Home /

/ A Successful 2017 Financial Year

A Successful 2017 Financial Year

News from July 02, 2018

  • Total output +24% to EUR 222 million (p/y: EUR 178 million)
  • EBITDA at EUR 2,007 thousand (p/y: EUR 1,812 thousand)
  • Reinforcement of international coal trading relationships
  • Positive outlook for 2018

Berlin, 2 July 2018: In the 2017 financial year, the international commodities trading group HMS Bergbau AG continued its strategy of expanding its business activities to include additional raw materials such as ores, metals and cement products, and is increasingly developing into an international commodities trading group. The focus of the Company’s operating activities continues to be the coal business for the steel, cement and power plant industries, where HMS Bergbau AG has spent decades building its recognised expertise in mapping the entire value chain.

In addition to the conclusion of various international marketing agreements in 2017, particularly in South Africa and Indonesia, and an accompanying increase in tonnage coupled with stable commodity prices, the planned sale of up to 20 percent of the shares in Silesian Coal International Group of Companies S.A. represents the most significant milestone in the 2017 and 2018 financial years. The proceeds from the sale will be used to finance HMS Bergbau AG’s preparations for coal mining in Orzesze, Poland, and to further strengthen the Company’s international trading activities.

The operational decisions initiated in recent years are also reflected in the results of HMS Bergbau, which were once again influenced by the strong trading business in Asia and Africa. Total output rose by a solid 24 percent year-on-year to EUR 222 million. At the same time, EBITDA increased from EUR 1,812 thousand to EUR 2,007 thousand in 2017. Net profit for the period saw an above-average increase and amounted to EUR 720 thousand as of 31 December 2017, compared with EUR 269 thousand as of the end of 2016. With an increase in total assets to EUR 46.2 million, equity was almost 10% higher than in the prior year.

The current 2018 financial year also got off to a promising start. The sustained upward trend emerging in the commodity markets, the favourable framework agreements with established customers and the international positioning of HMS Bergbau AG, lead us to expect a continued improvement in our results. Accordingly, management expects to slightly increase sales in the current 2018 financial year and to maintain an attractive gross margin due to the further vertical and horizontal integration of its trading business. The net profit for the 2018 financial year should be similar to the level reported in the 2017 financial year.