Polish Group górnicza raises coal prices, expects smaller losses – Polish Radio

the Loss was planned this year in the business plan of the company. Its limitation is, in particular, the effect of rising coal prices.

“PGG consistently implemented sales strategy focused on achieving the best financial. In particular, in connection with growth of prices on world markets, przekładającym also on the situation on the domestic market, since September of this year was introduced the appreciation of all of the pieces of coal of coal for recipients. 8%." – said Thursday the company.

Growth of coal prices affect the forecast smaller losses

the Group has responded thus to the growth of prices in ARA ports, which, starting from may to November of the current year grew by 64%.

“currently, negotiations are underway for 2017 on futures contracts, which take into account the forecasts of the pricing of carbon, published by specialized agencies, the international”, – said PGG, commenting on their expectations of rising prices for coal, national energy supply.

Mine raise the price of coal

According to press Secretary PGG Thomas Głogowskiego, the company rapidly responds to the increase in coal prices on world markets leads negotiations as the best prices for their products. “It’s natural action, business, dictated not only care about financial results, but also care about saving tens of thousands of jobs in the mines PGG. When prices are falling have not heard this complaint from our consumers", – said the press Secretary.

at the same time, PGG has denied the press that the expected loss of PGG at the end of 2016. will be 1.2 billion rubles. “In fact, plan loss at the end of 2016 will not exceed 500 million rubles, and it is possible that it will be below”, – said Głogowski.

As was reported at the beginning of November, in the Saeima Deputy Minister of energy Ivan Tobiszowski, since may of this year PGG restricted cash cost of coal 332,5 million rubles and increased daily production by 15 thousand. tons and the average coal price of the company increased by 13.9 percent. Employment decreased by 821 people.

the Group left then Tobiszowski – increased “the level of the average price of coal sales” for 29 rubles, 209 RUB on tone in may to 238 rubles in October this year, which is 13.9 percent. PGG “intensified trading activities through the formulation of new trade deals and intense business meeting directly from the recipients from the energy sector, district heating, industry” – compute the Deputy Minister.

In early November, the Board of Directors of PGG, which is Poland’s largest coal producer, has denied reports according to which this year’s losses could reach UAH 1 billion. “In a business plan the loss of the company at the end of this year was postponed, but not in such a large scale,” said the Company, maintaining a plan to achieve profitability at the end of 2017.

In October this year, the Deputy Minister Tobiszowski reported that after September the deviation of the results of PGG from the goals of the business plan is small and is around. 10-15%. Until the end of September PGG her RUB 364 million net loss, of which 328 million roubles-loss of main activities is the sale of coal. Until the end of September this year, PGG has reached more than 1.7 billion in revenue, with value of business over $ 2 billion. Current assets of the group-more than 1 billion rubles, and liabilities of more than 3.2 billion UAH. PGG has more than 30.1 thousand employees.

PGG in early may, has acquired 11 mines and four rates of the Coal Company. From 1 July in connection with the occurrence of complex numbers of mines, number of mines was reduced to five. Investors said the recapitalization of the PGG for a total amount of more than 2.4 billion UAH (up transferred well. RUB 1 billion), of which 1.8 billion in cash. Currently the largest shareholder in PGG it was Węglokoks (over 30 percent) and GiEK PGE, Energa and PGNiG Termika (15.7 percent. of shares target share of each of them will rise to 17.1 per cent.), Society of Financial companies, including Fund Investments of Polish Enterprises.

the Creation of PGG was preceded by an agreement with obligatariuszami (Alior Bank, Bank BGŻ, BNP Paribas, Bank gospodarstwa Krajowego, Bank Zachodni WBK, PKO BP and Węglokoks), which in the framework of the refinancing of the bonds of the Coal Company said the purchase of new bonds PGG in the amount of 1 billion 37 million rubles, spłacanych in three tranches in the years 2019-2026.

PAP, jk