The 1H 2021 and 2Q 2021 results of the FAMUR Group as a consequence of the ongoing energy transition

The revenue of the FAMUR Group in the second quarter of 2021 amounted to PLN 244 million, achieving an increase of 9% compared to the same period last year. EBITDA amounted to PLN 70 million and the EBITDA margin stood at 29% of revenue. The generated net profit reached PLN 22 million. On the other hand, revenue for the first half of 2021 amounted to PLN 518 million, down by 9% compared to the corresponding period last year. Net profit amounted to PLN 61 million (down by PLN 22 million vs. 1H 2020), EBITDA PLN 161 million (down by PLN 57 million vs. 1H 2020).

Performance in recent quarters was under the pressure of tightening decarbonisation policies and the still ongoing and impactful COVID-19 pandemic. These factors – despite a significant rebound in coal prices on global markets – mean that mining companies continue to reduce or postpone previously planned development investments, limiting themselves mainly to replacement expenditure. In the first half of the year, this causes a significant decrease in revenue from the primary market (the greatest reduction took place in the category of delivery of machinery and equipment, i.e. 38% year-on-year), partially limited by the increase in recurring revenues from the aftermarket and leases (increased by approx. 5%).

While the coal mining sector in Poland waits for the final shape of the restructuring plan, the FAMUR Group maintains export sales at the level of approx. 36% of revenue. + The largest share of foreign sales invariably comes from the Russian market and CIS countries, however, the Group continues to expand into new markets, as exemplified by the contract signed in August this year with the US company Century Mining for the delivery of powered supports worth approximately USD 28 million (approximately PLN 111 million) for a coking coal mine. This will be the first direct delivery of this type of equipment to the United States.

New directions of development for the FAMUR Group

The main event with a fundamental impact on the Group’s future development is defining new strategic directions, with the aim of building a holding company that invests in the green transition, among other things, through entry into the sector of large-scale PV projects.

The Group currently has over 130 MW solar farms under construction, in addition to having secured 103 MW of total power in the RES (OZE) auction of June this year, proving the high effectiveness of the announced measures. In total, FAMUR Group has over 1.2 GW of estimated project capacity at various stages of development, including nearly 240 MW of projects with successful biddings in 2019, 2020 and 2021.

The first half of this year showed that FAMUR Group is effectively taking advantage of the current process of dynamic changes in the market environment, related to the energy transition. An example of consistent and well-targeted actions aimed at transforming FAMUR Group into a holding that invests in green transition is the entry into the PV sector based on the combined resources and competencies of Projekt Solartechnik (PST), TDJ and FAMUR Group. “Our experience in the industrial and power sector, the scale of the implemented projects, strong financial foundations combined with the support of TDJ allowed us to start activities related to the development of the PV segment within the structures of the Group,” says Mirosław Bendzera, President of the Management Board of FAMUR SA.

The total value of acquired orders from the mining sector in 2Q2021 amounts to PLN 135 million, while approximately PLN 200 million is the Group’s financial involvement (as of 30 June 2021) in the development of the PV segment (purchase of projects, loans to SPVs, incurred costs for the construction of PV granted farms). In the near future, the Group also plans to obtain external financing for the development of the PV segment based on the available products and financial instruments dedicated to this area.

“In line with the update of strategic directions presented in May this year, we intend to consistently build a strong position for the FAMUR Group in the renewable energy sector, inter alia, through the development of new competencies in cogeneration, energy storage, SmartGrid and HVAC technologies. Regardless of undertaken intensive diversification activities, we maintain a strong position in the global market of mining machinery and equipment suppliers and we constantly analyse the situation on both the domestic and foreign markets, adjusting and optimising the Group’s activities to the changing environment,” adds Mirosław Bendzera.

Globe icon EN Globe icon