The JSW Group’s EBITDA in 2017 shot up to PLN 3.9 billion, i.e. nearly 270% compared to 2016. High commodity prices above all were conducive to such good financial results. It’s noteworthy that the average coking coal price for external clients was PLN 656.70 per ton, i.e. 65% higher than in 2016. The average coke price grew 60% to PLN 936.01 per ton.
“We find our 2017 results to be satisfactory, but I would like to point out that we function on a cyclical and volatile market. To gaze further into the future with boldness, we must pursue the directions for the Company’s development as adopted at the end of 2017 in the document entitled ‘Jastrzębska Spółka Węglowa S.A.’s Strategy including the JSW Group’s Subsidiaries in 2018-2030’”, said Daniel Ozon, CEO of JSW. “JSW’s Growth-driven Strategy designates the most important directions for the JSW Group’s organic development. Ambitious investment plans and innovative solutions enhancing efficiency will enable the Company to ramp up the production of coking coal to 85% of total coal production in subsequent years while stabilizing coke production, and consequently enable it to generate optimum financial performance.
In 2017, JSW’s mines produced 14.8 million tons of coal, consisting of 10.7 million tons of coking coal and 4.1 million tons of steam coal; in turn, coke production totaled 3.5 million tons. The unit mining cash cost in 2017 was PLN 312.54 per ton, i.e. 24.3% higher than in 2016, due to higher capital expenditures for coal production, including PLN 507.9 million in additional employee benefits. If they are netted out, then the mining cash cost was PLN 278.14 per ton.
Last year’s revenues on coal sales totaled PLN 4.9 billion. They were up 38% compared to 2016. The revenues on the sales of coke and hydrocarbons also rose. In the period under analysis, they totaled PLN 3.7 billion and were 30% higher than in 2016.
It should be added that in 2017 the Company significantly scaled back its debt. It redeemed bonds with a total value of PLN 419.5 million and USD 64 million. Another important event was JSW’s formation of a closed-end investment fund whose purpose is to provide stabilization support for the Company’s current liquidity and maintain the continuity of operational and investment processes during potential market downturns.
The JSW Group continues to be one of the largest employers in Poland. It has nearly 26.5 thousand employees, with nearly 21 thousand people employed in Jastrzębska Spółka Węglowa alone.