Jastrzębska Spółka Węglowa (JSW), a leading coal and coke producer in Poland, reported a significant net loss of PLN 6.062 billion for the first half of 2024, according to the company’s latest financial report. This marks a sharp decline compared to the same period in 2023, when JSW posted a profit of PLN 2.054 billion.
The company’s operating loss for the first half of 2024 reached PLN 6.835 billion, with a notable decrease in sales revenue, down to PLN 6.176 billion from PLN 8.598 billion in 2023. The coal segment incurred a PLN 5.362 billion operating loss, while the coke segment saw a loss of PLN 2.841 billion.
JSW’s production levels remained steady, with its coal mines producing 6 million tons of coal and its coke plants producing 1.6 million tons of coke. Despite this, lower sales prices and high operational costs have put the company under financial strain.
The JSW management has warned of liquidity risks, citing high dependency on volatile coal and coke prices. However, the company is utilizing its Stabilization Fund, which stood at PLN 5.793 billion at the end of June, to mitigate these risks. JSW has also maintained positive cash flows through financing activities, largely from loans.
Management remains cautiously optimistic, considering liquidity risks “acceptable” for now, while continuing efforts to stabilize operations.