KHW reduces loss per tonne of coal, but it is not able to handle the debt – portal wnp.pl

Katowice Coal Holding (KHW) will decrease this year to approx. 8 zł loss to one tonne of carbon, compared to nearly 23 zł loss last year. Despite the improvement, the company is unable to service their debt and needs further restructuring – gave the president KHW Zygmunt Łukaszczyk.

He recalled that in the frames of the two years the recovery program, the company managed to save approx. 590 million zł (approx. 50 zł per each ton of carbon), on a scale of approx. 3.6 billion zł sales revenue. But this is not enough for a company to be able to handle their debt under the bond.

In the past, holding company issued bonds with a total value of approx. 1.2 billion zł; the culmination of the repayment falls for two years. “The balloon is a bond in 2018; hence we have 1.5-2 years to do the next step of the restructuring,” – said Łukaszczyk.

He recalled that in order to handle the current debt holding requires approx. 500 million zł capital – the amount allocated, among others, for investments to improve the efficiency and effectiveness of production. The Board is preparing a revised recovery program, which assumptions are ready, but still require consultation with the owner, the social side and potential investors.

Łukaszczyk confirmed that Enea and Węglokoks – the company, which declared earlier participation in the restructuring program KHW – are currently holding the internal audit, which is a form of due diligence, or research the condition of the company. CEO believes that the future holding, with the support of both investors, could become part of a larger body under the working name of Polish Coal Holding.

According to Łukaszczyka, mines should prepare for “bad scenario”, providing a further decline in coal prices. The company undertakes among others measures to increase labor productivity. According to the President, improving the efficiency of approx. 23-25 ​​tons per person per year would guarantee operational profitability even at current low price of coal. Ultimately KHW wants to improve the performance of up to approx. 800 tons per employee, compared to 680 tonnes in the previous year. Performance planned for 2016. Is an average of 764 tons per employee.

According to Łukaszczyka, KHW achieved this year, the result of better than expected plan, including by increasing participation in the production and sale of so-called. coarse coal and secondary education, reaching significantly higher prices of energy fines. “If this part, now of approx. 23 per cent., Still managed to increase, there is a chance that at the end of the year the operating result to achieve a positive result,” – said the president of the holding company.