Kraków, August 24, 2022 (ISBnews) – Lubelski Węgiel Bogdanka, which signed the first contract for the supply of coal to Ukraine earlier this month, sees further opportunities for cooperation on this market, President Artur Wasil told ISBnews. August 13 this year. Lubelski Węgiel Bogdanka concluded an agreement with the company D. Trading International seated in Geneva for the export of power coal to Ukraine. The agreement is valid from August 15 this year. until February 28, 2022, and the value of the deliveries provided for therein is an estimated USD 27 million (i.e. approximately PLN 104 million). “Bogdanka will export coal to Ukraine, we have signed a contract for over PLN 100 million, which is valid until the end of February next year. This is in line with the assumptions of the strategy published at the end of last year. We are looking for new markets for our coal, knowing that the demand in Poland will decline in the coming years. Ukraine, on the other hand, needs imported coal, and – as the minister responsible for energy security mentioned – Poland will be one of the import directions. Due to the geographic rent, we are able to provide the raw material, and at the same time we are competitive in terms of prices. We have established valuable relations with Ukrainian entities and we see further opportunities for cooperation in this market, ”Wasil said in an interview with ISBnews. Entering the Ukrainian market means starting competition with coal from global markets and for the company it will be a reference point for building a stable future, emphasized the president. “In Poland, coal will be needed for a long time and we want Bogdanka to produce coal as long as it is needed. Polish, stable energy sources are currently lignite and hard coal-based power plants, we do not have nuclear or gas power plants, we do not have other, alternative sources. The resources allow us to extract even for several dozen years. I can confirm that we want to start producing semi-coking coal from 2026. We do not exclude that this process can be accelerated, on our part it does not require too much financial expenditure. Coking coal, which is included in the EU list of strategic fuels, is undoubtedly one of the important branches of the company’s future development, ”added Wasil. Soon, Bogdanka will launch a photovoltaic farm, and the generated energy will be used for its own needs, its expansion is planned in the second stage. According to the declarations made, renewable energy, circular economy and adaptation of post-mining areas will be new industrial projects. The president emphasized that he was maintaining the production target announced for this year. “We have a very good first quarter, preliminary results for the first half of the year allow us to look into the future with a certain amount of calm” – he indicated. The production assumptions for 2022 assume the extraction of 9 million tons of coal – after six months, the production was 4.9 million tons, and sales were 4.6 million tons.
According to preliminary data published in July, Bogdanka recorded PLN 92 million of consolidated net profit in the first half of the year. br. The operating profit was initially PLN 116.9 million and the EBITDA result reached PLN 330.6 million. Consolidated net sales revenues amounted to PLN 1,046.6 million. At the end of 2020, LW Bogdanka had a 19.7% share in the steam coal market in Poland and 25.3% in the coal market sold to the commercial power industry. Since October 2015, it belongs to the Enea capital group. The company has been listed on the WSE since 2009. Consolidated revenues amounted to PLN 1.82 billion in 2020 Wojciech Żurawski (ISBnews) We are in Google News. Search for what’s important and stay up to date with the market! Watch us
