The JSW Group closed Q1 2018 with a net profit of PLN 757.9 million, i.e. a level slightly higher than in the preceding quarter. In the first three months of this year the Group produced 4.1 mt of coal, up by more than 18% and 0.9 mt of coke, signifying nearly 7% growth compared to the previous quarter.
“These results allow us to gaze into the future with optimism. We intend to strengthen JSW’s position constantly, and that is something we will do, with JSW as a leader in the production and sales of top quality coking coal. According to the strategy we have adopted, we will continue to invest in the deposits that are currently available and we will enlarge our resource base, especially of coking coal because this is the raw material on which we are basing the future of Jastrzębska Spółka Węglowa”, said Daniel Ozon, CEO of JSW and added: “JSW’s regular, planned development is being pursued while following rigorous procedures to ensure occupational safety, a key priority in the Company’s operations, for me and the Management Board alike. According to the targets in JSW’s strategy, we are introducing modern solutions and equipment to contribute to enhancing safety and production efficiency. We are working on improving the underground communication system and we are constantly developing the Sophisticated Data Research Center (CZAD). This modern center will make it possible to track in real time the operating parameters of machinery and devices used in processes related to coal cutting, coal haulage and transport and preparation of the work front, as well as in the other most important processes to enhance the safety of mine crews.”
In the period from 1 January to 31 March 2018 coal sales to external clients climbed by more than 14% to PLN 2,768.3 thous. tons compared to Q4 2017. The average sales price for coking coal to external clients rose 7% to PLN 682.50 per ton. In turn, coal sales revenues to external clients shot up 24.6% to PLN 1,419.8 million.
In comparison with the preceding quarter, coke sales to external customers dipped by 4.8% to 849 thous. tons. The average coke sales price rose 8.5% to PLN 1,052.10 per ton. The sales revenues on coke and hydrocarbons to external customers edged up by 4.1% to PLN 1,029.9 million in the first quarter of this year. Market determinants exerted a considerable impact on the level of prices commanded by the JSW Group.
As a result of the upswing in the average prices of coal and coke and in the higher volume of coal sales in Q1 2018, we generated revenues of PLN 2,510.6 million, up PLN 317.8 million compared to the previous quarter.
The Q1 sales results translated into the JSW Group generating a high level of EBITDA totaling PLN 1,135.8 million in the first three months of 2018, up 1.5% compared to the previous quarter.