Poland’s most worthwhile coal producer Lubelski Wegiel Bogdanka SA stated it was compelled to write down off $305 million from the worth of its belongings as wind and solar energy are pushing the soiled gasoline out of the market.
Bogdanka, managed by state-run utility Enea SA, stated the 1.17 billion zloty ($305 million) provision comes amid “dynamic modifications” on the home coal market with a “clear development” of rising renewable capability, based on a press release launched on Tuesday. The miner’s revenue, which final 12 months virtually tripled to a document of 687 million zloty on excessive coal costs, is ready to shrink significantly in 2024, even earlier than the write-off, based on analyst estimates.
Poland’s new authorities has been touting clear energy, however is but to publish an official vitality coverage setting precise targets for this and subsequent decade. Nonetheless, the share of coal-based electrical energy output within the nation’s combine has already declined to about 66% final 12 months from greater than 70% a 12 months earlier as electrical energy producers make investments closely in photovoltaic and wind farms.
The squeeze for coal is ready to extend in coming years as first offshore wind generators come on-line, whereas utilities full constructing gas-fired items. Subsequent decade, the nation additionally plans to begin its first nuclear energy plant because it’s aiming to fulfill the European Union’s local weather neutrality objective by mid-century.
Warsaw-listed Bogdanka stated it plans to regulate its technique to new circumstances by the top of 2024. The shares have plummeted 27% to this point this 12 months, giving it a market valuation of 846 million zloty. The WIG20 Index rose 1.4% in the identical interval.
(By Maciej Martewicz)