FAMUR Group revenues in the first quarter of 2022 amounted to PLN 274 million, thus reaching the level achieved in the same period of last year. EBITDA result amounted to PLN 95 million. Net profit was PLN 36 million and the surplus of cash over financial debt was PLN 482 million.

 

The first quarter of 2022 for the first time includes revenues from the photovoltaics segment for the full reporting period – its share in the Group's revenues amounted to PLN 10 million. In May 2021, FAMUR decided to change strategic directions and enter projects in the area of renewable energy sources (RES). The assumption behind the green transition of the FAMUR Group is that the company will aim to achieve about 70 percent of its revenues from sources unrelated to steam coal by the end of 2024.

“The first quarter of the current year started on a rather optimistic note. More countries lifted restrictions related to COVID-19 and the orders portfolio of the FAMUR Group began to gradually rebuild. However, we ended that period in an entirely new economic and political reality. The war in Ukraine, the return of the pandemic in China and the resulting blockades, as well as the risks of slowing economic activity with escalating price increases have all left their mark. Despite unfavourable conditions, we close the first quarter with solid financial results. Group revenues amounted to PLN 274 million, thus remaining at the same level as last year,” says Mirosław Bendzera, President of the Management Board of FAMUR SA.

 

Results in the mining machinery segment

 

In the mining machinery segment, the company's revenues were lower by PLN 10 million, a decrease of 4% compared to the same period last year. The activity in this area was closely related to the outbreak of war in Ukraine. On the one hand, the conflict caused an increase in the prices of fossil fuels to record levels, on the other hand, it caused serious disruptions in the supply chain and a sharp jump in the prices of other raw materials, including metallurgical products and derivative components, which are an important part of FAMUR Group production. Following the outbreak of war, the Group decided to suspend preparing quotations for new mining machinery and equipment in the Russian Federation until further notice and complied with the sanctions imposed by administrative decisions of the Polish government and the European Union as a gesture of solidarity.

 

“At the beginning of April this year, we concluded an agreement to withdraw from a number of contracts for the supply of equipment to Russia, concluded at the end of 2021, with a total value of approximately PLN 130 million. The level of costs to be covered by the FAMUR Group resulting from their termination is not significant," says Mirosław Bendzera. “In the segment of mining machinery, which is our traditional field of activity, we will focus on looking for new markets and orders in other countries to fill the gap left by the Russian market,” he adds.

 

Polish mining companies in the first quarter of 2022 continued to focus their investment activity mainly on the replacement area, including renewing leases and ordering after-sales services. From January to March 2022, the FAMUR Group received new orders to the value of approx. PLN 152 million from Poland and abroad. The total order portfolio as of 31 March 2022, understood as deliveries of machinery and equipment and leases according to the terms of the contracts, amounted to approximately PLN 592 million.

 

Development of the RES area within the FAMUR Group

 

The main objective of the Group's new strategic directions, adopted in May 2021, is to build a holding company investing in green transformation. One of the key elements of the strategy is the development of Famur in the sector of large-scale photovoltaic projects. The company has been consistently implementing its assumptions, including continuing the construction of PV farms with a capacity of 134 MW while actively seeking a buyer for them. In March 2022, FAMUR concluded a project finance loan agreement with a limit of PLN 428 million to finance and refinance the construction costs of PV farms.

 

“We continue to grow our portfolio of photovoltaic projects through the development of our own initiatives and purchases from the market. This brought us to nearly 1.9 GW of estimated total capacity of projects at various stages of development as of the end of the first quarter of this year. In accordance with our assumptions for the development of the photovoltaic segment, we are also planning foreign expansion and we are currently in the process of organizing operational and commercial structures, e.g. in Germany," explains Mirosław Bendzera.

 

New initiatives in the FAMUR Group

 

In the first quarter of 2022, the FAMUR Group undertook two important initiatives in the area of renewable energy. The first is the addition of overhaul and maintenance services for wind turbine gearboxes to the Group's offer. The introduction of this service did not involve capital expenditures, as it will be performed on the basis of the existing machinery stock and many years of experience of the mining machinery segment of the FAMUR Group in the design, production and repair of gearboxes intended for multiple industries.

 

“We are currently working on expanding our offer in the field of wind turbine gearbox overhauls and maintenance. Regardless of these activities, in May this year, we signed a letter of intent with EdF EN Group in order to develop a model of potential cooperation for the development and operation of projects related to wind turbines in Poland," adds Mirosław Bendzera.

 

The second new initiative currently in development in the mining machinery segment includes efforts to reduce the carbon footprint of the manufacturing process and achieve measurable savings in energy costs. The FAMUR Group has commissioned PV panel installations in two production plants in the prosumer system, each with a capacity of 50 kWp. Engineering works are currently underway to increase the capacity of the commissioned systems. The company also plans to commission another PV installation with a capacity of approx. 1 MWp and provide it with an energy storage solution. FAMUR wants to use most of the energy obtained from the installations for its own needs.