The Group’s net profit in the first nine months of the year was PLN 1.44 billion compared to last year when it was PLN 1.8 billion. Sales revenue in this period totaled PLN 7.3 billion versus PLN 6.7 billion in the same period last year with top line growth coming from selling a higher quantity of coal and the price trends on the coke market. In the first nine months of 2018 JSW’s mines produced 11.3 million tons of coal, similarly to the corresponding period of 2017. Total coal sales consisting of intragroup and external shipments were 11.1 million tons, i.e. 0.1 million tons higher than last year.
Coke production rose 3.8% in this period to 2.7 million tons from 2.6 million tons in the corresponding period of last year. Sales held steady at 2.6 million tons. The revenue on the sales of coke and hydrocarbons in this period was PLN 3.2 billion, up PLN 0.5 billion compared to the same period in 2017.
In this period the Company achieved coking coal prices at a similar level to last year while the average price of the coke sold from January to September 2018 rose 17.4% over the corresponding period of 2017. The evolution in price trends made it possible to restore a state of equilibrium between coke and coal prices.
„We are extending our resource base and pursuing investments to procure higher coal production in subsequent years. At the outset of this year we presented our growth strategy to 2030 and we are in the course of its execution. We want to continue strengthening our leadership position on the coking coal market in Europe. We intend to enhance output, productivity and safety while pursuing the development of new technologies”, says Daniel Ozon, CEO of JSW SA. Capital expenditures are up this year by some 86.1% to PLN 1.03 billion. In the corresponding period of 2017 CAPEX was PLN 553.9 million. “This includes the rebuilding of the plant and machinery used in production and the continuation of investments to modernize the Coal Preparation Plants”, says Daniel Ozon, CEO of JSW SA.
In addition to its core business of coal and coke production, the JSW Group is entering new areas with greater boldness. “We try to utilizeby-products. Today we already are the leader in the economic utilization of methane. We are also striving to launch the production of hydrogen which we will recover from coke oven gas in our coking plants. Sixty percent of that gas is converted into energy. We are transforming from a traditional supplier of a strategic raw material to the steel industry into a model industrial business with the following value chain: coking coal – coke – gas – hydrogen – clean energy”, says Daniel Ozon, CEO of JSW SA.
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The Jastrzębska Spółka Węglowa SA Group is the largest producer of high quality hard coking coal and a significant producer of coke in the European Union. For years the Group has held a key position on the Polish and European coking coal market by producing high quality coking coal and coke and due to operating in the vicinity of its main clients. The Group also mines steam coal. The Group’s business and its results are materially dependent on the demand for coal and coke and their prices.
