Good morning. I'd like to welcome you to the results conference of the JSW Group. The management board is present. We have the production manager, Edward Paździorko. We have Sebastian Bartos heading up sales. We have Robert Ostrowski, the CFO. My name is Tomasz Cudny, and I'm managing the management board as the CEO, and will present the results of the JSW Group in Q2, as well as for the full first half of the year, as I mentioned. If we look at the results, myself and the entire management board have an ambivalent feeling because the results, the financial results, the economic results are very good, but the production and results like output and corridor works are on a much lower level than we had anticipated, had assumed.
Q1 showed us that we were in line with our concept of developing the company. Then we had April, which was a major drama. We had those mining accidents in our mines. For the upcoming years, in terms of the run rate, the atmosphere, and the approach to many things linked to those dramas will just have a major impact. We wanted to calm things down. We wanted to regulate everything in terms of the scene where they took place. The company was well prepared. We had, you know, the work prepared, and I have to mention this. In August of this year, in June, we were supposed to start mining operations.
The preparatory work wasn't completed. The geological survey that we received from our predecessors is very bad, and I don't want to hide this word. They left us with this work where there's no deposit, there's no coal. The plans, we're supposed to start in August, we were supposed to start up a new longwall. All this has boiled down to nothing. We have to remodel that. We have to do a more professional approach. We have to do it more precisely in terms of documentation. Today, it's being analyzed by the management team, and by the end of the year, we should be able to regulate these matters. Let me go ahead and show you the results.
As I said, coal production is down with respect to Q1 by nearly 9%. We can see in coking coal, which is our core business. We have the contracts that we've signed. This is our fundamental goal to catch up here. If we look at the coke production, we have a major increase. We were working at full steam ahead in Q1. In Q2, we continued to operate. We were up by 1.2% in terms of coke production to 885,000 tons. That's a very good result. I mentioned corridor works were down by 5%. We're analyzing how this will affect our future quarter and next year. It's not something we can assess only from the point of view today. Total coal sales down by 11.7%.
This is a result of the previous elements. If we look at production corridor works, previous quarters, we can see what the sales department did. We had good market conditions, and we were selling the inventories we had in the coal storage yards. If we look at sales, we're up by 21%, almost at PLN 6 billion. Of course, we're looking versus Q1 2022. We can say sales revenue is driven by higher prices for coke and coal. It's up by some 40% and coke is up by 35%. As I mentioned, this has an impact, a knock-on impact on the economic results, EBITDA in Q2. PLN 3.88 billion. That's something this company hadn't achieved in the past. That translates into the net result of PLN 2.35 billion.
If we sum up Q1 and Q2, we have more than PLN 4 billion in net result. The various members of the board will present the information about their areas of responsibility during the course of today's conference.
Welcome, ladies and gentlemen. My name is Edward Paździorko. Just as the CEO mentioned, I'll go ahead and walk us through the operating results of JSW Group. Coal and coke production. In Q2, we've had coal production in excess of 3.4 million tons, and it was down, as the CEO mentioned, by 9.7% with respect to Q1. What we can notice is that we had a great first quarter. However, those events, the mine accidents, the CEO mentioned, actually changed things. Then there's Pniówek and Zofiówka.
We were at the preparatory work stage, and the consequences will be noticed in upcoming quarters. What we have to do is analyze the future of coal faces. We have to make sure that this impact is as small as possible. If we look at H1 2022, our total output was 7.16 million tons. This was up by 4.8% over H1 2021. Basically, in terms of production, coking coal, we had an increase of some 40,000. We had an increase of steam coal production of some 230,000 tons. If you look at our production, we had 23.7 active longwalls. That shows that some longwalls had been completed and some were just starting.
We had nearly 24 active longwalls, which is down by nearly 4% over Q1. That's why we can see that in April, we had one longwall that was down primarily because of that mine accident. If we look at the full H1, we had 24.2 longwalls that were active. Production. The number of active longwalls was up by 8% over H1 2021. We were in five mines, seven sections. Each section can sort of be treated like a separate mine. If we look at corridor works. We had a number of crews, in-house crews and external crews. We did 17,414.5 running meters. This was down by 5.2% over Q1.
As I mentioned, these events in Zofiówka, where we had five active longwall stops, and then we had to narrow the zone, where we had to do the rescue operation. We have three are now waiting for a decision to be made by the commission that's investigating this accident, as well as the State Mining Authority, to give a decision or recommendation in terms of the ability to continue operating there, both in Zofiówka as well as in Pniówek mine. If we look at corridor works in H1 2022, we did 35,793.5 meters. This was down from H1 of last year by more than 14%.
As I said previously, these mining accidents had an impact, and they mobilized us, and we're looking at the technology of supporting the longwalls and the ability to support the shields. This impacts what sort of shields will be in place in new longwalls. We have this ratio of 5.0. We can say that we are preparing longwalls for future production. If we go on to coke production in Q2 of 2022, we did more than 885,000 tons. This production was more than 1% up over Q1. By some 10,000 tons.
