This change resulted, among others, from the rising prices of coal and coke on the global markets and restructuring measures undertaken by the company in 2016 and completed in March 2017, including those related to the transfer of some of its production assets to SRK.
The JSW Group closed the first quarter with a net profit of PLN 863 million, rebounding from a loss of PLN 59.5 million in the corresponding period of the previous year. It should be noted that JSW’s standalone result was even better at PLN 955.4 million compared to PLN 62.0 million in the corresponding period of 2016.
This positive performance was reflected in the Group’s EBITDA for the first 3 months of 2017, totaling PLN 1,239.7 million, much better than the meager PLN 112 million in the same period of 2016.
“Our first quarter performance was very satisfactory, but we need to remember that we are operating on a cyclical and rapidly changing market. Currently, we are focusing on organic growth, further efficieny improvements and investments enabling us to achieve planned coal production levels”, notes Daniel Ozon, acting President of Jastrzębska Spółka Węglowa.
In the first quarter of the year, JSW’s mines produced approximately 4 million tons of coal, down 340 thousand ton from the corresponding period of 2016. Total realized coal sales, including intra-group and external deliveries, were 3.83 million tons, i.e. down about 350 million tons from the same period of 2016.
Sales revenues totaled PLN 2,376 million, or PLN 973.8 million more than in the corresponding period of 2016, driven by the significant increase in coking coal and coke prices.
In the period from 1 January to 31 March 2017, compared to the corresponding period of the previous year, external sales of coking coal rose by 9.1% and internal sales fell by 23.8%, the main reason being the disposal of WZK Victoria. In the period in question, the volume of sales of steam coal to external buyers dropped by roughly 0.2 million tons compared to the previous year, which resulted from lower production of this product.
The prices of the Group’s basic products in the period from 1 January to 31 March 2017 were higher than those achieved in the same period of the previous year. Average coal prices rose 119%, with coking coal prices up by as much as 162.5%, while steam coal prices edged up 7.3%.
The average price of coke sold in the period from 1 January to 31 March 2017 was 80.5% higher than in the first quarter of 2016. Market conditions were of key importance for the high price levels commanded by JSW.
