JSW closed 2024 with a loss of PLN 7.3 billion. “Not very flexible business model”

The JSW capital group closed 2024 with a net loss of PLN 7.3 billion – the company said on Tuesday. She added that despite adverse factors, 12.3 million tons of coal were extracted in the company's mines.

The JSW capital group announced that last year it recorded PLN 7.3 billion net loss against less than a billion profit a year earlier. This result was mainly influenced by the intake of a copy of the value of non -financial fixed assets in a total amount of PLN 6.4 billion. EBITDA for 2024 without one -off events was at the level of PLN 396 million.

JSW explained in a statement that adverse geological conditions, as well as unforeseen operating events, had a decrease in production. “This means that in 2024 the plants included in the GK JSW produced 9.3 % less coal and 8.6 percent less coke compared to 2023. The production amounted to over 12 million tons of coal and 3 million tons of coke respectively, respectively,” the company said.

JSW also noted that market conditions in 2024 did not allow to compensate for the loss of revenues from less production. She pointed out that a decrease in coking coal ratings Hard by nearly 19 percent. compared to 2023 and a decrease in energy coal ratings on the domestic market by over 30 percent. influenced the average price of coal produced in total in JSW, which amounted to PLN 899.28 per ton, 20 percent. Below the price obtained in 2023. The decrease also concerned the price of coke, which reached PLN 1,302.80 per ton, 13.2 percent. less than last year.

The announcement added that the lower volume of production and a decrease in prices had a decrease in revenues in the JSW capital group in 2024, which amounted to over PLN 11.3 billion. Comparing year to year, it is a value lower by 26.2 percent.

“The model of the company's activity we found in May 2024 was not very flexible, especially in the area of ​​costs, which had a direct impact on the occurring problems,” said JSW SA President Ryszard Janta quoted in the communiqué. “In the face of these challenges, we took immediate action to stabilize the situation of the group. We have developed a strategic transformation plan, which we have been consistently implementing since November last year” – he emphasized. The president reminded that the plan assumes the implementation of activities in four key areas of our activity: improvement of mining efficiency, optimization of purchasing processes, rationalization of investment expenditure and optimization of support functions. “The assumed effects from PST will allow further development, increase in extraction and stable operation of the company in subsequent years,” Janta assessed.

The company assured that despite adverse macroeconomic conditions, it continues strategic investments for its further development, such as modernization of the Mechanical Removement Plant in the Mine, Deepening of Shade III in the Pniówek Mine or the expansion of the surface of the central air conditioning station at the Budryk mine.

JWS indicated that expenditure on investments in cash in the JSW capital group reached PLN 4.1 billion. She also emphasized that when thinking about the development of the group at the beginning of 2025, the company submitted a request to obtain a research license to recognize the “Dębieńsko 1” deposit and an application for extending the concession for the extraction of hard coal and methane as a mineral accompanying the “Borynia” deposit until 2042.

“In the activities of the company, employees' safety also remains a priority – last year JSW SA allocated over PLN 1.6 billion for prevention in the field of occupational health and safety, while almost PLN 190 million was allocated to pro -environmental activities” – added the company.

At the end of December 2024, the JSW Capital Group employed 32,315 employees. There were 21,321 people in the Jastrzębska Spółka Węglowa company.

The JSW Capital Group is the largest producer of high coal coal in the European Union and a significant coke manufacturer, raw materials used for steel production.

The company said that in 2024 coal coal for the fourth time obtained the status of a critical raw material for the European economy, and thus having great economic importance with the risk of interrupting deliveries due to the high concentration of their production outside the European Union. (PAP)

AB/ Drag/