KATOWICE, Poland, April 16 (Reuters) - State-run PGG, Poland’s biggest coal mining firm, expects capital expenditure to rise this year to 2.56 billion zlotys ($759.67 million) from 1.82 billion in 2017, it said on Monday.
PGG’s coal output in 2017 was about 30 million tonnes, lower than originally planned as cost cutting pushed down investment.
PGG also said it booked a net profit of 86 million zlotys in 2017 compared with a net loss of 332 million zlotys in 2016.
A fall in coal prices and high labour costs pushed PGG to the brink of bankruptcy in 2015. In 2016 state-run utilities bought shares in PGG, helping it avoid collapse.
“We are generating positive cash flows at the moment, which enable financing investment, this is why we do not need financing from our shareholders,” PGG Chief Executive Tomasz Rogala told reporters.
PGG trade unions have demanded a 10 percent rise in employee salaries and have threatened to strike on April 25 as talks with the management board have so far failed to lead to an agreement.
$1 = 3.3699 zlotys Reporting by Wojciech Zurawski Writing by Agnieszka Barteczko Editing by Edmund Blair