LW BOGDANKA H1 2016 RESULTS

Lublin Coal Basin-based producer recorded 75m PLN net profit in first six months of 2016, which is only 500k PLN less than in the same period last year. Income (849m PLN) was 5m PLN more than in H1 2015. The results met with expectations.

In the first six months of 2016 LWB produced 4.285m Mt of steam coal (10% more YOY). The company still plans to reach 8.5-9m Mt of coal produced by the end of 2016. In H1 2016 LWB sold 4.379m Mt, 2.184m Mt in Q1 and 2.195m Mt in Q2. By the end of July Bogdanka had 134k Mt of coal reserves (228k Mt by the end of 2015), but plans to increase it to 150-250k Mt till December.

As much as we don’t believe in it, LW Bogdanka is still trying to increase its activities on the Ukrainian market. The main issue, right after unmatching coal parameters, will surely be Ukrainian problem with regular payments.

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