Kopalnia Bogdanka has signed an annex to a long-term coal supply agreement with Orlen Termika, increasing the contract value to approximately PLN 507 million net for the period 2026–2028. The deal significantly boosts coal deliveries to Warsaw’s Siekierki heat and power plant, with a 167% increase in the 2027 volume compared to the previous terms.
The annex, concluded on July 10, 2026, extends the original agreement signed on June 18, 2018, through the end of 2028. Under the new terms, Bogdanka will supply substantially more steam coal to Orlen Termika, primarily for the Elektrociepłownia Siekierki facility in Warsaw. The total estimated value of the contract from its inception to December 31, 2028, now stands at around PLN 768 million net, excluding possible adjustments.
Details of the contract amendment
The key change involves the delivery volume for 2027, which has been raised by approximately 167% relative to the level before the annex was signed. The parties also set the coal price for 2027 and extended the agreement’s validity by one year, to the end of 2028. Price negotiations for each calendar year will continue to reflect market conditions and require separate annexes.
Orlen Termika, a subsidiary of the Orlen Group, operates Warsaw’s combined heat and power plants, which produce 11% of all district heat generated in Poland. Its network reaches 70% of Warsaw’s residents and 60% of those in Pruszków, Piastów, and Michałowice.
Financial context and market outlook
The annex comes at a challenging time for Lubelski Węgiel Bogdanka. In the first quarter of 2026, the group reported consolidated revenue of PLN 702.6 million, down 19.1% year-on-year. EBITDA plunged 93.6% to PLN 25.2 million, while the operating result (EBIT) turned negative at minus PLN 24.8 million, compared with a profit of PLN 343.7 million a year earlier. The net loss reached PLN 22.1 million, reversing a PLN 283.9 million profit in Q1 2025.
The increased coal supply to Orlen Termika provides a stable revenue stream for the struggling miner, though the long-term outlook for coal in Poland remains uncertain amid the energy transition. The contract’s extension to 2028 offers some breathing room for Bogdanka as it seeks to diversify and improve its financial performance.
Źródło: WNP.PL, Fot. Nordroden / Shutterstock
