restructuring of the polish hard coal industry być może ta prezentacja wywoła dyskusję, z...
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• Viable reserves 15 200 mln ton
• Industrial reserves 6 800 mln ton
• Operational reserves 4 800 mln ton
• Easily accessible reserves 2 600 mln ton
HARD COAL RESERVES in POLAND as on 31.12.2003
STAGESSTAGESIN IN RESTRUCTURINGRESTRUCTURINGOF POLISH HARD COAL INDUSTRY OF POLISH HARD COAL INDUSTRY
I I -- stage covering 1989 stage covering 1989÷÷1993,1993, II II - - stage during 1994stage during 1994÷÷1995,1995,IIIIII - - stage covering 199 stage covering 1996÷6÷1997,1997,IV IV - - stage from 1998 till present.stage from 1998 till present.
Hard coal productionHard coal production in 2003 – 100,4 m tones
147,
4
140,
1
131,
3
130,
2
132,
7
135,
3
136,
2
137,
1
116,
0
109,
2
102,
2
102,
8
102,
1
0
20
40
60
80
100
120
140
160
180
200
[ m to
nes
]
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
Domestic sale of hard coal in years 1990 – 2003 and domestic sale trend
SITUATION ON THE DOMESTIC HARD COAL MARKET
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
116.5 117.2 107.5 106.8 101.8 99.1 104.5 102.0 86.6 83.5 77.9 79.2 77.1 78.5
[ m tones ]
0,0
20,0
40,0
60,0
80,0
100,0
120,0
140,0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
domestic sale domestic sale trend
Number of active mines of hard coal In 2003 – 40 mines
70 70 70 68 6865 63
57 5349 47
42 41
0
10
20
30
40
50
60
70
80
90
100
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002*
Employment in hard coal industryIn 2003 – 136,5 [thousand pers.]
41
5,9
38
7,9
35
2,9
33
6,4
31
9,6
29
1,9
27
4,9
25
9,1
23
8,0
20
6,2
17
1,2
15
5,0
14
6,0
14
0,7
0
100
200
300
400
500
[ T
ho
us
an
d p
ers
. ]
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002*
PRODUCTIVITY
450 427380 379 390 407
455492
526 547505
567622
682 712 740
0
200
400
600
800
tones/person and year
THE POLISH HARD COAL INDUSTRYin 2003
and strategy of the sector for years 2004 - 2010
THE POLISH HARD COAL INDUSTRYin 2003
and strategy of the sector for years 2004 - 2010
ORGANISATIONAL SCHEME OFTHE HARD COAL MINING SECTOR
KHW SA
Kompania
Węglowa
S.A.JSWSA
Independent
mines
Non-productive
entities
SRKSA
otherstock
companies
BSRK Sp. z o.o.
liquidated mines
As at21.09.2004
Totally: 39 operating mines
HARD COAL PRODUCTION VOLUMEPRODUCTION OF SIZE GRADES’ VOLUME
2002 20030 2 3
1. Total production volume 102.1 100.4
2. Steam coal 86.2 84.3
lump coal 7.8 7.5
fine coal 73.0 71.9 3. 15.9 16.1
type 34 5.8 5.5 type 35 10.1 10.6
Coking coal
incl
.:in
cl.:
1
No. DetailsProduction volume [m tones]
The coal share in production of: electricity amounts to 92%,
with the hard coal share of approx. 55%,
heat amounts to approx. 77%.
THE COAL SHARE IN ELECTRICITY AND HEAT PRODUCTION
Structure of the domestic consumption of hard coal:
utility power plants and CHPs 52% heat only boilers, industry and other sectors 27% coking plants 15%
industrial power generation 6%
STRUCTURE OF THE HARD COAL SALE
2002 20030 2 3
1. Total sale 99.9 98.5 2. Domestic market 77.0 78.5
3. utility power generation 33.4 36.2
4.industrialpower generation
0.1 0.8
5. industrial and communal heat only boilers
2.4 2.0
6. other industrial receivers - 2.1
7. coking plants 11.5 13.4 8. other domestic receivers 29.6 24.0
Hard coal sale [m tones]
1
of w
hich
:
Eksport
No. Details
9. 22.9 20.0
10. steam coal 19.0 17.3
11. coking coal 3.9 2.7 of w
hich
:
Export
EMPLOYMENT RESTRUCTURING
Employment as at the end of 2003 amounted to 136,454 persons.
Decrease in employment in 2003 amounted to 4,263 persons.
31.12.2002 31.12.20032 3 4140 717 136 454 4 263
108 046 105 127 2 919
32 671 31 327 1 344
of which:coalprocessing
15 414 14 780 634
incl
udin
g:
on the surface
underground
1Totally
Employment in hard coal mining sector
Employment level as at:BalanceDetails
[pers.]
