Jastrzebska Spólka Weglowa S A : JSW posts a profit for last year

In 2019 the Jastrzębska Spółka Węglowa Group generated a net profit totaling nearly PLN 650 million. Despite the economic slowdown with which the entire raw material industry is grappling, the JSW Group's financial results stayed at a stable level.

- Undoubtedly, 2019 was a period of economic slowdown around the world. The crisis in the automobile industry, the suppressed demand for steel in Europe and the trade war between the US and China contributed to the decline in activity in international trade. That is why our current efforts focus on intensifying sales and taking measures to enhance operational and cost effectiveness gradually - underscores Włodzimierz Hereźniak, President of the Management Board of Jastrzębska Spółka Węglowa.

In 2019 the JSW Group's mines produced 14.8 mt of coal and 3.2 mt of coke. The average price for metallurgical coal (coking coal) sold to external customers was PLN 634.84 per ton. In turn, the average coke price was PLN 1,072.79 per ton. Revenue on the sale of coal to external customers was PLN 4.77 billion, while the revenue on the sale of coke and hydrocarbons was PLN 3.55 billion.

The JSW Group's EBITDA in 2019 topped PLN 1.94 billion. In turn, total revenue was PLN 8.67 billion.

- The lower revenue on the sale of coal, coke and hydrocarbons stemming from the lower volume of sales and the lower average prices commanded by the Group's major products contributed above all to this result. We also constantly face pressure from the suppliers of products and services as reflected by the Group's costs - clarifies Radosław Załoziński, Vice-President of the JSW Management Board for Financial Matters.

The JSW Group earmarked more than PLN 2.3 billion on investments while the capital expenditures in the coal segment alone exceeded PLN 2 billion. The quantum of corridor work deserves emphasis. In 2019 JSW completed more than 75 thousand meters of corridor work, i.e. 15% more than in 2018.

- Last year we concentrated our efforts on preparing the JSW Group to face a period of slowdown. Currently, the goal is to complete investments related to modernizing our coal preparation plants and ratcheting up the percentage of coking coal in total production - says Artur Dyczko, Vice-President of the JSW Management Board for Technical and Operational Matters.

The Jastrzębska Spółka Węglowa Group is the largest producer of high quality metallurgical coal (coking coal) for the purposes of the coking industry and the steel milling industry and a significant producer of coke in the European Union. The Group is one of the largest employers in Poland. In total, it employs 30,629 people, with more than 22 thousand employed by Jastrzębska Spółka Węglowa alone.