KOMPANIA WEGLOWA: WOLF FULL, LAMB SAVED

Paraphrased Polish proverb, which means the same as English “to kill two birds with one stone” is a good metaphor of what was done last year with Kompania Weglowa, which at an edge of bankruptcy managed to sell in advance coal for 727m PLN. With increasing coal prices on international markets, entities which took part in it could feel like winners.

In Polska Grupa Górnicza Management Board’s report for recent year we can find many useful information on the issue of the process of saving Kompania Weglowa, PGG’s predecessor. From the document we know, which companies were prepaying for KW’s coal (273m PLN). Turns out that they were all state-owned, most probably kindly asked to do so by the Ministry of Treasury (during PO’s reign) and Ministry of Energy (PiS). Bellow you can find the chart with full list, dates and amounts (m PLN):

sav

Private companies also took part in saving private Ry… Kompania Weglowa, but on the terms of so called “deposit sales”, which means that the purchased coal stocked on the piles was physically separated from the rest and then KW was charging buyers for storing it on its storage yards. Again, bellow you can find the chart with full list, dates and amounts (m PLN):

przed2

As the contracts were made for long-term deliveries, companies that bought it on the last years (April-December) prices can feel like winners now, as the international indices are running sky high: CIF ARA marker increased in October 2016 by 20 USD/Mt YOY.

Advertisements