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FAMUR announce 1H21 and 2Q21 results

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World Coal,

The FAMUR Group's revenues in 2Q21 amounted to PLN 244 million, growing by 9% compared to the same period last year. EBITDA was PLN 70 million, and the EBITDA margin was 29% revenues. The generated net profit reached PLN 22 million. On the other hand, revenues for 1H21 amounted to PLN 518 million and were lower by 9% compared to the comparable period of the previous year. Net profit amounted to PLN 61 million (decrease by PLN 22 million compared to 1H20), EBITDA PLN 161 million (decrease by PLN 57 million compared to 1H20).

The results achieved in recent quarters have remained under the pressure of the tightening decarbonisation policy and the ongoing and felt COVID-19 pandemic. These factors – despite a significant rebound in coal prices on global markets – mean that mining companies continue to limit or postpone previously planned development investments, limiting themselves mainly to replacement expenses. This causes, in the first half of the year, a significant decrease in revenues from the primary market (the largest reduction took place in the category of deliveries of machinery and equipment, i.e. 38% y/y), partially limited by an increase in recurring revenues from aftermarket and leases (increased by approximate percent).

While the coal mining sector in Poland is waiting for the final shape of the restructuring plan, the FAMUR Group maintains export sales at the level of approximately 36% revenues. The largest share in foreign sales invariably comes from the Russian market and the CIS countries, however, the group continues to expand into new markets, an example of which is concluded in August this year: a contract with the American company, Century Mining, for the delivery of a mechanised support worth approximately US$28 million (approximately PLN 111 million) for a metallurgical coal mine. It will be the first direct delivery of this type of equipment to the US.

The main events having a major impact on the future development of the group is the definition of new strategic directions aimed at building a holding investing in green transformation, including by entering the sector of large-scale photovoltaic projects.

The total value of orders obtained from the mining sector in 2Q21 is PLN 135 million, while approximately PLN 200 million is the group's financial commitment (as at 30 June 2021) to the development of the PV segment (project purchases, loans granted to special purpose vehicles, costs incurred for the construction of farms). In the near future, the group also plans to obtain external financing for the development of the PV segment based on available products and financial instruments dedicated to this area.

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