Polish coalminer Bogdanka drops forecasts on state rescue plan

By bne IntelliNews March 12, 2015

Polish coalminer Bogdanka on March 12 lowered its production and spending forecasts for 2015, citing market uncertainty on the back of the state's rescue plan for rival Kompania Weglowa (KW). 

Bogdanka said it expects sales and spending to fall in 2015 as it adapts to what it called "new conditions". It referred to the state bail-out of KW and lower market prices. The company gave no concrete indication if it expected revenue or profit for the year to be affected.

The KW rescue is expected to drop already low coal prices. The government intervention, which will keep KW's 14 coal mines functioning, "undermines the assumptions of Bogdanka's strategy," the company said in a statement. It said it plans to review its strategy for 2013-2020.

That release accompanied 2014 results, which saw revenues up "despite tough market conditions". Revenues from sales were over PLN2bn (€484mn), that is 6% up year on year. EBITDA was almost PLN750mn, with net profit PLN272mn.

In the fourth quarter, coal production totalled 2.6mn tonnes, a company record signifying growth of 21.5%. Coal production in 2014 was 9.2mn tonnes, up 10.1% year on year.

Output in 2015 is expected around the same level the company said. At the same time, Bogdanka forecasts spending will fall to around PLN581mn from PLN803mn in 2014.

BZWBK's Pawel Puchalski told PAP that there are two main negative factors at work. "The first is guidance for coal output in 2015 below 10mn tonnes, and the second is that every contract for coal supplies may be terminated," the analyst said.

Bogdanka will build a "safe" 2014 dividend proposal with an eye on the weakening market, CEO Zbigniew Stopa told the newswire. "The dividend isn't determined by the past, but the future and how the firm will function in 2015," he said. "We also look to 2016 with concern for what will happen on the market. We have lower volumes than we had assumed."

 

 

 

Related Articles

Poland increases stake in state-controlled PKN Orlen

PERN, the Polish state-owned company managing the country’s network of crude oil pipelines, has bought a 4.9% stake in state-controlled oil and gas group PKN Orlen, the ministry of energy announced ... more

Czech CPI buys huge Central European retail portfolio

Czech real estate investor CPI Group has bought a large portfolio of Central European retail assets, local media reported on January 17. The investor, which has grown its holdings rapidly since ... more

Speculation over a second downgrade grows as S&P drops outlook on Polish economy

Speculation that Poland could suffer a second downgrade of its sovereign rating at the end of the week intensified on January 10, as Standard & Poor’s lowered its estimates on economic growth. ... ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss