Electricity prices will affect the performance of WSE companies
Rising electricity prices could cause some listed companies to lose up to half of their EBIDTA.
Lukasz Rudnik, an analyst at Trigon DM, says that until now, industrial companies have passed on increases in the cost of materials, energy and wages to customers because order levels were high. However, demand has now fallen. As a result, companies will have to take the cost of materials and energy into their own results.
An analysis by Erste Securities Poland shows that the companies with the largest share of electricity prices in business costs are: JSW, PKP Cargo, Mangata, KGHM, Forte, Famur, Stalprodukt, Apator and Mo-Bruk. The company checked how a 79 percent increase in energy prices, the amount based on futures prices quoted in the first half of 2022 on the Polish Power Exchange (TGE), would affect these companies’ EBIDTA results. In the case of PKP Cargo, this could result in a decline in EBIDTA of 53 percent, while Stalprodukt’s EBIDTA would fall by 48 percent. Forte, on the other hand, faces a decline in EBIDTA of 19 percent, while Magnat’s EBIDTA would fall by 17 percent. KGHM can expect a decline of 14 percent, Alumetal by 12 percent, and JSW by 3 percent.