President of JSW: The market is favorable to us

2021-11-18 15:28

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2021-11-18 15:28

President of JSW: The market is favorable to us
President of JSW: The market is favorable to us
/ JSW

Since mid-August we have been observing a dynamic increase in coking coal prices; the market is favorable for us – said Tomasz Cudny, president of Jastrzębska Spółka Węglowa (JSW) specializing in the production of this type of coal, commenting on the results of the JSW group for three quarters of this year.

In Thursday’s comment on the results, the company’s representatives assessed that JSW’s financial condition was improving, and that the improvement in the international coal, coke and steel markets had a significant impact on the results.

After nine months of 2021, the JSW Group recorded a net loss of PLN 62.7 million, compared to PLN 1 billion, 88.6 million net loss a year earlier. In the third quarter of this year. The Group generated PLN 267.8 million of net profit.

“The market is favorable to us, the more so as the demand for coking coal outside of China is also increasing. Remember that the coke market is a global market, and coke from Poland competes with supplies of this raw material from around the world” – commented the president of JSW, quoted in the statement of the Jastrzębie-based company .

The CEO noted that the global coke trade in the second quarter of this year amounted to 7.2 million tonnes, which was the highest quarterly result in at least ten years.

The JSW group’s EBITDA value (excluding one-off events) was shaped over the three quarters of this year. at the level of PLN 1 billion 44.2 million. Total coal production fell by 4.1 percent. and amounted to 10.2 million tons, and increased by 15.1 percent. coke production, which reached the level of nearly 2.8 million tonnes.

Sales of coal produced in JSW’s mines increased by 11 percent during the nine months of this year. compared to the same period last year and amounted to 11.1 million tonnes. Coke sales volume increased by 1.4 percent. and amounted to 2.7 million tons.

In three quarters of this year. The prices of metallurgical (coking) coal and coke also increased – by 4.5 percent, respectively. and 40.8 percent This contributed to an over 31% increase in sales revenues in the JSW Group, which exceeded PLN 6.7 billion from the beginning of the year to the end of September.

Employing approx. 22 thousand. employees Jastrzębska Spółka Węglowa is the largest producer of high-quality hard coking coal and a significant producer of coke in the European Union.

Last Monday, JSW announced in a statement that it would verify the basic operating assumptions for 2021, reducing the level of coal extraction assumed for this year from approx. 16 million tonnes (as provided for in the company’s strategy) to 13.8 million tonnes. The verification was carried out in consultation with JSW’s trading partners, and coal shipments are carried out in accordance with the contracts, thanks to the accumulated reserves.

The change in production assumptions results mainly from the gradual change related to the company’s shift to increased coking coal production. “After changing the operating model and carrying out replacement and development investments in coal mechanical processing plants, from 2031 JSW will be able to produce mainly metallurgical coal” – said Tomasz Cudny last Tuesday.

In the following years, JSW assumes an annual coal production of over 14 million tonnes and an increase in the quality and share in the production of metallurgical coal.

As JSW informed in spring, last year coking coal accounted for approx. 77 percent. the entire coal production in the company’s mines. The rest was steam coal. In September this year. JSW’s vice-president Sebastian Bartos announced that this year JSW intends to increase the share of coking coal in total production to approx. 85% (PAP)

author: Marek Błoński

mab / pad /

Source:PAP

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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