Despite a lower coal output, caused by various factors, including mining accidents in the Pniówek and Zofiówka mines which took place in April 2022, the JSW Group improved its financial performance.
“The JSW Group keeps demonstrating its ability to operate in a changing and surprising market environment,” says Tomasz Cudny, President of the JSW S.A. Management Board. “The recent unexpected geopolitical changes have greatly complicated the situation not only in Europe, but also across the globe. Since the outset, JSW has been focused on building long-term relationships with our partners, enabling us to operate and generate profits in a volatile environment. Above all, we want to be perceived as a stable strategic supplier both within Europe and beyond, regardless of what the market situation may be at the moment. Since mid-2021, we have been dealing with supply challenges on the global coking coal market and with high prices of this commodity. The war in Ukraine has exacerbated concerns about the availability of raw materials, providing an impetus to additional price increases. Periodic strong upward and downward shifts in prices are part of the market environment for JSW’s business, meaning that we keep dealing with them regularly and are fully aware of their inevitability. This is one of the reasons why we have established a Closed-End Investment Fund in which we systematically invest our surplus funds. These investments provide the Group with financial security when the tide turns and times become tougher,” adds the JSW President.
In 2Q22, the price for coking coal obtained by JSW averaged PLN 1923.63 per tonne, or more than 40% above that obtained in the previous quarter. In turn, the average coke price in 2Q22 was PLN 2670.57 per tonne, up by over 35%. As a result, sales revenues in 2Q22 were higher by over 21% compared to 1Q22 and reached PLN 5.97 billion.
In the period under analysis, JSW’s mines produced 3.40 million t of coal in total (including 2.7 million t of coking coal), down 9.7%. Coke production in 2Q22 was slightly higher than in the previous quarter and stood at 0.88 million t. The total sales of coal extracted in the Group’s mines stood at 3.58 million t, down 11.7% compared to the previous quarter. In the reporting period, sales of coke to external recipients were lower by more than 12%, having reached 0.82 million t in total.
In 2Q22, the JSW Group spent PLN 605 million on capital expenditures on a cash basis. This is more by 11.8% than in 1Q22. Modernisation of coke oven battery no. 4 at the Przyjazn Coking Plant is the JSW Group’s flagship capital expenditure project.
Read the article online at: https://www.worldcoal.com/coal/05092022/the-jsw-group-breaks-its-record-high-results/