Poland’s JSW swings to annual net loss on lower coal prices, weak demand

Polish coal miner JSW swung to a net loss of 7.24 billion zlotys ($1.85 billion) last year from a net profit of 993.9 million zlotys in 2023 due to falling coking coal prices and weaker demand, the company said on Tuesday.

The result was in line with preliminary data reported by the company in early March.

JSW is the European Union’s largest producer of coking coal, which is essential for steel production.

Coking coal is on the EU’s list of critical raw materials because steel is vital for building renewable energy and other infrastructure. The bloc aims to ensure secure and sustainable supply of materials on the list.

In 2024, JSW was hit by falling coking coal prices, weak demand due to lower steel production, and increased competition from non-European suppliers such as China and Indonesia.

The company proposed not paying a dividend for 2024. It stopped paying dividends in 2018.

JSW’s sales revenue dropped to 11.33 billion zlotys last year from 15.34 billion zlotys in 2023, primarily due to lower coal prices and reduced demand.

It reported a loss before interest, taxes, depreciation and amortization of 6.50 billion zlotys for the year, compared with earnings on the same basis of 4.56 billion zlotys in 2023.

($1 = 3.9126 zlotys)

(By Rafal W. Nowak; Editing by Mark Potter)