The LW Bogdanka Group’s Integrated Report for 2015 (published in 2016) was recognised in the prestigious contest for the Deloitte Central European Sustainability Report Award, commonly referred to as the Green Frog Award (GFA).

On 19 April 2017 in Warsaw, the representatives of the Lublin mine, including the President of the Management Board Krzysztof Szlaga, had the pleasure to collect the main award.

In 2016 the Lubelski Węgiel Bogdanka Group generated revenue of PLN 1.8 billion, and net profit of PLN 182 million. In the period in question, EBIT amounted to over PLN 237 million, while EBITDA totalled PLN 606.5 million. Coal prices, which still remained low on a year-on-year basis despite the relative stabilisation in Q4 2016, had a significant influence on the financial results.

LW Bogdanka S.A., the most advanced  and most efficient hard coal mine in Poland and a member of the Enea Group, one of the leaders in Poland’s power market, presented a development strategy for the Mining Area of the Enea Group. The strategy covers a period until the year 2025, within the 2030 framework. The strategy is in line with the Strategy of the Enea Group and reflects both Responsible Development Plan and Polish Hard Coal Mining Programme.

The strategy of LW Bogdanka in the Mining Area of the Enea Group includes two development scenarios: baseline, which assumes average production at a level of about 8.5 million tonnes a year over 2017-2025, and flexible development, with average annual production at a level of about 9.2 million tonnes over the same period. Taking into account the current and expected market situation, the Company wants to implement the flexible development scenario. CAPEX forecast for 2016-2025 (nominally) amounts to PLN 3.7 billion for the baseline scenario and about PLN 4 billion for the flexible development scenario.

The Lubelski Węgiel Bogdanka Group has signed an annex to the Long-Term Agreement for Sale of Thermal Coal with ENERGA Elektrownie Ostrołęka S.A. The Annex extends the term of the Agreement until the end of 2019 (initially, the Agreement was to end on 31 December 2016) and sets forth the terms and conditions of supplies in 2017.

After the three quarters of 2016, the Lubelski Węgiel Bogdanka Group generated revenue of PLN 1.3 billion (at a similar level to the one achieved last year despite lower coal prices) and net profit of PLN 120.2 million (lower by over 9% compared to the previous year). In the period in question, EBIT amounted to PLN 154.6 million (a decrease of 11.4% y/y), while EBITDA totalled PLN 432.3 million (a decrease of 5.6%).

LW BOGDANKA S.A., the most modern and efficient hard coal mine in Poland, which is part of the Enea Group,one of the leaders of the Polish power market, has signed an annex to the agreement with ENGIE Energia Polska Spółka Akcyjna regarding supplies of thermal coal for the purposes of the ENGIE power plant in Połaniec.

Lubelski Węgiel Bogdanka Group has signed annexes to its long-term agreements with Enea Wytwarzanie Sp. z o.o. to increase the volumes of Bogdanka’s supplies to Enea Group, starting 2017.

The Capital Group of Lubelski Węgiel Bogdanka in H1 2016 generated sales revenue on the level of over PLN 848.9 mln and net profit in the amount of almost PLN 75 mln. It means that despite further drop in prices, both the revenue and net profit were kept on the level close to the same period of the previous year. EBIT result in the said period amounted to PLN 96.6 mln (drop by 4.7 per cent yoy) and EBITDA: PLN 277.4 mln (drop by 4.9 per cent).

LW BOGDANKA S.A. finished drilling works related to drilling of two boreholes under the prospecting license for the Ostrów deposit.

We are happy to present you our latest publication, i.e. the Integrated Report for 2015.

This Report is the third report prepared by LW Bogdanka in accordance with the Global Reporting Initiative (GRI) guidelines, and the second integrated report combining both financial and non-financial results.