The coal company OKD does not currently mine due to coronavirus, there is a focus of the disease in the mines in the Karviná region. The owner’s help is also to rehabilitate the losses caused by the fall in coal prices.
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Prisko decided to increase OKD’s share capital on Friday. Marian Klásek, Chairman of the Board of Directors, and David Rais, Deputy Chairman of the Board of Directors, decided on the increase on behalf of Prisko.
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“The share capital of the company is increased by the amount of six hundred million Czech crowns, ie from the current amount of the share capital of 12 million crowns to the new amount of the share capital of 612 million crowns, with no subscription of shares above or below the proposed amount share capital, “stands in the notarial deed.
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The company asked its shareholder for 1.2 billion crowns in June, ie twice the increased amount. “The agreement on the purchase of OKD shares assumes that Prisko, as the representative of the state, our ultimate owner, will bear the costs of mitigation. To date, we have paid these by mutual agreement,” explained Vanda Staňková, a request from the mining company for help in June. , Chairman of the Board of Directors of OKD.
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Hundreds of millions are expected to be lost
Coal prices are still low, and OKD has stopped mining due to coronavirus for six weeks. “The price of coal was already at low levels last year, when it fell due to trade conflict and fears of a slowdown in China. This year, coal prices are mainly affected by the coronavirus pandemic,” Tomáš Pfeiler, an analyst at Cyrrus, told the server.
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The economic result of OKD is not yet known, but according to Prime Minister Andrej Babiš (YES), it will be in the loss of hundreds of millions of crowns. “Prices of hard coal on the Rotterdam Stock Exchange have lost over 13 percent since the beginning of the year, at such levels mining is unprofitable. Therefore, OKD can be expected to deepen its loss in 2020,” says Pfeiler.
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