The first half of the year's production was 1,760,000 tons, and this was down over H1 2021 by 4.5%. This was also linked to the fact that in the first half of the year, we had planned to do a number of renovations, especially in the Przyjaźń Coking Plant . We had three coking plants, Jadwiga, Przyjaźń, and Radlin , where we did coke production. The production capacity was in Jadwiga, primarily. Przyjaźń, and Radlin had roughly 97% production utilization in this period. If we look at the type of coke we were producing, 86% was basically industrial. Then we had metallurgic and foundry coke around 0.4%.
We had a split of the various types of coke that we were producing. Blast furnace coke, then, as I said, down to industrial and foundry coke. Thank you.
Welcome, ladies and gentlemen. I would like to share some facts and data with you and share some commentary about the sales area we run, which has generated revenue for our group. As you know, as we look back over the last two years, JSW is operating in a very volatile environment, more and more unpredictable, and we as a company have to find our way. Also along with our bundle of customers, this is not just the steel industry, but outside of the steel industry and having a volatile environment. We have, you know, very fast changing variables, and that means we have to find solutions fast for our production.
These are not plants where we can stop producing or it's not the case that we can just suspend things and not realize certain contracts. We have commercial contracts. This is also linked to the nature of our group. These plants cannot be stopped. They're continuous running plants. We have to work together with our buyers, our customers. Some of our customers, as I said previously, this is not just the steel industry. We have clients from the sugar industry, the soda industry, and they operate in totally different market conditions, and they have totally different conditions to work in. It's our priority to provide products not only during good market terms, conditions, but for conditions that vary for all parties.
During the first half of the year where this was a special test for us in the entire environment, we were able to find solutions with our buyers, our customers. They enabled JSW to post unheard of revenue and profit. At the same time, this is the most important thing that we've been able to maintain our relations with our customers. We have good partnership relations, as is the case and has been the case for the entire past. These are not simple discussions and agreements as we operate on a market where the variability in raw materials changes quite a bit in the course of a quarter. Sometimes we have changes of 100, 200%.
Maybe a few bits of information about what's happened on the market in terms of prices and where we are here as a company, raw materials or commodities company. If we look at the trends and what we've observed in the first half of the year. As we compare Q1 to Q2 of this year. Steel production across the globe has grown from 456 million to 492 million. This is an increase of nearly 8% in Europe. We can say that it's around 37 million tons. This is a pretty high level of steel production as we look historically. It's pretty stable. We can see the difference between the European market and the global market. This is the reason and the fact why we, as a group, strive to diversify our sales.
We're not only talking about the EU. Our natural customers are located, of course, in Europe, but we wanna offer our products outside of Europe. That's why we continue to deliver products to India, Algeria, Nordic countries based on long-term contracts. If we look at the seaborne deliveries, we were also working on the Chinese and Vietnamese market in the past. This gives us a certain amount of stability or equilibrium. The European market is subject to special pressure and tests, having in mind the geopolitical situation, the cost of electricity. This is something that's been happening since the twenty-fourth of February. Having diversified sales, we're better able to move about safely in the market. These are things, production, that we're never gonna be able to stop. We have to sell everything.
As we observe things are happening on the market and observing what's happening with our buyers, we don't live quarter to quarter. These are not spot deliveries or supplies. Based on what you read in comments and information provided by us in the past, during our quarterly presentations, but also in terms of our current reports, that's not why we enter into long-term contracts over, you know, years and decades. This is something that should protect our clients and ourselves. To ensure that short-term swings of short-term market conditions wouldn't affect us. I've been in the company for some 20 years. I experienced various in terms of the volatility on the commodities market, but the return path is always different. Today's situation is extremely unpredictable and the consequences for the future are not known. They're unknown.
We should maximize our revenue and profits for our group, but this should be done in such a way that over many years, the contracts we have, we should be able to cooperate with our clients. We're not integrated with any steel works. Everything that we extract, we wanna convert into coke and then sell on the marketplace. Coming back to these figures, if we look at spot prices on the markets, what happened between Q1 and Q2, you watch these figures, of course. You have $487, $445 in the second quarter, coking coal spot prices. These are above average high, unseen in the past.
What's interesting, what's happened in the last six months, and to illustrate this, in Q1, the average price you see is between $357-$620 at the peak after the Russian aggression against Ukraine was announced. There was panic on the market as a result. If we look at Q2, we still see a major spread from $302-$530. In such a marketplace, having long-term contracts with price mechanisms, we're able to cooperate with our customers. Some of you have learned about our philosophy that we work on free market negotiations. We take into consideration certain price formulas based on the preceding quarter of the Nippon Steel method, where we use one month from the previous quarter and two months from the current quarter to create the price.
This gives us a buffer on such a highly volatile market. We don't have an impact on the global market, at least here. As a result, we're able to regulate the level of revenue, and we're able to mitigate those major shifts because such major switches and changes in revenue, this leads to a lot of complications for buyers and sellers. If in such a short period these values grow or fall, we have to have this in mind. This creates problem and havoc. If we look at steel prices on the European market, you have $1,200 and $1,189 in Q2. The volatility in the European market for flat goods is not very big. We can see that this is still a relatively high level.
If we look at the European market for long products, rods, we have an increase. Why is that happening? In terms of rods, this is primarily large infrastructural investments, construction industry. This is something that operates and has a slightly different nature from flat goods. Where you're going to the automotive industry with your products. It's pretty complicated in terms of the nature of its operation. Sometimes we have a shortage of components or semi-finished products to manufacture vehicles. With respect to the electronics side of things is well known, but there are other shortages which can inhibit full production. Let me mention here two numbers. In the first half of 2021 or so 2022 and 2021, if we look at the registration of new vehicles, it's down by 14% in June of this year alone.
The decline is 15.4%. This shows that there are some problems being encountered by the automotive industry. As I said, we see that the growth should not be as high. If we look at coal prices, if we look at the European or the Chinese market, the growth is 4.2% from $636-$663. In the Chinese market, it's $516, $592-$593. The Chinese market was always different from the European market. The European market, depending on the market conditions and cycles, generally speaking. The price was higher margins, and this is something we observe. There's one additional element why these prices in Q2 are where they are, and this will continue in subsequent periods. The difference is so big for the following reason.
We should know that GDP in China, the growth in Q2 of this year was 0.4%. If I remember correctly, this is the worst growth result of GDP in China since 1993. From the time when the data is collected and reported. This shows a problem that the Chinese economy might be facing, and this might influence why these values are lower. How does this compare to the prices for our products as we look against the backdrop? As I said, the value of our group, the relationships with our buyers, our customers, are a key issue and should operate both during good and negative market conditions. These relations are the most important. It doesn't mean we disregard the market. We have to look at each buyer or customer separately.
If we look at some of the steel mills and we look at some of the ones from outside the steel industry, we're able to run negotiations and talks with them to achieve market conditions and retain these clients, not only in this period when we're on the other side of the table and we have extraordinary profits, but we have to enable them to operate in order to be able to function together in subsequent periods. That's the top priority. Our philosophy, having in mind our distinct nature, is to be poised to a long-term cooperation. We know that practically speaking, we're the only producer of coking coal in this part of Europe, and that's why we have to operate in such a way to be able to work together with these clients for a much longer period.
Also when the market conditions turn south, and this is something that will certainly happen, and then JSW will be affected. If we look at the prices of coal and what JSW was able to command in Q2, I'm talking about the first graph, and then you have the reference rates as a result of those three different price setting mechanisms. The reference period is a five-month period, and you can see the peak of $667, which was the panic price after the breakout of the new conflict. This means that in Q2, our average coking coal price is $441. What percentage does that represent of these prices? This is 91%, so it's higher than in Q1 of this year.
This is consistent with what we've accomplished in other periods where the market was much smaller than it is today. Why do we have these long-term contracts and these new price formulas, which are better than what JSW had in the past? Well, the difference between Q1 and Q3 is depending on different price setting methods. The formulas or price negotiations where we have different terms forming part of that. Now all customers don't have the exact same mechanisms. With such major shifts in prices, we can have deviations, negative and positive, versus the daily prices, quarterly prices. That's why we can see that Q2 is much better than Q1, but it's consistent with what the company's been able to deliver in the past, having in mind the quality of our coal.
This is happening in a period when we had extraordinarily high prices. Our customers have asked for a variety of discussions, price reductions, because it's an extraordinary situation. Despite that, the company was able to maintain this relationship. This is a result of the arrangements we've made, and we've been able to profit from this period. We have buyers, so we treat the steel industry differently from how we treat other smaller customers. If you look at coke prices in relation to prices on the European market in Q2 of this year, we have a similar situation. We have an average price $637 and the $613. This is 96% of that average price. This is much higher than we saw in Q1 of this year.
This is also a result of price arrangements with our customers. We should also have in mind that the growth that started in Q1, not all customers were ready for such a situation. What we could see on the previous graph, we can say that if we look at Q1 and Q2, prices are at relatively high levels, very high levels. The company can be a little bit more aggressive as it negotiates coke supplies deliveries. These are things that we utilize or take advantage of. This happened in Q2, where we were able to improve our results. This is the result of certain shifts in terms of seaborne transportation. We were catching up for some of the shortfalls in Q4 of 2021. That's why we had the ratio that was a little bit lower in Q1.
In Q2, seeing that there were some opportunities, and then we had a good positive margin in the steel industry, we allowed ourselves to be slightly more aggressive in a specific segment to ensure that it was a win-win situation for all parties concerned. We wanted them to take the maximum benefit, and we didn't want to distort and disrupt relations with our buyers. If we look at steam coal, I'd like to say a few words here. The situation is even more varied and volatile. We have a price of PLN 301 versus PLN 308 in Q1. You could think that the company had a lower price where the overall market is going in a totally different direction. Well, this is the distinct factor of the entire national market. We're not the major player. PGG is the major player, Tauron, Bogdanka.
These are mines, typical mines that offer steam coal above all. We have some steam coal, and we have production at 2.5-2.7 million tons. We're just one of the additional suppliers. Let me remind you that we have annual contracts. The contracts arranged for 2022 were put in place in December of 2021, prior to the conflict, prior to the shifts in the geopolitical situation. These arrangements are in place for the entirety of 2022. Seeing what's happening and having certain inventories from the previous year and even some inventory from 2022, where the power companies didn't take receipt of all of the coal we had. We did have some inventories, extra inventories.
On top of our annual contracts or our obligations, commitments to the commercial power sector, we had additional tons of coal which we could sell at higher prices. Our approach was, is that we had much higher prices for these additional inventories, and they were primarily sold in Q1. Above all, we wanted for the power companies, we wanted to get the higher prices for the first supplies. That's why the 106% in Q1, which is much higher than the index on the national market. Our prices were much higher than the rest of the players in the market. That was the result of that. What's the consequence? After cashing in on that sales, after offloading most of the extra coal, we were only able to sell the core tons under contracts for 2022.
Q2, we also had the period in which Mr. Tomasz Cudny started with that, our production started to fall. This was a decline of some 25% in Q2, so we didn't have inventories which had been sold at higher prices in Q1. We only had our core contracts, and the tons we produced in Q2 were reduced. That's why we have a difference between Q1 and Q2. As you compare us to the domestic national index. Even so, the company approached the commercial power sector, and we're supplying almost entirely to the commercial power sector. Very little is sold elsewhere. We renegotiated, wanted to renegotiate prices, and we talked to everybody on the domestic market, and I can say that those renegotiations were completed, and we have reached arrangements, and we have higher prices in every single line item.
Since we're at a conference and we're talking about the results for Q1 and Q2 for the first half of the year, today we cannot betray the details, but this will be the subject of discussions at the results conference on the eighteenth of November when we present the results for Q3. I just wanted to give you this information in terms of our commercial policy and the amount of steam coal sold. If you look at aggregated sales, coking coal and steam coal. We have coal sales to external customers outside of our own coking plants is down by 15% from 2.8 million to 0.39 million. This is the result of the fact that in Q1, the company got rid of its extra inventories.
We had lower production for steam coal, and this is also the result of having those contracts and tons that we had to deliver. If we compare H1 of this year and last year, here we can see stability is preserved. There were no changes essentially. The growth is 0.8%. This is more or less in line with what we did in the first half of last year. If we have coal sales to internal customers, we're thinking about the integrated coking plants, the three of them, Jadwiga, Przyjaźń, Radlin . We're down by 3.7%. This is internal regulation. This is how we regulate or run our policy of inventories. We incorporate other things that are driven by the technology. We have a big investment in coking battery number four.
For technical reasons, some of the chambers in that battery have to be emptied to have room, and then we have to have the ability, the technical ability to continue doing the construction of battery number four. That's why we're preparing our coal inventories. That's why we have a slight minor correction. If we compare the first half of the year 2022 to 2021, we're down tens of percentage points. We're at a very stable level in terms of coal sales. The priority of the group is for our coking plants to function at full capacity. The markets enable us to do that. The external market has allowed us to do that.
Despite the volatility, we've been able to produce coke, maintain inventories in the ports or in Silesia coal storage yards. We had material ready for when the market was starting to consume. We had shipments ready. As a result, our priority is to deliver this coal to our own coking plants, so we can maintain our production capacity as close to 100 as possible in terms of its utilization. Now if we look at revenue on coal sales to external clients, this is a result of the tonnages. If we look at the Q1 of this year and Q2 of this year, and making comparison, you can see this is up by 23%. This is a result of higher prices plus the tons we produced.
If we compare H1 2021 to H1 of this year, the increase is 222%. The difference between revenue to external customers, PLN 1.857 billion to PLN 5.984 billion just shows you how volatile the market is, how much has changed in the course of one year. The average selling price of coal to external customers. Here we have the same situation. This is a result of market conditions, our arrangements in terms of long-term contracts. This shows that from Q1 this year to Q2 of this year, we were able to generate an increase of more than 40%. If we look at H1 comparison, we can say that with respect to coal, the price is up by nearly 300%.
These are two factors that have driven the value of the group through its results. I can only say this extraordinary result was achieved by selling coking coal and coke. This is where we earn money mostly. The next slide is the sales of coke. We have the coke sales to external customers. It went from 945,000 to 829,000. In terms of tons, the decrease has been explained last year in terms of inventories, different shifts. We have, you know, product being loaded on a ship with 75,000 tons. We have started to sell certain things as of the first of January. That's why as a result of this time shift, we have a higher level of revenues. If we look at Q2, this is a continuation of our policy.
The tons that we have at our disposal, we wanna sell the maximum amount to the market. If we look at an H1 comparison. Here, we can see a decline of 5.5%, and this is also a result solely and exclusively of the time shifts of these large ships that were loaded with products. We wanna continue operating at full steam in terms of our production, and this is assured. If we look at the average coke sales price, this is what I said previously about coke. It's essentially the same, where we've built a result. In Q2, we saw another increase of the coke price of 35%. It was already high, but it's up by another 35%.
If we compare this on the H1 basis, we can say that there's an increase of 127%, so it's much better and much higher compared to what happens between Q1 and Q2. There's one other thing that's worth mentioning here. We have the increase on coal. We've had 200% and 300%, whereas the growth on coke is around 127%. Let's say 130% rounding it off. As we compare the first half of this year to the first half of last year. As you remember, when we announced the results for 2020 to 2021, the group as a group, not just JSW, but the group had a profit of PLN 1 billion, and that was built on coke.
This is the business model of the group, where I tell you, it's basically something that defends itself. We have such a volatile market. Last year, coke drove the result. The coke prices were high enough that when we compare to further price growth, it's not as spectacular as it is in the case of coal. In 2021, we had low-priced coal. That was the market. We had a good positive result, thanks solely to the coke segment. Now it's the opposite. Now the driver in the group is coal. We're benefiting from this market. Even though we have the high, low levels of coal, we're able to generate a margin. We're diversifying the market, converting coal into coke, and we don't have to sell it then to Europe and just deteriorate our position.
This product in the form of coke is sent to a variety of destinations as it leaves Europe, and this gives us a bigger field in which to operate. If we look at revenues on the sales of coke and hydrocarbons to external customers, this is just a compilation of the figures and the price increases. It's up 19% in Q2 over Q1, and it's up by 115% from PLN 2.1 billion to PLN 4.5 billion. The last slide, which is the inventory of coal and coke in our group. As you can see from the mid of 2021 until now, well, the inventory has fallen substantially. As of 30 June, we had roughly 480,000 tons in inventories. This spans everything.
We have the operational coal, which is in our coking yards, where we have 150,000-160,000 tons. This is the inventory that coking plants have to have in order to prepare their mixtures, and the rest is at various mines. If we look at this volume, we can say that it's borderline. It's the minimum safety level that the company has. When we present results in upcoming quarters, this will continue to fall, but this shows you that the inventories have been essentially sold off. There are no extra inventories. We only have operating inventories for coal, and this applies to steam coal and coking coal. If we look at coke. The growth from 170,000 to almost 230,000, this is a matter of shifts for the seagoing shifts.
Sometimes at the end of the quarter, we have ships that are in the process of being loaded. If it's not loaded by the end of the quarter, then that 75,000 shifts to the next quarter. We have 3.5 million tons in the group. This is a safe level of inventory. Having in mind these ships sailing the seas, this gives us a safe level of inventory. That's it from my side. Thank you.
Ladies and gentlemen, if we look at the investments of the JSW Group. I would show you the investments, the CapEx in the JSW Group. We can show this on an accrual basis without consolidation effects or eliminations. It was more than PLN 495 million, and it was down by 3.5% in terms of the CapEx.
If we look at the H1 basis, we are above PLN 1 billion in CapEx, and the CapEx in the first half of the year is up over the first half of last year by nearly 33%. It's by almost PLN 250 million. The bulk of CapEx was in the coke and coking segments. Here, thinking primarily about the coking segment in the second quarter, where we have PLN 63 million, down 7% by some PLN 27 million. If we look at the first half of the year, we're at PLN 759 million, up 19% over the first half of 2021. It's an increase of nearly PLN 121 million. If you look at this segment, the coal segment, we were buying finished goods, more than PLN 70 million.
The modernization of mechanized shields PLN 25 million, and then we had winning machines, so transportation equipment, more than PLN 18 million, and then other purchases of some PLN 10 million. We also saw more than PLN 37 million in our expendable mining roadways, so PLN 5,000 per meter in terms of the tunneling works. If you look at the second segment, if we look at JSW Koks, also on an accrual basis, without taking into consideration the consolidation eliminations, the CapEx was PLN 104 million in Q2, up by nearly 10% over Q1. If we look at H1 2022, our CapEx was nearly PLN 200 million, and it was up over H1 2021 by more than 26%. It's up by more than 22%.
This is linked to the modernization of the coking battery number four in the Przyjaźń Coking Plant, and then also, the Heating power unit being constructed there. There's PLN 16 million for the rest, spent on the rest. If we look at the expenditures in the overall group, the capital expenditures in the group, having in mind the pay downs of lease payments and loans. In Q2, this was more than PLN 605 million of CapEx compared to Q1, which was up by almost 12%. Some PLN 64 million. If we do a comparison of the first half of this year over last year, we exceeded PLN 1.146 billion. This was up by more than 23%, which is more than PLN 215 million. Thank you very much for your attention.
Welcome, ladies and gentlemen.
My name is Robert Ostrowski. I'm responsible for finance, and I can give you some information about the financial results of the group in the first half of the year. After the information has been presented by my colleagues in terms of production and the market review, the question then is, what does this mean for our financial results? The revenue for the first half of the year was PLN 10.9 billion. That's an increase over H1 of last year by 161%. This situation in Q1 and Q2 contributed to the H1 result. In Q2 of this year, we had revenue of PLN 5.972 billion, and this was up by 21.1% over Q1.
It's worth mentioning that comparing to Q1, so one quarter, the second quarter of this year, gave us higher revenue than in the first half of last year, that's up by some 43%. Our revenue was up by some PLN 615 million for coal. The price delivered an increase of some PLN 850 million, but the volume actually reduced the revenue, lower volume, by PLN 232 million. The volume was down by 29% for steam coal, and for coking coal, it was down by 5.7%. In the coke segment, we had higher revenue by some 18% over Q1. Prices improved this by PLN 56 million, but
The average price of coke was up by 35%, but the volume was down by 12 percentage points, and this reduced by, like, revenue by some PLN 20-30 million. We also had an increase in revenue on hydrocarbons of some PLN 70 million. We had an increase by some PLN 51 million in just the hydrocarbons. This is a result of the sale of tar, coking gas, and benzol. If we look at the EBITDA of the group on a consolidated basis. In the first half of the year, there was some PLN 5.8 billion, but we had quite a few non-recurring events. Without those non-recurring events, it was PLN 6.48 billion. In the corresponding period of the previous year, it was PLN 339 million. We see a huge progress in EBITDA.
