EBITDA (net of non-recurring events) was PLN 2.91 billion. After 9 months, the net result reached a record high level of PLN 6.36 billion and EBITDA (net of non-recurring events) was PLN 8.73 billion.
- The third quarter showed that the company is able to navigate even the very volatile and unpredictable geopolitical environment. We are reaping benefits from our cooperation with all the partners, the trading relationships and the long-term contracts. These factors have minimized the negative consequences of the difficult market conditions. Additionally, after this year’s incidents in JSW mines and after announcing a force majeure event, the company stabilized its overall coal production and financial results in spite of the significant impact on our activities of factors such as growing inflation, rising energy costs, prices of materials and services and increasing labor costs - said Tomasz Cudny, President of the Management Board of JSW S.A. - Despite the difficult geopolitical circumstances, which affected the market for raw materials for the metallurgy sector, we have continued to implement our adopted strategy. It is the investments in mines and coking plants that allow the JSW Group to function efficiently and respond to market needs in the volatile conditions; this is why surplus funds are regularly invested in the Closed-End Investment Fund, which will secure these activities in case of an economic downturn. We attach special importance to climate transition and the role our company plays in this process. Coking coal will remain, for many years to come, an indispensable element in the production of steel, which is important for global transition. We are actively working on reducing our carbon footprint and ultimately on achieving climate neutrality - added the President of the JSW S.A. Management Board.
In Q3 2022, total sales of coal produced in JSW mines reached 3.49 million tons, which marked a slight decline from the previous quarter. During the period in question, the prices of coking coal and coke decreased by 18.9% and 10.7%, respectively, compared to the previous quarter. The average price of coking coal was PLN 1,560.28 per ton, while the average price of coke reached PLN 2,385.59 per ton. This caused a 13.8% decline in total sales revenues, which amounted to more than PLN 5.15 billion.
Total coal production in JSW S.A. in the third quarter of the year was 3.43 million tons (including 2.64 million tons of coking coal) and was slightly higher than in the previous quarter.
The production during the 9 months of this year grew 4.1% compared to the corresponding period of the previous year. On the other hand, in Q3 2022, the production of coke fell by 11.9% down to nearly 0.8 million tons.
It is worth noting the 3% quarter on quarter increase in capital expenditures associated with investments made in the JSW Group on a cash basis. They amounted to over PLN 623 million. When comparing the 9-month period of 2022 to the corresponding period last year, the increase was 33.1% up to PLN 1.77 billion. The higher capital expenditures are associated, among others, with modernization of coke oven battery no. 4 at the Przyjaźń Coking Plant in Dąbrowa Górnicza, construction of a power unit at the Radlin Coking Plant and the purchase of mining equipment and machinery.
