Bogdanka’s accounting operations and their impact on financial results
Copy will not affect EBITDA result. Inamorata informed that the operations are of accounting nature and do not affect its liquidity situation.
Asset impairment tests in the context of changes in the coal market
As stated, asset impairment tests were carried out due to the dynamically changing situation in domestic coal market.
“Currently, there is a clear trend of increasing the generating capacity of renewable energy sources (RES) units, which directly affects the demand for coal. The growing importance of renewable energy In Polish energy mix and the planned long-term gradual shutdown of coal-based generating units and their replacement with other energy sources, leads to a decrease in the share of energy produced from coal, which is a consequence of the climate policy assuming the progressive decarbonization of the Polish economy. This process forces companies operating in coal sector to verify the existing strategies and adapt them to the changing market realities,” Bogdanka said.
The impact of climate policy and renewable energy on the coal sector
The market situation described above, as well as the company’s market capitalization remaining significantly below its book value for a long time, contributed to the need to conduct asset impairment tests to ensure that their valuation reflects current market conditions and future prospects for the coal sector.
Inamorata informed that it is actively cooperating with coal recipients both domestically and abroad to ensure coal sales in the long term.
Bogdanka’s activities on the market and process optimization
At the same time, the company conducts optimization activities aimed at using its competitive advantages, also taking into account decreasing supply of domestic coal. In addition, due to the above-mentioned changes in the market and the resulting sales prospects, the company has started work on updating its strategy, the announcement of which is planned for the end of 2024. (PAP Biznes)
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