Jastrzebska Spólka Weglowa (JSW) Q4 2024 earnings summary

Executive summary

• 2024 results were heavily impacted by a sharp decline in global coal and coke prices, inflexible cost base, and a PLN 6.3 billion impairment loss on non-current assets.

• Sales revenues declined 26.2% year-over-year to PLN 11,325.8m, with EBITDA (excluding non-recurring events) down 92.8% to PLN 396.0m and a net loss of PLN 7,284.7m compared to a profit of PLN 997.1m in 2023.

• Coal and coke production fell 9.3% and 8.6% year-over-year, respectively, while average prices for coking coal and coke dropped 20.0% and 13.2%.

• Management implemented a Strategic Transformation Plan focused on operational efficiency, cost control, and securing future resource base, with early cost savings and output improvements reported.

• Strategic investments continued in modernization, shaft deepening, and air conditioning at key mines.

Financial highlights

• Sales revenue fell 26% year-over-year to PLN 11.33 billion due to lower prices and volumes.

• Adjusted EBITDA (excluding non-recurring items) was PLN 396 million; net result was a loss of PLN 7.28 billion after impairment.

• Average price of coke and coal dropped 20% year-over-year; coke price down to PLN 1,302/ton.

• Mining cash cost rose 14.8% year-over-year to PLN 804.52/ton; cash conversion cost increased 0.7% to PLN 317.29/ton.

• Cash and cash equivalents at year-end were PLN 885 million; stabilization fund at PLN 1.87 billion.

Outlook and guidance

• Management expects sequential quarterly increases in output in 2025 as mine faces are rebuilt.

• The 2026 production target of 14.5 million tons remains unchanged despite recent accidents.

• Strategic Transformation Plan aims to improve mining efficiency, reduce capital expenditures, and optimize procurement, with projected continued growth and stable operations through 2027.

• Early effects include PLN 1.2bn reduction in planned 2025 capital expenditures and PLN 232m in procurement savings in H2 2024 and early 2025.

• No revision to the strategic transformation plan or its financial targets as of now.