Bumech Group, listed on the main WSE market and engaged in the extraction of hard coal at the Silesia mine in Czechowice-Dziedzice, reported for the third quarter of this year 86.7 million PLN in sales revenues and 20.8 million PLN in net loss. After nine months, the Group had aggregated 371.2 million PLN in revenues and 76.7 million PLN in net loss. The decreasing month-on-month sales in the third quarter were one of the reasons for the submission of a restructuring application in the remedial mode by the subsidiary – PG Silesia (PGS), which, despite the difficult situation, continues its operating activity. At the beginning of November, the mining company announced the start of extraction from face 163, with an estimated resources of approximately 861,000 tons of coal.
“The presented results are a consequence of the difficult situation in the market and the occurrence of adverse internal factors. Demand month by month weakened in the third quarter. August and September were the third and second lowest revenue months this year, respectively. Despite the approaching heating season, we did not see a rise in demand until September. This was another impulse for the management board of PG Silesia to submit a restructuring application in the remedial mode. Even though “SILESIA” has taken actions such as cost reduction and change of product assortment, these were not enough to offset the problems,” said Michał Kończak, Vice President of Bumech S.A.
In mid-October, PG Silesia announced its intention to submit a restructuring application. This decision was taken after numerous previous attempts at cost and organizational restructuring, which, however, did not bring the expected results. A significant contribution to the deterioration of the situation was made by both external and internal factors. The PGS Management Board assessed that the restructuring will allow for rebuilding of the company’s stable financial position in the longer term. As a result, on October 24, 2024, PGS filed an application to the court to initiate remedial proceedings. Then, on November 13, the Katowice-East Regional Court appointed a temporary court supervisor (TNS) for the Mining Company Silesia. The task of the TNS is, among others, to assess the situation of PG Silesia by securing and verifying its assets, liabilities, and potential possibilities of carrying out a remediation. The temporary court supervisor will prepare a report for the court, which will contain an assessment of the validity of initiating the restructuring proceedings and an analysis of the possibility of conducting effective restructuring.
Despite the difficult market situation and the submission of a restructuring application, PG Silesia continues its operations. At the beginning of November, PG Silesia announced that it has started mining at face 163 in the seam 315 about 840 meters underground. The extractable coal resources at this face are estimated at 861 thousand tons. Due to the physico-chemical parameters of the coal from this region, including low ash content, low sulfur content and high calorific value, it is classified among the highest class of solid fuels on the market. The exploitation of face 163 is planned for a period of about 9 months, with daily extraction rate reaching from 4,300 to 5,000 tons per day.
“A huge support in the process of reducing energy consumption costs and a pride of the plant is one of the most modern methane recovery stations in the country and a cogeneration engine team for the production of electric and thermal energy from the gas originating from the mine’s methane recovery. Despite the submitted restructuring application, PG Silesia continues mining, with the board looking at the future with cautious optimism,” concluded Michał Kończak, Vice President of PG Silesia Sp. z o.o. and Vice President of Bumech S.A.
Source: https://managerplus.pl/grupa-bumech-slabnacy-popyt-i-sprzedaz-w-iii-kwartale-zlozenie-wniosku-o-restrukturyzacje-i-uruchomienie-eksploatacji-nowej-sciany-45172