Q2 net of one-offs, EBITDA was PLN 3.187 billion, basically up by 50% over the Q1 EBITDA. The net result is PLN 4.2 billion in Q1 or H1. In H1 of last year, we had a loss of PLN 330 million. We have an improvement in excess of PLN 4.5 billion for these two corresponding periods as we compare them. Q2 delivered a net result of PLN 2.35 billion, and it was up over Q1 by 27.3%. Maybe a few words about our revenue in Q2. The negative factors, I mentioned them previously. We had the impact of coke sales volume, which was almost PLN 230 million.
The second biggest impact or factor was the impact of coke and coal sales volume decreasing PLN 132 million. The third important element is the impact of steam coal sales volume, and this was down by 29%, and this meant a decrease of PLN 100 million. Everything else is price related. The biggest contributing factor was the impact of coking coal price change, and this translated into almost PLN 885 million in revenue. The second most important price-related factor was the impact of coke price change. It was up by 35%, and this translated into an impact of PLN 576 million. The third important factor was the impact of revenues from other sales, primarily hydrocarbons. This was an increase of more than PLN 50 million. Generally speaking, this category delivered an extra 70 million, almost.
The next important factor to be discussed is our expenses by nature. A lot has happened here. In H1 of this year, our cost base was PLN 5.9 billion. Last year, the costs were PLN 4.7 billion. This is an increase of nearly 26%. Of course, the main category contributing to higher costs are employee benefits. We reported information previously in terms of a one-off payment, which was posted as a Q2 cost. 48 million złotys in JSW. Employee benefits account for 52%. Last year was 49%, but this was a result of the additional bonus. That's an additional 8% of all costs.
In Q2 of this year, we had costs of PLN 3.25 billion. This is a result of the one-off payment of a premium or of a bonus in JSW. This is PLN 3.215 billion. If we look at other costs, maybe I can say a few words about materials and energy. Well, they grew. Materials grew by PLN 69 million and by PLN 38 million in JSW alone. This is a result of the materials for expendable mining roadways as well as the shields. These are really operating expenses. We have the renovation company. We had a larger number of renovation services up by some PLN 27 million. We have a 2.5% difference in terms of the cost of energy.
This is a result of lower heat prices as we didn't need that energy in Q2 because we've had better weather conditions. If we look at external prices, they're up by PLN 25 million, so an increase of 6.3%. Twenty-nine million in JSW. Mostly renovation services and other mine services, getting rid of mining damages or other operating aspects. The lower depreciation by almost PLN 29 million. This is down in Q2. This is in JSW, where we had costs down by PLN 43 million in terms of depreciation of tunneling works. A small technical break. Now we have to remember, and we should have in the back of our head, that the level of costs, by nature, also relates to the magnitude of production. In the first half of this year, it was up by 4.8%.
This also had an impact on the costs that were generated. If we look at coke production was down by 4.5%. As you remember, the ratio of coking coal to, or coal to coke is 1.4. In Q2, we had lower production, and the production of coke was up by 1.2%. This also had an impact on the costs. Please remember that Q2 has this additional charge in the form of the bonus paid to employees, and that's why the costs are substantially higher. If we look at this in a slightly different frame, in the group, we had PLN 2.7 billion of costs in Q1. Net of the one-off bonus is more or less similar to what we saw in Q2. It's up by 1.3% only.
Having in mind, of course, the assumptions related to production volumes. If we forget about the cash bonus, we have consumption of materials for tunneling, roadways and doing renovations, and we have more services up by PLN 20 million because we're doing more work. If we look at external services, we can say the costs are up by PLN 25 million. This is renovation services as well as to handle mining damages. The other things shown as lower costs contributed to lower costs. We had depreciation and amortization down by 29.2, and then the employee benefits net of the cash bonus. This is down by PLN 22.5 million zlotys. We should remember, as of 1 January, we have an increase with employees' pay rise of 10%, and this has affected H1 and will affect H2.
Now if we look at the mining cash cost, in Q1, it was PLN 446 per ton. In Q2, it's above PLN 500 per ton. Having in mind the fall off in production, the run rate. We can say the mining cash cost is up by some PLN 47 as a result of the decline in production. This has a pretty major impact on the mining cash cost. The second factor, which had a negative impact, are external services. This is a difference of PLN 14 per ton. I talked about them previously. The same is true if we talk about consumption of materials and energy, the costs are up. Mining cash cost is up by some PLN 12 as a result. Then we have employee benefits.
