The achieved extraction is in line with this year’s customer delivery schedule.The Company upholds the plan to sell 9.3-9.5 million tonnes of coal in 2015.
LW Bogdanka Gruop post-2014: implementation of strategic objectives and solid results despite difficult market conditions
The Lubelski Węgiel BOGDANKA Group whose parent is LW BOGDANKA S.A. despite challenging market conditions, achieved solid financial results in 2014. Sales revenue during this period exceeded PLN 2 billion, which was higher by 6.0% than the results achieved in the same period a year earlier. EBITDA amounted to nearly PLN 750 million, EBIT reached PLN 362.3 million, and net profit PLN 272.4 million. In the fourth quarter of 2014 alone, the revenue exceeded PLN 523 million, EBITDA amounted to PLN 247.5 million, EBIT - PLN 135.7 million, and net profit reached PLN 101.6 million. The Company continues efforts to further increase the efficiency — as a result the unit cash extraction cost fell by 12%, in real terms, in relation to 2012.
Lubelski Węgiel BOGDANKA S.A. performed a record-breaking extraction in the Company’s history of 2.56 million tonnes of commercial coal in the fourth quarter of 2014.
Further to the decision of the Ministry of Environment delivered on 12 November 2014 to maintain the challenged decision of 5 September 2014 on refusal to grant a licence for extraction of hard coal in the “Lublin Coal Basin deposit — areas K-6 and K-7”, Lubelski Węgiel BOGDANKA S.A. hereby informs you that it will immediately file an appeal against this decision with the Provincial Administrative Court in Warsaw.
Despite challenging market situation and results being under the pressure of coal price drops, the Company’s profitability ratios remain at a level higher than average, which may be illustrated with EBITDA margin amounting in the third quarter of 2014 to 36.4%.