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JSW Group’s financial results in Q1 2022

Commanding high prices for coking coal and coke in combination with higher production and sales allowed the JSW Group to generate record-breaking results in the history of the company’s existence. During the first three months of this year the JSW Group generated a net profit of PLN 1.85 billion, up 82.2% from the previous quarter.

photo: Dawid Lach

EBITDA in Q1 of this year, net of non-recurring events, stood at PLN 2.60 billion. This represents 40% growth versus the previous quarter. Total sales revenues in the JSW Group were up 27.3% versus Q4 2021 to PLN 4.93 billion. In the period under discussion the average sales price of coking coal was PLN 1,366 per ton, i.e. up 26.3%, while the price of coke moved up 12.7% to the level of PLN 1,976 per ton.

“Today we are announcing the JSW Group’s Q1 financial results. These results are very robust. This is our joint success, but at the current time, in the shadow of the tragedy that has affected all of us, we find it difficult to enjoy this achievement. Since we are a public company, we would like to provide some commentary to all the people who have worked arduously to attain this result and to those who invest in us. We are aware of the current market environment, JSW’s strategic position, the impact exerted by the military conflict in Ukraine and the ensuing opportunities and threats. We took advantage of the past quarter to strengthen our position as a local European supplier of strategic metallurgic raw materials and an active participant in building our independence and energy transition that is constantly investing in its assets. We are the beneficiary of the market situation. In the last quarter we generated results not previously recorded in the company’s history. However, we do not forget about the risks inherent in such significant growth in the prices of raw materials that is additionally exacerbated by the growth in the costs of energy carriers, labor, sourcing capital and the burdens related to high ETS costs”, says Tomasz Cudny, President of the Management Board of Jastrzębska Spółka Węglowa S.A. “We are monitoring the macroeconomic situation and in our clients’ sectors to be able to respond appropriately to changes as they transpire. Our goal is to maintain the stability and reliability of product supplies with high quality parameters within the framework of partnership and professional relations with clients. This is a guarantee of the company’s success not only during a period of very upbeat market conditions”, adds President Cudny.

In the first quarter of the year the total coal production volume was 3.8 million tons and was up 5.4% from Q4 2021. Coke production totaled 0.9 million tons and was down by slightly less than 2% versus the previous quarter.

In the period from 1 January to 31 March 2022 total coal sales climbed 6.7% versus Q4 2021 to 4.1 million tons. Coke sales in Q1 2022 totaled 0.9 million tons and were up 7.2% versus the prior quarter.

Revenues on coal sales to external clients totaled PLN 2.68 billion, or 31.7% more than in the previous quarter. In turn, the revenues on the sales of coke and hydrocarbons were up 20.7% in the period under analysis and totaled PLN 2.06 billion.

 

Capital expenditures in the JSW Group in the period in question stood at PLN 541.3 million (on a cash basis) and were up 15.2% in comparison to the last quarter of the previous year.

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