of coal during this period increased by 4.4% year to year, up to 2.37 million tons. In Q2, the average yield amounted to 62.3%, in comparison to 68.3% the year before.

In the first half of the year, the Group incurred investment expenses amounting to PLN 199.5 million, which is 40.2% of the annual plan (PLN 496 million). The largest portion of this sum, i.e. PLN 164.8 million, was used for new excavations and modernisation of the existing ones. The next item in line that required the most expenditure was the maintenance of the machinery park - the expenses for this cause amounted to PLN 21.8 million.

After the first half of 2018, the share in the thermal coal market in Poland had a level of 18.7% and the share in the supplies of coal to the commercial power plants stood at a level of 24.7%.

Over 82% of sales generated in the first half of the year were executed for Enea Wytwarzanie and Enea Połaniec.

The consolidated financial highlights of the LW Bogdanka Group for Q2 and H1 2018 are presented in the table below:

in PLN million 2Q 2017 2Q 2018 Change 1H 2017 1H 2018 Change
Net revenue 436,9 457,3 4.7% 902,1 856,0 -5.1%
EBITDA 138,8 151,1 8.9% 318,6 278,6 -12.6%
EBIT 57,7 49,5 -14.2% 147,5 78,0 - 47.1%
Net profit 43,9 43,2 -1.6% 112,1 66,4 -40.8%
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01 of June 2020
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© LW „Bogdanka” S.A. - 2018
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