“The solidarity contribution had an impact on the results.” JSW presents the financial report

Luc Williams

The value of the EBITDA indicator (operating profit increased by depreciation and write-offs for non-financial assets) for 2023 amounted to PLN 4.55 billion (in 2022: PLN 10.6 billion; in 2021: PLN 2.5 billion). Sales revenues amounted to PLN 15.34 billion (PLN 20.2 billion a year earlier).

Decrease in raw material prices, increase in production costs

The JSW press release emphasized that the financial results were affected by: a decline in raw material prices, an increase in production costs and a solidarity contribution of PLN 1.6 billion (as the only company in Poland).

It was explained that lower by 24.1%. than the sales revenues obtained in 2022 is primarily the result of lower average coal sales prices, but also a lower volume of coal sold and a decline in revenues from the sale of coke and coal derivatives.

Paweł Rostkowski, acting president of JSW, quoted in the statement, noted that although the year-on-year decline in net profit was over 87%, 2022 was “absolutely exceptional” for this type of business. He pointed out that JSW recorded record financial results at that time, taking advantage of an unpredictable combination of factors that periodically pushed coking coal prices to unprecedented levels, impossible to repeat in stabilizing market conditions.

The average price of coking coal in 2023 was PLN 1,124.52 per tonne (less by 25.6% than in 2022), and coke – PLN 1,501.71 per tonne (less by 31.1%, than in 2022).

According to the company's annual report published on that day, the volume of coal production last year amounted to 13.5 million tons (a 4% year-on-year decline), including 10.9 million tons of coking coal (this means that the share of coking coal production amounted to 80.5%, with the strategic goal of 90% from 2026). During this period, JSW also produced 3.4 million tons of coke (y-o-y increase by 4.3%).

The JSW management report for 2023 states, among other things, that in the coal segment – with the production of 13.5 million tons of coal, 13.3 million tons were sold. Sales revenues from external customers amounted to PLN 8.88 billion, and EBITDA exceeded PLN 4.8 billion. Investments in the coal segment exceeded PLN 3.8 billion, including over PLN 600 million for making new deposits available (PLN 346 million in 2022).

In the coke segment, last year the JSW group produced 3.4 million tons of coke and sold 3.3 million tons. Sales revenues from external customers in this segment amounted to PLN 5.63 billion. Investments in the coke segment amounted to nearly PLN 540 million.

Reduction of Methane Emissions for over PLN 452 million

In total, investments in 2023 amounting to PLN 4.2 billion were 48.3% higher than a year earlier. These were mainly expenses for: mining excavations, mechanical coal processing plants, transport equipment, modernization of mechanized supports, modernization of coking battery No. 4 in the Przyjaźń coking plant and environmental protection.

Expenditures on environmental protection in the entire JSW group amounted to over PLN 452 million last year and concerned mainly the implementation of the Methane Emission Reduction (REM) program.

The group's authorities also recalled that last year it was the first entity from the mining sector in Central and Eastern Europe to obtain a “green” loan in the Sustainability-Linked Loan formula in the amount of PLN 1.65 billion, in which the amount margin depends on meeting sustainable development goals. This loan is intended to serve the implementation of JSW's climate transformation goals.

In a letter accompanying the report, the acting president of the JSW Group summarized that the net profit achieved last year was very good, especially since it was significantly influenced by the company's transfer of the so-called solidarity contribution.

Rostkowski also noted that in 2023, JSW was not spared by random events that had an impact on the coal production volume generated by the group. These included: a fire in the Knurów mine in March, which resulted in a reduction in production by 250,000. tons, as well as a fire in the Pniówek mine in December, which, according to estimates, will reduce production this year. by 450 thousand tone.

The decline in coal production was also caused by delays in launching the longwall in the Borynia mine and two longwalls in the Budryk mine.

Jastrzębska Spółka Węglowa is the largest producer of coking coal in Europe, used to produce steel.


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