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JSW Group increases net profit in 3Q22

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World Coal,

Jastrzebska Spólka Weglowa (JSW) has maintained its record performance, despite the increasingly difficult market environment, as well as declining coking coal and coke prices on global markets. In 3Q22, the JSW Group posted net profit of PLN 2.15 billion.

In 3Q22, total sales of coal produced in JSW mines reached 3.49 million t, which marked a slight decline from the previous quarter. During the period in question, the prices of coking coal and coke decreased by 18.9% and 10.7%, respectively, compared to the previous quarter. The average price of coking coal was PLN 1560.28/t, while the average price of coke reached PLN 2385.59/t. This caused a 13.8% decline in total sales revenues, which amounted to more than PLN 5.15 billion.

Total coal production in JSW S.A. in 3Q22 was 3.43 million t, (including 2.64 million t of coking coal) and was slightly higher than in the previous quarter.

The production during the first nine months of 2022 grew 4.1% compared to the corresponding period of the previous year. On the other hand, in 3Q22, the production of coke fell by 11.9% down to nearly 0.8 million t.

It is worth noting the 3% quarter on quarter increase in capital expenditures associated with investments made in the JSW Group on a cash basis. They amounted to over PLN 623 million. When comparing the nine month period of 2022 to the corresponding period last year, the increase was 33.1% up to PLN 1.77 billion. The higher capital expenditures are associated, among others, with modernisation of coke oven battery no. 4 at the Przyjazn Coking Plant in Dabrowa Górnicza, construction of a power unit at the Radlin Coking Plant and the purchase of mining equipment and machinery.

Tomasz Cudny, President of the Management Board of JSW S.A., comments:

“The third quarter showed that the company is able to navigate even the very volatile and unpredictable geopolitical environment. We are reaping benefits from our cooperation with all the partners, the trading relationships and the long-term contracts. These factors have minimized the negative consequences of the difficult market conditions. Additionally, after this year’s incidents in JSW mines and after announcing a force majeure event, the company stabilised its overall coal production and financial results in spite of the significant impact on our activities of factors such as growing inflation, rising energy costs, prices of materials and services, and increasing labour costs.

“Despite the difficult geopolitical circumstances, which affected the market for raw materials for the metallurgy sector, we have continued to implement our adopted strategy. It is the investments in mines and coking plants that allow the JSW Group to function efficiently and respond to market needs in the volatile conditions; this is why surplus funds are regularly invested in the closed-end investment fund, which will secure these activities in case of an economic downturn. We attach special importance to climate transition and the role our company plays in this process. Coking coal will remain, for many years to come, an indispensable element in the production of steel, which is important for global transition. We are actively working on reducing our carbon footprint and ultimately on achieving climate neutrality.”

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