Shares in Largest EU Coal Producer Fall 5%
- New Europe Investor
- January 28, 2015
Jastrzebska Spolka Weglowa shares fell 5.3% today following its Polish mine workers announcing a strike.
The WIG20 Indexed Company’s contention with miners originated from them protesting against money saving proposals that included the scrapping of social benefits, and the removal of union leaders.
Four of five coal mines closed today and plans are being made for a closure to the fifth also.
Low coal prices have led to the firm trying to cut costs of over 500 million zloty (€120 million).
In the first nine months of 2014, the company made a net loss of 305 million zloty (€73 million), and sales dropped 17% based on the same period in 2013.
JSW said on its website that their employees should exercise caution as the strikes are deepening the financial problems within the company.
The coal mining company was the Polish stock market’s worst performing share last year, falling 68%.
Another Polish coal company, Kompania Weglowa had its miners on strike two weeks ago, but following successful negotiations with Prime Minister, Ewa Kopacz, a deal was done with the unions.
Jastrzebska Spolka Weglowa, founded in 1993, are the largest EU coal producer employing 26,000 people. The company sells its coal primarily on the domestic market.
On their website, they say they mined over 14 million tons of coal in 2013.