An increase in the FAMUR Group’s revenues in Q1 2022

In the first half of 2022, the FAMUR Group’s revenues reached PLN 550 million, with the net profit at PLN 14 million. In the second quarter of this year alone, the revenues stood at PLN 290 million, an increase of 24% y/y. This led to an improved EBITDA margin which was PLN 99 million in the second quarter of 2022 (an increase of PLN 34 million y/y), and totalled PLN 191 million in the first half of 2022. Cash surplus over gross debt amounted to PLN 349 million. The share in sales to foreign markets was 44%.

In addition, the first half of 2022 was the first full reporting period at the FAMUR Group for the photovoltaic segment which generated PLN 26 million in revenue. The operations in the renewable energy sector resulted from the decision announced in May last year for the company to change strategic directions and enter into renewable energy projects. The objective of the Group’s green transformation is to achieve approx. 70% of revenues from sources not related to steam coal by 2024.

“In the second quarter of 2022, the FAMUR Group increased its revenues and improved its EBITDA profitability, despite an exceptionally high degree of uncertainty still present in the global economy. On the one hand, the continuing high prices of fossil fuels affected the level of requests for quotation, but on the other hand, we had to deal with high prices of raw materials and disruptions in the supply chain. However, the flexible model of our organization developed over the years helped us to quickly adapt to dynamic market changes – says Mirosław Bendzera, President of the Management Board at FAMUR S.A.

Growth of the PV segment in the FAMUR Group

FAMUR develops new projects in the photovoltaic segment, and continues the construction of solar farms. At the end of June 2022, the estimated total capacity of the projects, at various stages of development, was over 2.1 GW, including approx. 309 MW with the successful 2019, 2020 and 2021 auctions.

In June this year, Project Solartechnik (PST), owned by the FAMUR Group, concluded a pre-contract with Spoleto, a member of the international independent power producer Alternus Energy Group (Alternus) – for the sale of a portfolio of solar farm projects with a total capacity of 184 MW, at various stages of implementation. The document also envisages the construction of solar power plants based on these projects. After the sale, PST will also provide maintenance services for solar farms being the subject of the transaction. The total value of the contract will be approx. PLN 750 million.

“The contract with Alternus Energy Group is the first transaction for the sale of solar power plants to be carried out by PST since the entry into the FAMUR Group’s structures and, at the same time, one of the largest transactions in the history of the PV sector in the CEE region. The signing of the contract confirms that a year after our entry into the solar farm sector, together with PST, we have achieved the position of a trusted partner on this market,” comments Mirosław Bendzera. “In the coming months, we will continue our efforts to simplify the legal and organizational structure of the PV segment to improve its operational efficiency. We will focus on finalizing the contract for the sale of the farm portfolio, in accordance with the concluded pre-contract, on the construction of farms and the development of new projects, both in Poland and in Germany,” – he adds.

Results in the mining machinery segment

In the second quarter of 2022, the mining machinery segment generated PLN 524 million in revenue, an increase of PLN 24 million or 5 percent y/y. In the second quarter of this year, FAMUR secured new contracts from Poland and abroad for approx. PLN 192 million, which means an improvement of approx. PLN 40 million (26%) from the last quarter, and an increase of approx. PLN 57 million (42%) y/y. The total order portfolio, comprising deliveries of machinery and equipment and lease contracts, in accordance with the terms of the contracts, increased to approx. PLN 736 million as at 30 June 2022 from approx. PLN 592 million at the end of the first quarter of this year.

In the mining machinery segment, there is a noticeable increase in demand for new equipment as fossil fuel prices remain at record levels. The foreign activity of the FAMUR Group focuses on expanding the Group’s presence in such regions as Indonesia, North America and China.

A recovery in the mining machinery segment is also observed on the Polish market. In June this year, the Famur’s offer for the rental of mining equipment with an estimated contract value of PLN 96 million was selected in a tender procedure organized by a major Polish contractor. In addition, the company has concluded a number of smaller-value contracts for the lease and delivery of machinery and after-sales services.

“In the coming quarters, we will continue to implement new strategic directions to transform the FAMUR Group into a holding which invests in green transformation and promising industrial sectors. We are working hard on further acquisition projects that will enable us to achieve this objective. The long-term development of the FAMUR Group requires not only the diversification of our sources of income in line with the energy transformation and close monitoring of our expenditure, but also the continuous initiation of operational solutions that are cost-effective, safe for our employees and environmentally friendly. This is why we have started, together with an independent external consultant, drawing up a Sustainable Development Strategy for the FAMUR Group,” – sums up Mirosław Bendzera.