The stabilization fund was established in 2018 to mitigate the impact of product price volatility risk on the company's ability to maintain the continuity of its operating and investing activities, which, like any enterprise operating in the commodity market, is susceptible to business cycles.
Last week, the Company released the JSW Group's estimated results for 2024. The estimated net loss amounted to nearly PLN 7.29 billion, which is mainly due to the recognition in this period of an impairment loss on non-financial non-current assets of JSW and JSW KOKS in the total amount of PLN 6.3 billion.
For many months, JSW's Management Board has been taking a number of measures to secure the company's finances and further its development. At the end of November 2024, a Strategic Transformation Plan was launched at the JSW Group. Thanks to the intensive work of teams made up of the Company's employees implementing a number of initiatives, the company has already begun to see tangible results two months after launching the plan, as reported in a current report dated 7 March 2025. By the end of February, it managed to reduce its capital expenditure plan for 2025 by PLN 1.2 billion, compared to the values planned in mid-2024. Already in the second half of 2024, savings of PLN 80 million were achieved in the procurement area. In January and February 2025, PLN 152 million were saved in procurements, nearly half the amount set in the Strategic Transformation Plan for the full year 2025.
A number of initiatives are being implemented as part of the Plan to improve the utilization of longwall shearers and increase the volume of coking coal mining to 14.5 million tons in 2027.
All activities in four key areas, i.e. improving mining efficiency, optimizing procurement processes, rationalizing capital expenditures and optimizing support functions, are expected to have a positive financial impact on the Company by the end of 2027 and allow for stable operations in the following years.
