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FAMUR reports over 67 million net profit for first nine months of 2016

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World Coal,

For the first nine months of 2016, FAMUR Group achieved a consolidated sales revenue of PLN 724.9 million – a 17.8% increase in comparison with the same period in 2015. The net profit of the Group amounted to PLN 67.7 million (up by 51% compared to three quarters of 2015) and EBITDA amounted to PLN 176.6 million.

In 3Q16, FAMUR achieved a consolidated sales revenue exceeding PLN 225 million – an increase by 26% (PLN 47 million) as compared with the corresponding period of the previous year. The execution of longwall shearer and road header lease agreements, as well as, overhauls and modernisations of power supports and scraper conveyors had the most significant impact on revenues. Moreover, the execution of the contract for the delivery of a mechanised longwall unit to the Imbat coal mine in Turkey, export sales of longwall shearers and the implementation of orders for Polish power plants also had an essential impact on the level of revenue.

The increase of revenue for the nine months of 2016 applies both to foreign, as well as, domestic sale. Export sales in this period reached PLN 239 million, indicating a growth dynamics of 37% compared with the corresponding period of 2015. The share of export in sales revenue amounted to 32.9%. According to FAMUR, this result is a consequence of executing the development strategy of the group based on the Go Global foreign expansion scheme. Under this scheme, the company executes orders for clients from the CIS countries, in particular from Russia and from Kazakhstan. It also strengthens its position at the Asian markets, among others, in Indonesia, India and Vietnam and also in South America, the Balcans, in Turkey and in the Middle East.

After the three quarters of 2016, the sales revenue on the domestic market amounted to PLN 486.3 million – an increase of 12.7% in comparison with the same period the previous year. Its present share in the total revenue of the FAMUR Group amounts to 67.1%. Contracts executed by FAMUR FAMAK S.A., in particular the construction and production of carbonising and skimming systems for the power plants in Kozienice and in Opole, had a key impact on the level of domestic sales.

FAMUR Group consequently increased its share of revenues from the Surface sector, which consists of solutions for the opencast mining, mining services, as well as machinery and equipment for the power industry. During the nine months of 2016, sales revenue in this segment amounted to PLN 202.1 million (a 116% increase compared to the three quarters of 2015). Thus, the share of revenues from this sector in the total sales revenue increased in comparable periods from 15% to 28%. FAMUR repots this result to be a consequence of the implemented diversification strategy of the business activity in the group beyond the activity related only to underground mining. Thanks to this strategy, the company strengthens its position in the electromechanical industry, in particular, in the field of opencast mining and the energy sector.

In the first nine months of 2016, the Underground segment, which covers solutions for underground mining, had the largest impact on total sales revenue, generating PLN 522.8 million (72.1% of the total sales revenue).

In the corresponding period of the previous year, this share amounted to 85%. Foreign contracts, the sale of new and the modernsation of the existing mine roof support sections, the production of gearboxes for lignite coal mines, as well as, the sale and lease of combined cutter loaders together with the service are all factors that contributed to this large impact on the result of the underground mining sector.

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