Energy – coal. Billion-dollar losses of state-owned companies

Coal companies controlled by the State Treasury generated a net loss of nearly PLN 2.3 billion in three quarters. According to the data of the Ministry of State Assets, the hard coal mines paid an average of PLN 44.61 for each ton of coal sold.

This year’s results of the coal sector are better than those achieved in the comparable period of last year, when the average difference between the cost of production and the selling price of a tonne of coal was higher by PLN 14.88, and the net loss was higher by PLN 1 billion 61.9 million.

Power engineering. Increased demand for coal

In relation to the last year dominated by the pandemic, 2021 saw a noticeable increase in demand for coal, which was a derivative of an increase in energy production from this raw material.

During the three quarters of this year. the mines produced over 40.8 million tonnes of coal (an increase by 736.4 thousand tonnes, i.e. 1.8% year on year), including less than 31.5 million tonnes of thermal coal (an increase of 1.7%) and almost 9.4 million tons of coking coal (an increase by 2.3%).

By less than 15 percent. (over 5.5 million tonnes) increased sales of coal in the nine months of this year, the mines of which supplied over 42.7 million tonnes to the market, including almost 38.5 million tonnes for the domestic market (an increase by almost 4.4 million tonnes ).

Nearly 4.3 million tons of coal were shipped abroad – 37 percent. more than in the comparable period last year. At that time, over 9.2 million tons of imported coal flowed to Poland – approx. 170 thousand tons. tons more than the year before. Importers were not favored by high prices on the global coal market.

Despite the boom in international commodity markets observed this year, the Polish mining industry, where prices are mostly shaped in long-term contracts with customers, during the three quarters of this year. sold coal cheaper than a year earlier – the average total coal sales price was PLN 319.37 per ton and was 0.6% y / y. lower compared to the nine months of 2020

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Average price of coal

The average selling price of steam coal after three quarters of 2021 was PLN 272.36 per ton (a year-on-year decline by 4%), while the average selling price of coking coal was PLN 479.04 per ton (an increase by 8.2 percent).

The average unit cost of coal extraction in hard coal mining after nine months of 2021 amounted to PLN 358.20 per ton and was lower year-on-year by PLN 16.95. On the other hand, the unit result from the sale of coal was negative (PLN 44.61 per ton), although better by PLN 14.88 per ton than in the previous year.

This year’s increase in coal sales resulted in an increase in the revenues of the mining industry to over PLN 13.6 billion in three quarters, but the costs of coal sold exceeded PLN 15.5 billion in this period, which resulted in a loss on the core business of coal sales of PLN 1 billion PLN 907.2 million. The net loss amounted to PLN 2 285.3 million and was lower than in the previous year by PLN 1 billion 61.9 million.

PGG with most of the loss

Most of the loss is attributed to the largest domestic coal producer – Polska Grupa Górnicza, which does not officially disclose its financial results. According to the reports of the companies listed on the stock exchange, the Jastrzębska Spółka Węglowa Group had a net loss of PLN 62.7 million after three quarters, while the Bogdanka mine recorded a profit of PLN 164.8 million in this period.

According to MAP data, in the three quarters of this year, mines spent less than PLN 1.5 billion on investments (including the preparation of new workings and mining fronts) – PLN 633.3 million less than in the previous year. For the implementation of the tasks of the Mine Restructuring Company, dealing with, inter alia, physical liquidation of post-mining property, PLN 254.97 million was transferred from the budget in this period.

At the end of September 2021, 77 thousand people were working in coal companies. 885 people, which means a reduction in employment compared to the end of 2020 by 2 thousand. 132 people.

Main photo source: Shutterstock

About Eric Wilson

The variety offered by video games never ceases to amaze him. He loves OutRun's drifting as well as the contemplative walks of Dear Esther. Immersing himself in other worlds is an incomparable feeling for him: he understood it by playing for the first time in Shenmue.

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