In 2022, JSW Group's net profit amounted to PLN 7.6 billion, and in 2021 – PLN 1 billion. It dropped last year to the level it was two years ago, but there is a warning. The second half of the year saw a loss of more than PLN 1 billion, and in the last quarter the net profit was small for this company at PLN 157 million, indicating that it was already balancing on the verge of profitability.
The JSW press release stressed that the financial results were affected by: lower raw material prices, higher production costs and It is subject to a solidarity contribution of PLN 1.6 billion as the only company in Poland.
He also explained that the 24.1% decrease in sales revenue generated in 2022 is primarily a result of lower average coal sales prices, but also lower volume of coal sold and lower revenues from the sale of coke and coal derivatives.
The average price of coke in 2023 was PLN 1,125 per ton (25.6% lower than in 2022.), and coke 1,502 Polish zlotys per ton (31.1% lower than in 2022.).
Salaries at JSW are above PLN 10,000. Polish zloty per hand
However, there is something else that may have an impact on the company's subsequent quarters. It's about hiring and its cost. Employment rose by 1.2 thousand. The number of people year-on-year (+4%) to 31.2 thousand people, and wage costs increased by up to 30%. Up to PLN 7.4 billion. Average salary in the company Exceeded 10 thousand net PLN per month According to our calculations, including prizes.
Read also: Coal prices have bottomed out, and JSW unionists want them higher. Collective conflict
Despite the annual decline in net profit of more than 87%, 2022 was “absolutely exceptional” for this type of business, Pawel Rostkowski, acting president of JSW, noted in the statement.
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He noted that JSW recorded record financial results at the time, benefiting from an unexpected combination of factors that periodically pushed coke prices to unprecedented levels, impossible to replicate under stable market conditions.
Less coke
Moreover, increased employment did not translate into increased production, but rather decreased. According to the company's published annual report, the volume of coal production last year reached 13.5 million tons (down 4% year-on-year)Including 10.9 million tons of coke. This means that the share of coke production reached 80.5%, and the strategic goal from 2026 is 90%. JSW also produced 3.4 million tons of coke (Annual growth of 4.3 percent).
The JSW Management Report for 2023 notes, among other things, that in the coal sector – with 13.5 million tons of coal produced, 13.3 million tons were sold. Sales revenue from external customers amounted to PLN 8.88 billion, and EBITDA exceeded PLN 4.8 billion. Investments in the coal sector exceeded PLN 3.8 billion, including more than PLN 600 million to make new deposits available (PLN 346 million in 2022).
In the coke sector, JSW Group last year produced 3.4 million tons of coke and sold 3.3 million tons. Sales revenue from external customers in this segment amounted to PLN 5.63 billion. Investments in the coke sector amounted to approximately PLN 540 million.
the total Investments in 2023 in the amount of PLN 4.2 billion were 48.3% higher than in the previous year. These were mainly expenses for: mining excavations, mechanized coal processing plants, transportation equipment, modernization of mechanized supports, modernization of coke battery No. 4 at the coke plant in Przyjaźń and environmental protection.
Expenditures on environmental protection in the entire JSW Group amounted to more than PLN 452 million last year and are mainly related to the implementation of the methane emission reduction (REM) programme.
The Group's authorities also noted that last year it was the first entity from the mining sector in Central and Eastern Europe to obtain a “green” loan in the format of a sustainability-linked loan in the amount of PLN 1.65 billion, where the margin of the amount is based on achieving the Sustainable Development Goals. This loan is intended to serve the implementation of JSW's climate transition goals.
In a letter attached to the report, the Acting Chairman of JSW Group summarized that the net profit achieved last year was very good, especially since it was greatly affected by the company’s conversion of what is called a solidarity contribution.
Fires at JSW
Rostkowski also noted that in 2023, JSW was not immune to random events that had an impact on the volume of coal production generated by the group. Among them were: Fire at Kenuru mine in MarchResulting in a decrease in production by 250,000. Tons as well A fire at a Bennovic mine in DecemberWhich, according to estimates, will reduce production this year. With 450 thousand tones.
Read also: Fire fighting works in JSW mine. More than 100 miners were pulled from the dangerous area
The decline in coal production was also due to delays in the firing of the longwall at the Borinia mine and the two longwalls at the Podrick mine.
Jastrzębska Spółka Węglowa is Europe's largest producer of coke, which is used to produce steel.
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