The decision of revising the index was made by the Stock Exchange Index Committee, and the first listing of WIG20 following the inclusion of JSW will take place on 16 September.
JSW will take the place of CEZ in the index of the largest companies listed at the WSE.
“We consider JSW’s entry to the WIG20 to be more than just a point of prestige. It is also an important piece of information for the investors. It is an evidence of the fact that we have fulfilled the expectations placed upon us and, at a record-breaking speed, within a mere month of our debut, the decision was made to introduce JSW shares to the single most important index of the Warsaw Stock Exchange. It also serves as a confirmation of the liquidity of JSW shares and I hope that in the future this will also be reflected by the value of sales,” said Jarosław Zagórowski, the President of the Management Board of Jastrzębska Spółka Węglowa S.A.
This is yet another European stock index to recently include the shares of the European Union’s largest producer of high quality coking coal. On 20 July, only two weeks after JSW’s Warsaw Stock Exchange debut, following an extraordinary revision on the index, JSW shares were also introduced into the prestigious MSCI Poland Standard Index.
Additional Information on the JSW Capital Group
The JSW Group is the largest producer of high quality type 35 (hard) coking coal and an important producer of coke in the European Union.
- JSW’s coking coal is used chiefly in the production of coke, which is, apart from iron ore, the key ingredient of the charge for manufacturing steel.
- The Company is also a producer of power coal, sold mainly to power plants and heat and power plants.
JSW combines 5 hard coal mines: Borynia-Zofiówka, Budryk, Jas-Mos, Krupiński, and Pniówek, which extract coking coal and power coal. The JSW Group’s largest companies include Koksownia Przyjaźń and Kombinat Koksochemiczny Zabrze, whose core business is coke production.
The long-term objectives include the centralisation of sales, marketing, and logistics for all of the Group's products.
In 2010, JSW mines extracted 9.1 million tonnes of coking coal (including 7.7 million tonnes of type 35 coking coal) and 4.2 million tonnes of power coal. In 2010, Koksownia Przyjaźń produced 2.6 million tonnes of coke, and KK Zabrze produced 1.2 million tonnes. Koksownia Przyjaźń and KK Zabrze produce chiefly metallurgical coke.
JSW mines are in the possession of approx. 552 million tonnes of operating reserves of coal, but the Group intends to increase the reserve base, which should enable JSW to maintain a strong position in international coal markets for the next 60 years.
JSW’s extraction area is located in the Upper Silesia Coal Basin. The Group’s products are chosen by customers in Poland, as well as Germany, Austria, the Czech Republic, Slovakia, Romania, and Hungary. Among the largest external recipients of coking coal offered by the Group are ArcelorMittal Poland, Kombinat Koksochemiczny Zabrze, U.S. Steel Kosice, Węglokoks, voestalpine Stahl, Wałbrzyskie Zakłady Koksownicze Victoria, Koksownia Częstochowa Nowa and Moravia Steel. Aside from external recipients, the largest portion of the coal sold by the Group is supplied to Koksownia Przyjaźń for use in the Group’s coking operations.
JSW’s strategy assumes utilisation of new coal deposits located at greater depths in the existing mines (vertical expansion), accessing deposits in areas adjacent to the current extraction operations (horizontal expansion), and seeking out new deposits. The Group intends to continue to strengthen its position as an independent supplier of coke to the EU and global markets, and to increase the production capacity of its coking plants, as well as increase the use of coal extraction by-products. JSW also conducts activities aimed at improving the safety and efficiency of the Group’s operations.
In 2010 the JSW Group’s sales revenue amounted to PLN 7,288.9 million and increased by 63% in comparison to 2009 results. EBITDA (operational profit increased by amortisation) for 2010 amounted to PLN 2 770.5 million, as compared to PLN 33.7 million for 2009. In 2010, the Group generated PLN 1,502 million of net profit, and the year before it generated a loss of PLN 669 million. The positive trends continued in the first quarter of 2011. The revenue on sales reached PLN 2,267.2 million, that is 53% more than in the corresponding period of the previous year. EBITDA increased to approx. PLN 990 million, and the net profit grew to more than PLN 619 million.
At the end of 2010 the Group employed over 26.1 thousand employees, with the majority employed at JSW (over 22.6 thousand) and in Koksownia Przyjaźń (over 1.7 thousand).
In case of any additional questions, please contact us:
Łukasz Wójcik
NBS Communications
tel: 22 826 74 18
e-mail: lwojcik@nbs.com.pl