BASIC ECONOMIC AND FINANCIAL INDICATORS
0 1 2 3 4 5
1 Total production volume m tones 102.1 100.4 98.4
Total sale m tones 99.9 98.5 98.6
incl.: domestic m tones 76.9 78.5 102.0
export m tones 23.0 20.0 87.1
3 Quantity of stock at the end of a period m tones 2.4 2.9 121.8
4 Result on sale m zł 432.7 109.2 25.2
5Wages of basic coal employeesaccording to GUS
zł/person 3,775.00 3,885.12 102.9
6 Net result m zł -656.8 9,239.1 -
7 Receivables m zł 2,531.9 2,456.6 97.0
8 Liabilities (long and short term) m zł 22,846.9 8,641.2 37.8
DetailsNo. Unit
2002 2003
Dynamics%
4:3
2
AMOUNT OF LIABILITIES AND RECEIVABLES
22 846.9
2 531.9
20 315.0
6 184.6
8 641.2
2 456.6
0.0
5 000.0
10 000.0
15 000.0
20 000.0
25 000.0
As on 30.12.2002 As on 30.12.2003
m z
ł
Total liabilities(long and short term)
Receivables Surplus of liabilities over receivables
BASIC ECONOMIC AND FINANCIAL INDICATORS FOR 10 MONTH OF 2004
No. Details Unit 200310 month
2004
Dynamics%
4:3
0 1 2 3 4 5
1 Total production volume m tones 100.40 81.90 81.57
2
Total sale m tones 98.50 80.90 82.13
incl.: domestic m tones 78.50 63.10 80.38
export m tones 20.00 17.80 89.00
3 Quantity of stock at the end of a period m tones 2.90 2.70 93.10
4 Result on sale m zł. 109.20 2,644.90 2,422.07
5 Wages of basic coal employees according to GUS zł/person 3,885.12 3,398.00 87.46
6 Net result m zł. 9,239.10 1,745.30 18.89
7 Receivables m zł. 2,456.60 2,268.60 92.35
8 Liabilities (long and short term) m zł. 8,641.20 7,121.10 82.41
Poland’s hard coal demand forecast until 2010 [ m tones ]
POLAND’S HARD COAL DEMAND FORECAST
2004 2005 2006 2007 2008 2009 2010
Utility power generation 42.0 40.5 37.2 36.4 35.6 34.8 34.1
Industrial power generation 4.5 4.4 4.3 4.2 4.1 4.0 3.9
Other receivers 20.2 19.3 19.0 16.7 15.9 15.2 14.6
66.7 64.2 60.5 57.3 55.6 54.0 52.6
Coking plants and steel plants 13.5 13.5 13.5 13.5 13.5 13.5 13.5
13.5 13.5 13.5 13.5 13.5 13.5 13.5
80.2 77.7 74.0 70.8 69.1 67.5 66.1
Groups of receivers
Total steam coal
Total coking coal
TOTAL HARD COAL
Under the continuous upward market trends with respect to power coal and compliance by companies of specific economic conditions, realisation may be extended in time.
REDUCTION OF PRODUCTION CAPACITY IN YEARS 2004 - 2006
Scenarios of reduction of production capacity
I scenario of production volume reduction by 14 m tones by the end of 2006 (the base case scenario) –
target model
II scenario of less drastic reduction of production volume by 7.8 m tones by the end of 2006 –
alternative variant.
In the alternative variant employment level will be reduced by 19.5 thousand.
In the target model employment level will be reduced by 25.5 thousand.
EMPLOYMENT RESTRUCTURING IN YEARS 2004 - 2006
Target model of employment changes until 2006
Alternative variant of employment changes until 2006
miners’benefit
re-training scholarship
re-training contract
01.01.2004 136.5
31.12.2006 111.0 27.0 1.5 25.5 12.0 4.5 3.0 7.5
Newrecruits
Employ-ment
reduction
Employ- mentlevel
Year
Redundancies
Social packageother
reduct.
Totalreduction
miners’ benefit
re-training scholarship
re-training contract
01.01.2004 136.5
31.12.2006 117.0
Newrecruits
Employ-ment
reduction
Employ- mentlevel
Year
Zwolnienia
pakiet socjalnyother
reduct.
Total reduction
21.5 2.0 19.5 8.0 2.5 1.5 9.5
RESTRUCTURING IN YEARS 2004 – 2006
Maintenance of the energy security of the country and co-operation in improving the standard of energy security of the European Union;
Maintenance by mining enterprises of sustainable profitability, economic effectiveness and competitive advantage on the uniform market of the EU;
Securing satisfactory level of financial liquidity and creditworthiness in order to ensure sustained operation and development of mining enterprises;
Balancing of funds so as to enable current payment of liabilities, in particular those due to public sector creditors;
Adjustment of production capacity to the local market demand and economically viable exports to the uniform EU market and elsewhere;
Adjustment of employment to the actual production needs, along with ensuring a greater productivity and efficiency;
Actions towards a rational cost structure; Privatisation of mining enterprises.
RESTRUCTURING IN YEARS 2004 – 2006Objectives and tasks
Aims will be achieved among others by:
cost reduction in all business areas,
conducting such a marketing policy that enables reduction of sale costs,
reduction of production capacity to approx. 88 m tones in 2006 (target model),
realisation of less drastic reduction of production capacity in the
alternative variant, to the level not higher than 94.8 m tones by the end of 2006, provided the bullish market continues and mining enterprises retain sustainable profitability.
RESTRUCTURING IN YEARS 2004 – 2006
Business entities will be economically effective; Primary focus of mines and other entities of the industry will be
able to meet the national demand for coal; Exports by the industry entities will be economically effective; Costs will match revenues; Employment in the industry will match the production capacity,
itself matching the market demand; Entities of the sector will finance upgrade and capital
expenditure projects with their own funds; Mining entities will not benefit from any public assistance not
allowed under international treaties; Mining entities will comply with the environment protection and
work safety standards.
RESTRUCTURING IN YEARS 2004 – 2006Target status