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Bogdanka coal now eyes 2015 production at 8.5 mln tons & PLN 460 mln group capex

TAG'S: BOGDANKA, Energy

  Listed coal miner Bogdanka sees no end in sight to coal market problems and will likely cut production by 7.5% in 2015 to 8.5 mln tons and hold CAPEX to PLN 440 - 460 mln, the firm said part and parcel with a cut to dividend plans.

 

The cut in output comes from "an increasingly difficult market situation tied to continued significant price pressure stemming from oversupply on the Polish market and aggressive pricing from the government-subsidized Kompania Weglowa," Bogdanka management said.

 

Bogdanka will respond with restructuring to include job cuts, outsourcing, a hold on unit production costs and the CAPEX cuts to the PLN 440-460 mln level "necessary to maintain continuity of corporate activity."

 

Regarding dividend, the management now eyes allocating PLN 102 mln or 37.5% f 2014 profit, previously recommended as dividend payment, to reserve capital for future dividends and could pay an advance dividend from 2015 profit with the decision to be made by November 30, the filing read.

 

Bogdanka shares are down by 2.4% to PLN 69.78 at 09.37 local time but shortly after the opening they were losing near 7%.

2015-06-11



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