Jastrzebska Spolka Weglowa SA (JSW), the Polish company that’s the European Union’s largest coking coal producer, said 2011 net income jumped on higher coal prices and canceled writedown on real estate tax.
Net income rose to 2.09 billion zloty ($669.5 million) from 1.45 billion zloty a year earlier, the Katowice, southern Poland-based company said in regulatory statement today. Sales increased 29 percent to 9.38 billion zloty. Earnings before interest and taxes rose 40 percent to 2.73 billion zloty.
The state-controlled company, whose 5.37 billion-zloty share sale was Warsaw’s biggest initial public offering last year, benefited from more expensive coking coal. The price of coking coal, used by steelmakers, were an average 39 percent higher in 2011 than in 2010, JSW said. Prices rose in the first quarter last year after floods in Australia cut global supply.
JSW canceled a provision set aside earlier for a real estate tax after last year the Constitutional Tribunal said the levy was illegal. That added 359.7 million zloty to the company’s pretax profit.
The company, whose biggest customers include the world’s largest steel producer ArcelorMittal (MT) and U.S. Steel Corp., produced 8.8 million tons of coking coal last year and 3.8 million tons of thermal coal, used by power plants.
JSW reiterated today it plans to recommend a dividend of at least 30 percent of 2011 net income.
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