This was 13.2% lower than in the second quarter of the year. EBITDA was PLN 220.6 million (PLN 351.1 million in the previous quarter). In the third quarter, the group recorded a loss of PLN 97.5 million (profit of PLN 27.5 million in the second quarter). Year-to-date, after three quarters of the year, the Group remains profitable with a net profit of PLN 75.4 million.
After 9 months of 2013, sales revenues were PLN 5,790.7 million, i.e. 16.3% lower than in the same period of the previous year. EBITDA was PLN 1,062.5 million (compared to PLN 2,132.3 million after 9 months of 2012). During the first 9 months of this year, the Company allocated PLN 1,272.7 million to investments. This was 1.2% lower than in the same period of 2012, when it spent PLN 1,288 million on investments.
Coal production in Q3 was just 0.8% lower than in the second quarter. On the other hand, coke production recorded a 16.2% drop vis-a-vis the previous quarter.
„Third quarter performance shows how the challenging situation on the coal, coke and steel markets affects companies like ours. We are feeling the effects of low benchmark coking coal prices, which fell from USD 172 in Q2 to about USD 145 per ton in Q3. The result was also affected by weak coke sales and the value of the Polish zloty, which was detrimental to exporters. One must remember that not even two years ago, the price of coking coal on global markets was almost USD 300 per ton. Please note however that despite a weak quarter, after 9 months of the year, due to its activity in all areas, the Company generated a positive result and has fulfilled the planned strategic investments, striving to implement them at a lower cost”, says Jarosław Zagórowski, the President of JSW S.A. and adds:
„the fourth quarter will be of key importance for the company. We want to maintain discipline in production, sales and especially in costs. It seems that, barring any unexpected external factors, there is a chance of profit at year-end. We are operating on a market subject to significant price volatility, and therefore changes are part of the profile of our activity”.
The company has maintained its estimates that this year's production of coal may well exceed 13.5 million tons. JSW may fulfill this plan with a slight overrun, despite some problems encountered in Q3 with launching production on a new wall in one of the mines. As a result of efficiency measures implemented since the beginning of the year, the company has managed to reduce the unit cost of coal production (excluding depreciation and labor cost) vis-a-vis 2012.
In the third quarter, coal sales to external buyers were only 2.4% lower than in Q2. Coal sales volume was 2,206.1 thousand tons, compared to 2,260.4 thousand tons in the second quarter. After three quarters, 14.7% more coal was sold than in the same period of 2012.
In Q3, coke sales to external buyers were 8.6% lower than in the second quarter of the year. Coke sales volume was 860.4 thousand tons, compared to 941.8 thousand tons in the second quarter. This resulted mainly from shifting some deliveries from the third to the fourth quarter. On a cumulative basis, after the first three quarters of the year, coke sales were 1.3% higher than during the same nine months of 2012.
In Q3, capital expenditures fell by 3.8% compared to the second quarter. They were PLN 407.0 million, compared to PLN 422.9 million in the previous quarter. After three quarters of this year, capital expenditures are PLN 15.3 million lower than in the same period of 2012.