LW Bogdanka S.A. extracts 1.90 million tonnes of coal in the second quarter and upholds the plan to sell 8.5 million tonnes of coal in 2015
Lubelski Węgiel BOGDANKA S.A., the most advanced and effective hard coal mine in Poland, produced 1.90 million tonnes of commercial coal in the second quarter of 2015, compared to 1.99 million tonnes achieved in the first quarter of 2015, and 2.02 million tonnes in the second quarter of 2014. The level of sales in the second quarter of 2015 totalled 1.88 million tonnes, as compared to 1.95 million tonnes in the first quarter of 2015 and 2.10 million tonnes in the second quarter of 2014. Cumulatively, production of commercial coal in the first half of the year amounted to 3.89 million tonnes, while sales totalled 3.82 million tonnes, as compared to 4.25 million tonnes and 4.33 million tonnes in the same period of 2014, respectively. Lower extraction and sales of coal is connected with continued market difficulties and oversupply of coal on the Polish market.
The situation on the Polish coal market continues to worsen. This is connected with a continuing oversupply of coal and the aggressive price policy of the government-subsidized Kompania Węglowa. A consequence of these factors is the threat of a reduction in the volume of sales to Bogdanka’s customers in 2015 and perhaps over a longer perspective. At this time we estimate our sales capacity for this year at 8.5 million tonnes, which is much less than our production capacity.
Bogdanka insists that the President of the Office of Competition and Consumer Protection initiated proceedings related to the application of prohibited business practices by Kompania Węglowa
LW BOGDANKA S.A., the most modern and most effective hard coal mine in Poland, moved to the President of the Office of Competition and Consumer Protection for the initiation of proceedings related to the Kompania Węglowa S.A.’s application of prohibited business practices limiting competition.
In the opinion of the Company, the activity of Kompania Węglowa S.A., involving the sale of coal below costs of extraction, violates the regulations related to competition protection, as well as can be qualified as acts of unfair competition.
Bogdanka after Q1 2015: results affected by market situation, cost optimisation and investment programme underway
The Lubelski Węgiel BOGDANKA Group, with its parent company, Lubelski Węgiel BOGDANKA S.A., the most modern and most efficient hard coal mine in Poland and leader in the Polish power coal production market, recorded a Q1 2015 revenue figure of PLN 428.3 million (down by 11.1% compared to the same period of last year). EBITDA amounted to PLN 144.4 million, EBIT reached PLN 48.2 million and net profit was PLN 32.7 million. The results, while making the Company stand out positively in its industry, are lower than the figures for the same period of last year, which is a result of revising the Company’s production plans to reflect the present coal selling situation on the market.
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.