EBITDA in H1 2025, net of non-recurring events, was negative and stood at PLN 911.4 million compared to PLN 829.5 million in the corresponding period a year earlier.
In H1 2025, the Group produced nearly 6.2 million tons of coal, more than 3 percent more than in H1 2024, and more than 1.4 million tons of coke, more than 9 percent less than in the corresponding period last year.
Total coal sales in H1 2025 compared to H1 of last year rose 15.4 percent to 4.1 million tons.
Coke sales in the first six months of this year were down 15 percent compared to the first six months of 2024, falling from 1.7 million tons to just under 1.5 million tons.
The difficult market and macroeconomic situation has affected the coking coal and coke prices received by JSW. In H1 2025, average coking coal prices fell 29 percent.
Comparing average coke prices in the first six months of 2025 to the corresponding period of 2024, there was a decrease of 24 percent.
The drop in prices resulted in significantly lower sales revenues, which stood at more than PLN 4.7 billion, down almost 24 percent from the corresponding period a year earlier.
- The market has definitely not been in our favor in recent months. Uncertainty resulting from, among other things, growing protectionism, the deteriorating condition of the European and global steel industry, growing Chinese steel exports generating an influx of low-cost imports to Europe, and a more than threefold increase in Indonesian coke exports were the main factors shaping the market environment in the first half of 2025. Low coal prices combined with persistently unfavorable currency exchange rates heavily affected the Company's financial position and prevented it from achieving a positive result. However, we are taking all possible strategic and operational measures to maintain and improve liquidity - explains Ryszard Janta, President of the JSW SA Management Board.
In response to the JSW Group's financial standing, a Strategic Transformation Plan was developed and adopted last fall. Since the beginning of the Plan's implementation until 31 July this year, the Company has optimized spending in the area of operational and investment purchases in the amount of almost PLN 1.9 billion, of which: PLN 328 million - in the area of purchases, which is more than 91 percent of the plan for the entire year 2025, and PLN 1.5 billion - in the area of investments. However, the most advanced work is underway in the "Efficient Mine" area. July brought a significant acceleration of work at longwalls and working faces. Incentive measures, which have been introduced on a pilot basis, have covered 12 longwalls and 15 working faces. Their effectiveness is confirmed by the numbers: the progress of work in the longwalls exceeded TEP targets by 34 percent, and in development by as much as 42 percent.
- The Strategic Transformation Plan, which has been in place since November 2024, helps us a lot - it sets the direction, organizes our activities and provides a solid foundation, but it won't solve all the problems. Under current market conditions, unfortunately, this is still not enough. In the first half of the year, we had to take a fresh look at our investment plans. We have changed our priorities and looked for savings where possible - especially in the area of purchasing. At the same time, we have launched initiatives to increase production and improve productivity. In this difficult situation, our main focus is on investments that make a real difference to people's safety and allow us to increase output. This is the most important thing for us today - says Ryszard Janta.
Despite the very positive effects of the Strategic Transformation Plan, JSW's Management Board is taking additional measures to strengthen liquidity. One of them is an agreement with the Social Security Institution (ZUS) to defer the payment of social security contributions.Efforts are also continuing to obtain a refund of the windfall tax in the amount of PLN 1.6 billion. In parallel, talks are underway with financial institutions to increase the flexibility of JSW's financing structure. In addition the JSW Group is analyzing alternative measures that could generate additional funds for its current operations.
***
The JSW Group is the European Union’s largest producer of high quality coking coal and a significant producer of coke used to produce steel. Steel is crucial to the development and transition of the economy. Steel is used to manufacture wind turbines, machinery, vehicles (including electric vehicles) and building structures among other things. The JSW Group’s operations are vital to the transition and development of a climate-neutral economy. Coking coal has the status of a critical raw material for the European economy for the fourth time, i.e. a raw material of strategic economic importance at risk of supply disruption due to the high concentration of its production outside the European Union.