Net of the cash bonus, this reduced the mining cash cost by PLN 20.27 per ton. We also had a one-off bonus of a lower amount of PLN 43.9 million. We had higher headcount by 165 persons. This also increased the cost of Q1. That's why we have a decrease in Q2. We also had a higher provision for unused holidays, PLN 15 million. The mining cash cost, if we take into consideration all of these factors as well as the cash bonus, that's PLN 631. The cash bonus, which is one-off, is very important when we analyze the mining cash cost.
If we look at the cash conversion cost, it was below PLN 200 in Q1, and now it's at PLN 215 in Q2. The biggest impact factor was employee benefits as well as the bonus of more than PLN 16 million. Another negative factor was on admin expenses, which were up by some PLN 4 million. We had higher taxes and fees and employee benefits also for PFRON, and also to release reverse provisions for real estate tax, which was not charged in the first quarter. Another factor which makes a negative impact on the cash conversion cost, which is our external services net of transport costs of coal feedstock, and the difference here is PLN 3.48. The volume reduced the cost because we had an additional 10,000 tons of production.
This is PLN 2.28 million, PLN 2.28 złoty. We had energy effectiveness. These are certificates. We had lower licensing fees of some PLN 70,000. That's why the cost in Q2, despite the higher volume of coke production, is higher than in Q1. Please remember, we don't take into consideration the cost of the coal feedstock. Here we have a slide for mining cash cost and the cash conversion cost on a combined basis, and we see this in złoty for first half of the year. An absolute value is PLN 3.8 billion. In the first half of last year, it was a little over PLN 3 billion. This is an increase of more than 21%.
Q2, the mining cash cost is PLN 2.147 billion, and this is up by some 41.3%. Here, of course, the one-off cash bonus is important. We had two negative contributing factors in terms of the volume, 48 PLN, and overall expenses, 136 PLN per ton. In the coke side, the cash conversion cost was 320, 302 versus 362, so it's up by 25%. If you compare Q2 to Q1, it was up by 9.2%, and we had one positive element, which was volume, and this is 2.28 PLN. The other costs when totaled, which were higher, increased the cash conversion cost per ton by more than 21 PLN. Here we have a graph illustrating our bridge.
We can see the impact exerted by the major drivers between Q1 and Q2. Again, net of one-offs, where the total impact of those one-offs is PLN 697 million. The biggest impact or driver is PLN 470 million, which is the one-off cash bonus. We did some impairment tests for the assets, and this is PLN 169 million. Also, this is a one-off. It was PLN 80 million in Q1. As a result of what happened at the Pniówek mine after the mining accident, we have a charge of PLN 21 million. And then we have the costs of these events at Pniówek and Zofiówka is more than PLN 30 million. The total impact is PLN 697 million of one-offs in Q2. The volume and prices of coal had a positive impact of PLN 625 million.
We had the impact of coke sales volume and price. This was an increase of PLN 346 million. We had impact of changes in product inventory, PLN 117.6 million. We had the negative impact. We had the impact of cost by nature, PLN 513 million. Impact of impairment loss, PLN 110 million on us. If we net out the one-offs, the EBIT in Q2 is PLN 3.187 billion. If we look at EBITDA in the operating segments. The change in coal segment drove up EBITDA by PLN 669 million. In the coke segment, almost PLN 146 million is up. The other segment has a decline of PLN 10.4 million. We have consolidation eliminations.
That's PLN 253 million in red. We had the one-offs of PLN 697 million. I talked about them previously. Maybe now a little bit of information about our working capital. The total assets is PLN 21.5 billion. If we look at the loans and borrowings on a short-term basis without provisions and trade in other liabilities and other current liabilities, we can see the total current liabilities is PLN 5.8 billion. That means our fixed capital is PLN 16 billion. If we look at property, plant, and equipment and other assets, we have the net working capital in the group, which is PLN 2.67 billion.
Here's another way of calculating working capital, starting with inventory and trade receivables and overpaid income tax and cash, which is PLN 4.5 billion, and this is the main ingredient, you could say. We have PLN 8 million other current assets. If we look at our current liabilities. These are trade liabilities. We come down to PLN 2.67 billion in net working capital. Two ratios we regularly show you, which is fixed capital to non-current assets ratio, is at 1.08. Our fixed capital more than covers our non-current assets. Without incorporating any of our provisions. At the end of June of last year, it was 0.83. That was an incorrect situation. If we look at net debt.
Net debt at the end of June of this year is negative, which means the company has a good standing. It's worth PLN 2.7 billion. At the end of the period, we have more cash than the value of our loans and borrowings and lease contracts, which are in the balance sheet at the end of June. Now, a few words about our cash flow. At the end of March, we were at PLN 2.7 billion, and it went up to PLN 4.5 billion. What are the contributing factors? We have depreciation of PLN 97 million. We have profit before tax of PLN 2.9 billion. We have increased inventories by 142 million. We don't have any problem with recovering our receivables, but we have an increase here, PLN 537 million.
Increase in trade and other liabilities, PLN 633.3 million. We're paying everything on a timely basis. We have investment expenditures, so investing cash flows. This is PLN 1.2 billion. Well, this also includes PLN 700 million spent to buy investment certificates in our closed-end capital fund. We paid down loans and borrowings according to the schedule, primarily PFR. We had the liquidity loan, and we paid down by some PLN 90 million for preferential loan. The repayment of loans and borrowings is almost PLN 114 million in the negative, and then PLN 49 million for lease payments. We have other financing flows and FX differences of PLN 8 million. That's why at the end of June, we had PLN 4,546.3 million.
