POLISH COAL MARKET MIDWEEK SUMMARY 9/2016

By 11th March we shall find out more details about the actual condition of Kompania Weglowa, as the audit team working there since mid February will conclude their research. Right after they’re done with KW, they will proceed to Katowicki Holding Weglowy and Jastrzebska Spolka Weglowa and should finish by 31st March. Audit is suppose to throw some light on the issue of how bad really is it and what should we do to fix this. Better late than never.

Marek Woszczyk, CEO of the largest Polish power producer followed the path of Krzysztof Sedzikowski, former CEO of largest Polish coal producer in becoming “the former CEO”. His seat will most probably be taken soon by Henryk Baranowski, who just resigned from his deputy minister position in Ministry of Treasury. Baranowski was a hot-tip for the position already in December, but apparently Woszczyk had to take a role of Wicked Messenger, as he announced two weeks ago that the company for the first time in its history recorded a loss.

Speaking of loss: no surprise in JSW, trying hard to get back on its feet. Although the revenue increased by 120m PLN YOY, the total loss for 2015 reached 3bn PLN (increased 5 times YOY!). To be fair and not making fuss of it – 2.7bn of that was taken by revaluation of assets.

The agreement for coal deliveries to Kozienice power plant in 2016 between Bogdanka and Enea, that was terminated in August and started the quick process of renationalization of LZW producer was signed once again. Total value was estimated for 760m PLN (around 6m less than the contract for deliveries in 2015).

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