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Lubelski Węgiel
Lubelski Węgiel Bogdanka S.A.

Bogdanka after the first quarter of 2020: lower extraction but high yield

Friday, 2020-05-22

LW BOGDANKA S.A. published financial results for Q1 2020. Consolidated revenue for that period amounted to PLN 464.1 million, EBITDA – PLN 134.8 million, operating profit – PLN 44.9 million, and net profit – PLN 33.7 million.

In Q1 2020 the Company performed its production plan at a level of 2.1 million tonnes (compared to 2.5 million tonnes the year before) and sales plan at a level of 1.9 million tonnes (2.4 million tonnes in Q1 2020). In Q1, the average yield amounted to the high level of 65.7%, in comparison to 64.7% the year before.

The Company’s results in Q1 2020 are primarily a consequence of adjusting production to the reduced demand for coal from our customers due to a warm and windy winter. It is worth emphasising that last year’s comparability base was very high, as in Q1 2019 the results were shaped by several favourable factors, including the record-breaking output in January 2019. The developing epidemic of SARS-Cov-2 coronavirus causing the COVID-19 disease did not materially affect our operations in Q1 2020, said - said Artur Wasil, President of the Management Board of LW BOGDANKA SA

The Company retains its strong market position achieving at the end of the first quarter the share in the market of thermal coal sales of 20.6%, and the share in the market of thermal coal sales to commercial power plants of 25.8%. 83% of our sales in Q1 were performed within the Enea Group, i.e. to Enea Wytwarzanie sp. z o.o. and Enea Elektrownia Połaniec S.A.

In Q1, the Company completed 6.7 kilometres of galleries compared to 7.9 kilometres the year before, which met the Company’s assumptions. In the previous quarter, the LW BOGDANKA Group had investment expenditure of PLN 266.3 million. The largest portion of this sum, nearly PLN 166 million, was used for the purchase of new longwall systems. Nearly PLN 73 million were used for new excavations and modernisation of the existing ones.

Financial results of the LW Bogdanka Group for Q1 2020 are presented in the table below:

PLN` 000 QI 2020 Q1 2019 Change QI 2018
Net revenue 464,081 540,787 - 14.2% 398,697
EBITDA 134,807 222,860 -39.5% 127,476
EBIT 44,894 127,966 -64.9% 28,509
Net profit 33,668 109,969 -69.4% 23,169

Currently, similarly to the whole economy, we function in the shadow of the coronavirus pandemic and do our best to mitigate its impact on our operations. We have quickly addressed the situation by implementing a number of procedures and protective measures, thanks to which we have thus far not observed instances of disease among our employees. At the same time we have maintained the continuity of operations in all areas. It is very difficult to predict how the situation will develop, and what adverse consequences (if any) will be for the Company’s operating activity and its results. We focus on providing a high level of security while maintaining the continuity of extraction and preparatory works. We hope the situation will gradually stabilize but we are also prepared to face the possible challenges of this year by making use of our advantages: the highest efficiency of extraction among the Polish coal mines, solid financial results reached over the years, lack of debts, and making part of the Enea Group - added Artur Wasil.

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Calendar
Today is:
27 of November 2020
Name day of:
Franciszka, Kseni, Maksymiliana
© LW „Bogdanka” S.A. - 2018
Realization: Data Flow sp. z o.o.