– End with the ability to continue operations without additional capital injection, the so-called. equity, rescue liquidity. We were able to survive significantly longer than planned, but end business rescue capabilities liquidity. Investors must enter to make this project viable and we can continue to restructure – said the president of KW during Thursday’s press conference in Katowice.
On Monday, the Treasury announced that the emergence of the New Coal Company, which will take over some of the mines of the Coal Company and ensure their continued operation is planned for the middle of August and that just shutoff is the process of ensuring the financing of the company. Earlier, Deputy Minister of Treasury and government plenipotentiary for the restructuring of coal mining Wojciech Kowalczyk announced that the company may start work in late June and early July. In mid-June it was cited as the deadline for a breakthrough in July and August.
President Sędzikowski added that talks with investors are advanced.
– This is a very intense process of due diligence by investors, ie. due diligence. We were prepared for it, there are many documents, it goes quickly, I am optimistic. This gives huge chances that in August will be New Coal Company, and that investors make offers, we conclude all necessary agreements in this process and we will do it – he said.
Sędzikowski stated that the company will require additional 1.5 billion zł, and not as previously assumed 2 billion zł. – 800 million this year, 700 million by the end of the first quarter of next year, less than previously expected. This smaller amount due to the more precise calculations. The business was done at a very fast pace, so we have a more precise calculation, but also made some changes in the business, reduced costs – he said.
Financial results better than planned
The President also announced that the restructuring process is going well KW. The financial results achieved in the first half of the year are – as he said – much better than planned and closer to the goal of more than 2 billion zł EBITDA with sales of over 28 million per year for so-called carbon. New Coal Company in 2017.
In the first half KW generated net EBITDA of 240.4 million zł, higher than the planned 21 million zł. Sales of coal in the first half of the year amounted to 14.8 million tons of coal and gave revenues higher than planned 138 million zł. Domestic and foreign sales were higher by 4 percent. and 17.2 per cent., while the coal inventories was lower than assumed by 18 percent. and is currently approx. 3 million tonnes.
– The restructuring process is progressing well, operationally improving their performance, especially unit costs. I can say that KW, and especially New Coal Company is neither dead nor Titanic, – said the president.
Referring to the difficult situation KW, which was threatened with bankruptcy recent months, President estimated that over the last 1.5 years the worst was the first quarter of this year. – You could say that the company collided with their piles of coal – unit costs, fixed costs have begun to destroy the result, but started activities, sales heaps, given at the moment a very good effect – he said.
According to him, inventories are now below 3 million tonnes, against 6.9 million tonnes at the end of the first quarter. For optimal, “technological” recognized stock size up to 1 million tonnes.
Allegations of coal sales below the cost of extraction
Sędzikowski referred to the allegations competition, leading to the decisions of the Office of Competition and Consumer Protection. The Company Lublin Coal Bogdanka SA reported to the office that violate antitrust law KW through the sale of carbon below extraction costs and cover funds transferred as part of illegal public aid understate the difference between price and cost of mining at the company.
However, UOKiK decided that after analyzing the complaint that pricing policies Coal Company does not constitute the practice of restricting competition does not hold a dominant position on the market and used its rates are the result of market strategy during the crisis.
The CEO of KW, it is in this company struck most problems Polish producers. – At the same time it dropped the price of coal on world markets and the demand for coal. Lower prices affected all producers of coal, the second element, often more dangerous – put the decline in demand in one company. () KW reached on piles of inventory in the amount of 20 percent. annual production is morbid high level, while our competitors was from a few percent to 10-11. We buffer the crisis by selling stocks took our this crisis – he explained.
He added that the board does not assume the plan for the next years increase in prices, hopes to increase sales, also wants to offer coal with transport service, which will negotiate more favorable rates.
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