Jastrzebska Spólka Weglowa (JSW) Q2 2024 earnings summary

Executive summary

• H1 2024 saw a sharp downturn, with sales revenues down up to 28.2% year-over-year and a net loss of up to PLN 6,052.2m, driven by lower coal and coke prices, reduced production, and major impairment charges.

• Significant operational incidents, including fires at KWK Budryk and KWK Pniówek mines, reduced production by 850,000 tons and incurred direct costs.

• EBITDA for Q2 2024 was PLN (6,355.2)m, heavily impacted by impairment losses on non-financial non-current assets.

• Major impairment losses were recognized on non-current assets and shares in subsidiaries, reflecting updated forecasts and market conditions.

Financial highlights

• H1 2024 sales revenues ranged from PLN 6,176.3m to PLN 7,899.6m, down from PLN 10,932.3m in H1 2023.

• Net loss for H1 2024 was up to PLN 6,052.2m, compared to a net profit in H1 2023.

• Operating loss reached PLN 6,503.1m, mainly due to impairment losses.

• Cash and cash equivalents at period end were between PLN 1,248.8m and PLN 1,326.9m.

• Net cash from operating activities was PLN 675.3m, a sharp decline from H1 2023.

Outlook and guidance

• Management expects continued cost pressures, challenging market conditions, and ongoing market volatility, but sees no material uncertainty regarding going concern due to liquidity reserves.

• Focus on cost-saving measures, scenario-based planning, and strategic goals for diversification and ESG.