KGHM POLSKA MIEDŹ S.A.
font size: A A A PDF report
Homepage / Results and forecast / Review of financial position / Statement of comprehensive income

Review of financial position

In 2011, the Company realised a profit for the period in the amount of PLN 11 334 520 thousand, the highest in the history of KGHM Polska Miedź S.A.

Statement of comprehensive income – basic items (‘000 PLN)

    2010 2011
Sales   15 945 032 20 097 392
Operating costs   9 287 686 10 733 839
Profit from operations   6 657 346 9 363 553
Profit on other operating activities   (1 019 198) 4 324 087
Profit on the sale of companies   34 2 662 245
Exchange differences   (30 445) 895 164
Measurement and realisation of derivatives   (1 172 284) 320 919
Dividends   146 658 277 330
Other   36 839 168 429
Operating profit (EBIT)   5 638 148 13 687 640
  • Finance costs
  32 581 34 043
  • Profit before income tax
  5 605 567 13 653 597
  • Profit for the period
  4 568 589 11 334 520
  • EBITDA (EBIT + depreciation/amortisation
  6 253 616 14 360 013

 

In relation to 2010, profit for the period increased by 2.5-times, i.e. by PLN 6 765 931 thousand. The most important factors impacting the change in the result are presented in table.

Basic factors impacting the change in the financial result
ItemImpact on change in result (‚000 PLN)Description
Change in prices of basic products (Cu, Ag)* +3 752 055 Copper prices higher by 17% and silver by 74%.
Sale of telecom assets +2 656 201 Profit realised on Polkomtel S.A. sales, before taxation
(PLN 2 512 200 thousand) and DIALOG S.A. (PLN 144 001 thousand) increased the result on other operating activities.
Impact of hedging transactions
+1 592 581 Includes the change in the result due to measurement and realisation of derivatives (+PLN 1 493 203 thousand) and the change in adjustment of revenue due to hedging (+PLN 99 378 thousand).
Operating costs -1 446 158 An increase in the total unit cost of electrolytic copper production in PLN/t by 4.5%.
Income tax -1 282 099 An increase in the financial result caused higher taxation.
In addition, the change in the level of taxation
was impacted by tax-deductible costs related
to the sale of DIALOG S.A. (higher than the recognised
cost of sale of the shares) which reduced tax due by PLN 220 516 thousand.
Exchange differences +925 609 The high level of cash and cash equivalents in foreign
currencies accumulated due to planned
investment expenditures and changes in the exchange rate gave this item major significance in the statement of comprehensive income
Change in volume of sales of basic products (Cu, Ag)* +368 894 An increase in the volume of copper sales by 21.6 thousand t alongside lower silver sales by 68 t.
Change in exchange rate* -280 892 A change in the exchange rate from 3.02 USD/PLN to 2.96 USD/PLN

* Impact on sales

Financial ratios


Ratios describing the structure of basic liquidity, assets and equity profitability, and financing, are shown in the charts below.

Liquidity ratios show the relationship of current assets, or their more liquid part, to current liabilities. The increase in the liquidity ratios was mainly due to an increase in cash and cash equivalents.

The increase in the profit brought an improvement in the return on assets (ROA) and the return on equity (ROE) ratios.

The decrease in the debt ratio is due to a lower rate of increase of liabilities (13.9%) than equity (60.0%). On the contrary, the financing structure durability ratio increased from 84.9 to 86.8, mainly due to an increase in the share of equity and non-current liabilities in the financing sources structure.


Wskaźniki

 

Capital market ratios

The activities of the Company are described by the following ratios:

 Capital market ratios

      2010 2011
EPS (PLN) Profit for the period / number of shares   22,84 56,7
P/CE Price per share / financial surplus per share *   25,9 1,9
P/E Price per share / earnings per share   7,6 2,0
MC/S Market capitalisation**/ revenues from sales   2,2 1,1
P/BV Price per share / book value per share ***   2,4 1,0

* Financial surplus = profit for the period + depreciation/amortisation

** Market capitalisation represents total shares outstanding times share price from the last day of the year (200 million shares x PLN 106.00 in 2009; PLN 173.00 in 2010; PLN 110.60 in 2011)

*** Carrying amount of the equity at the end of the reporting period

 
The capital market ratios were substantially impacted in 2011 by the high profit earned by the Company and by the fall in the share price of KGHM from PLN 173.00 at the end of 2010 to PLN 110.60 at the end of 2011.

 

 

Report on shortcuts