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Lubelski Węgiel
Lubelski Węgiel Bogdanka S.A.

Record financial and operational performance of Bogdanka for 2021.

Monday, 2022-03-28

RECORD INANCIAL AND OPERATIONAL PERFORMANCE OF BOGDANKA FOR 2021.
 

LW BOGDANKA S.A. published financial results for 2021. Consolidated revenue for that period amounted to PLN 2,371.3 million, EBITDA – PLN 797.6 million, operating profit – PLN 366.8 million, and net profit – PLN 288.3 million.

In Q4 2021 alone, sales revenue amounted to PLN 702.8 million, and EBITDA to PLN 259.3 million. Operating profit amounted to PLN 154.0 million and net profit was PLN 123.5 million.

In 2021 the Company performed its production plan at the level of 9.9 million tonnes and sales plan at the level of 10.0 million tonnes. In total 23.2 km of galleries were made. In Q4 alone production reached the level of 2.4 million tonnes. At the end of 2021 average yield amounted to 69.4%, in comparison to 64.0% the year before.
 

2021 saw consistent implementation of our development strategy, which resulted in record results for LW Bogdanka. It was made possible thanks to prospective planning of preparatory works and their execution in 2020. Production at the level on 9.9 million tonnes of coal and sales amounting to 10 million tonnes of coal are our response to challenges posed by the market. We have made the best possible use of the Company’s production capacity, largely thanks to our engineers, design teams and employees solving issues with longwalls exploitations but also a result of the commitment of employees working directly on extraction said Artur Wasil, President of the Management Board of LW Bogdanka S.A.

The Company has strengthened its already strong market position by achieving, at the end of 2021, a 23.1% share in the market of thermal coal sales and a 29.2% share in the market of thermal coal sales to commercial power plants. Over 90% of our sales generated throughout the year were within Enea Group, including to Enea Wytwarzanie Sp. z o.o. and Enea Elektrownia Połaniec S.A. as well as Grupa Azoty Zakłady Azotowe Puławy S.A.

We introduce a number of technological changes while performing our strategy step by step. We are striving to concentrate our production in one place, which trims down operating expenses. In December 2021 we switched to excavation limited to only two walls, reaching daily net output of above 30,000 tonnes. Before, we needed four walls to achieve a comparable level. We have been pursuing projects to automate our processes to reduce third party services and we have been increasing the utilization rate for our machinery. We have started tens of projects to improve efficiency. They will bring us measurable financial benefits and their effects should already be visible next year,  – said Artur Wasilewski, Vice-President of the Management Board, Economic and Financial Affairs of LW Bogdanka S.A.

In 2021, the LW Bogdanka Group had investment expenditure of PLN 452.8 million. The largest portion of this sum, i.e. PLN 206.3 million, was used for new excavations and modernisation of the existing ones.

2021 saw increased efforts in the area of social responsibility. We became involved in a number of valuable initiatives and introduced our own projects related to CSR and sustainable growth by stimulating the development at the local level, striving to protect the precious environment as well as supporting and promoting both young talent and local leaders in various areas. The Company engages in cooperation on many levels, thus showing openness and consistency in pursuing development of the Lublin region that would be based on modernity but respect the legacy of the mining sector as well as tradition of this part of Poland - said Adam Partyka, Vice President of the Management Board, Employee and Social Affairs, LW Bogdanka S.A.

The financial results of the LW Bogdanka Group for Q4 and 2021 are presented in the table below:

[PLN `000] Q4 2020 Q4 2021 Change 2020 2021 Change
Net revenue on sales 468,579 702,801 50.0 % 1,822,112 2,371,280 30.1 %
EBITDA 148,519 259,292 74.6 % 466,167 797,601 71.1 %
EBIT 44,499 154,001 246.1% 95,241 366,798 285.1 %
Net profit 38,123 123,515 224.0% 72,962 288,266 295.1 %

The Company continues to implement innovations, such as Internet of Things, optimisation of energy consumption and lower use of steel. The Company also strives to enhance the comfort of work. Last year, one of our achievements was the introduction of binary ice in air conditioning systems.

We wish to make use of our expertise to extend the scope of the Company's operations to include activities outside of our core business.We have launched a number of initiatives to diversify our operations. Some of the projects will soon be completed, other are at the tender stage, and the remaining ones are being investigated in terms of cost-effectiveness,  said Dariusz Dumkiewicz, Vice President of the Management Board for Development of LW Bogdanka S.A.

 


LW Bogdanka S.A. – Highlights

Lubelski Węgiel Bogdanka S.A. is the leader among hard coal producers in Poland, standing out in the industry in terms of modernity and efficiency of extraction. It is one of the largest hard coal mines in Poland. Lubelski Węgiel Bogdanka S.A. conducts primarily mining operations with respect to extraction, agglomeration and sale of hard coal. The Company supplies raw material mainly to industrial customers. Supplies are delivered based on long-term agreements with the sales made to commercial and industrial power sectors.

The Company has been listed on the Warsaw Stock Exchange since June 2009.

Since October 2015, Bogdanka has been part of the Enea Group, the second leading producer of electrical energy in the Polish power market, which manages a full value chain on the electrical energy market – from petrol, through production, distribution and sale of electrical energy, to customer service.
 

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12 of August 2022
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© LW „Bogdanka” S.A. - 2022
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