Polish Coking Coal Miner JSW Group Hit by COVID19 Pandemic

The sudden slowdown in economic activity, softening steel demand, decline in steel production and demand for the raw materials used to produce it caused
Polish Coking Coal Miner JSW Group Hit by COVID19 Pandemic

by the global COVID-19 pandemic had significant impact on JSW Group’s financial performance in nine months of 2020. Polish coking coal miner JSW Group posted a net loss of PLN 1,088.6 million, compared to the PLN 704.4 million profit the year before. EBITDA for the first nine months of 2020, net of non-recurring events, stood at PLN minus 80.5million.

Due to the epidemic, in the period from April to September, Jastrzębska Społka Weglowa could not achieve the planned production volume, as a result of which in the first 9 months of 2020 coal production stood at 10.6 million tons and was 2.8% lower than the year before. Coke production amounted to 2.4 million tons and was 4% lower than last year.

The prices of metallurgical coal and coke dropped significantly. The average price of metallurgical coal stood at PLN 457 per ton, down 32.4%. A similar drop was recorded in coke sales prices, which reached PLN 750 per ton, i.e. 32.7% less than in the corresponding period of last year.

Sales of the coal produced in Jastrzebska Społka Weglowa mines was slightly lower than the year before and stood at nearly 10 million tons in the period in question. This commodity’s sales revenues were down 28.4% and hit the level of PLN 2.6 billion.

Coke sales were 14.3% higher, while revenues on the sale of coke and hydrocarbons decreased by 22.7% and stood at PLN 2.3 billion. Total sales revenues in the JSW Group in the first 9 months of 2020 stood at PLN 5.2 billion.

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