Poland’s JSW ended the first half of the year with a loss of PLN 2.08 billion

The result was affected by a fire at a mine, falling coal prices, and unfavorable exchange rates

Jastrzębska Spółka Węglowa (JSW), Europe’s largest coking coal producer, recorded a net loss of PLN 2.08 billion in the first half of 2025, according to a press release from the company.

The decisive factor was the write-off of PLN 648 million in assets in connection with the January fire at the Knurów-Szczygłowice mine. In addition, the financial result was affected by falling global prices for coking coal and unfavorable currency fluctuations, which led to a decrease in sales revenue.

EBITDA excluding one-off factors amounted to minus PLN 911.4 million, while a year ago the company reported a profit of over PLN 829 million.

At the same time, coal production in January-June increased by more than 3% y/y – to 6.2 million tons, but coke output decreased by more than 9% y/y – to 1.4 million tons. Coal sales increased by 15.4% y/y – to 4.1 million tons, while coke sales decreased by 15% y/y – to 1.5 million tons.

The key problem was a sharp drop in prices: the average price of coking coal fell by 29% y/y, and coke by 24% y/y. This reduced revenue to PLN 4.7 billion, almost a quarter less than last year.

According to JSW CEO Ryszard Janta, the company is facing an extremely difficult market environment caused by protectionism, weakness in the European and global steel sector, growth in imports of cheap steel from China, and increased supplies of Indonesian coke.

To stabilize its finances, JSW continues to implement its Strategic Transformation Plan, which has already saved nearly PLN 1.9 billion in purchases and investments. The company has also agreed with ZUS to defer social security contributions, is demanding a refund of PLN 1.6 billion in solidarity tax, and is negotiating with banks for more flexible financing.

In August, JSW received an official decision to extend its license to extract hard coal and methane from the Borynia deposit until the end of 2042. The decision ensures the stability of the mine’s operations and the development of the region for 17 years. Its reserves are estimated at nearly 40 million tons of high-quality coking coal and over 80 million cubic meters of methane.