That's it in terms of finances and the capital group standing. Thank you for your attention. ESG was to be presented by the fifth management board member, Mr. Artur Wojtków, who was elected by the employees. He's responsible for other employee-related affairs. I wanna pass on some important information.
This is in this strategy. I can show you the milestones that the company wants to achieve in our pro-environmental approach. On this slide, we've indicated the main things we want to achieve climate neutrality by 2015. In 2030, we wanna have reduced our carbon footprint. Then the last green box, this is our cooperation with business partners. They wanted us, to the extent possible, to define, to disclose or divulge our emissions.
We've been doing that since 2017 with respect to Scope 1 and Scope 2. Now we have Scope 3. To those of you who are interested, we wanna reduce Scope 3 emissions, which is the CO2 equivalent linked to the cars we use in the company. The social sides of the employees, society we know where we operate, we know where their role is, we know who we wanna work with. This is supported by the company's foundation. It analyzes the needs, the applications that are submitted to the foundation. There's a lot of support that's needed. We also talk about what happened at the beginning of this year, so aid for Ukraine. We're providing assistance to the city in terms of transferring major amounts for PCK, so Polish Red Cross.
We also get involved in assistance, not only financial aid, but organizational assistance and physical assistance. We've had trips organized for children to Zakopane. We could mention quite a few things here. We've had our social acceptance. I think it's good we've wrapped this up. We continue to do this. We're coordinating our activities with the city for this to be treated as something that we're doing together. The city and the biggest company here, I won't mention, sports because sports are treated as a type of presenting our brand to the external world, the world championships or the championships achieved by our hockey team or our volleyball team. Basically, the football players want to aspire to that level. For us, this is a great source of pride that they bear our brand on their shoulders and spread on their shirts.
They may have governance. The investor relations department always indicates what we should do, how we should act. That's why we apply the code of best practices. They're well-received. I'm pleased that we've been able to secure the industrial security certificate. We're talking about how we work together and present ourselves to the outside world. I'm not sure what our labor affairs management board would say. I would talk about ESG as the CEO. What we're doing in the field of ESG is very transparent. We show how much we wanna spend, we show what we wanna achieve in the short and long term, and then we do it. I do have comments in terms of how the local government is treating us. I'm talking about the local mayors of towns and cities. They don't accept everything.
It seems to me that what we're doing should be a source of satisfaction that they have a company that operates here that's listed in the WIG20 index, which brings splendor to the people who work here, but also splendor to the operating areas of these local governments. This takes the form of decisions made that block our operations, the development of our operations. There are certain decisions we need when we secure concessions or licenses, and so sometimes their behavior and conduct is quite odd. They say that they're caring for the local population, or they're talking about, you know, green energy generation. I know that our deposits can't be pushed anywhere else, they can't be moved anywhere else.
Certain activities taken by the cities and communes and towns, the things that we do lead to some economic or mining damages. We're spending PLN 100 million last year to repair these mining damages. This year, we've spent PLN 5-52 million. We're not doing this just because of legal relations. We're doing this because we bear a full responsibility of working in this environment. Moving in the direction of renewable energy generation, to some extent, we look at our product differently. Our product is needed to develop renewable energy, low emission or zero emissions. Without steel, you don't have a civilization. If you wanna build the 1 ton of steel, you need 516 kilograms of our product.
If you look at the wind turbine, we need a lot of steel, so we can actually make these calculations. I would like to ask the local governments to analyze the benefits that come from for employees to think about the people who work in our company. I mean, for the city to think about the citizens who are working in our company as employees. It's not only about low emissions, but it's also the product being needed to develop the civilization. I'd like to thank all the people who prepared today's conference. Now we can come on to the question session. We have a number of questions we received during the conference and prior to that. If we have more questions, then the IR department will clearly provide responses.
I'd now like to ask those questions to be posed. Question number one. Could the management board explain why with higher energy prices, the sales of raw materials in Q2 in JSW are lower on a Q&Q basis? PolPX is selling coal at more than 30 PLN per gigajoule, where we're selling it for 12 PLN per gigajoule. Our prices are lower than in Bogdanka. PGG in 2023 will sell coal between 22-27 PLN per gigajoule. Is this time to revise the sales policy at JSW?
Ladies and gentlemen, this question is directed to me. I think I responded to this question to a great extent because I showed you the results and the prices that we've commanded.
I could tell you about the achievement that we made, especially in Q1, where the company, to a large extent, sold off its inventories at prices that were much higher than the annual agreements. This took place, and this was reflected in our first quarter results. This is well above the Polish national coal price index. This situation did not exist in Q2. We only used the core prices. This is a period in which we renegotiated contracts. We were able to strike a compromise between ourselves and the commercial power sector. These are things we'll present to you at subsequent earnings conferences, especially for Q3 and Q4. These are things that have been reviewed. What we're doing here is fully aligned to what's happening on the domestic coal market.
When I heard the level of prices being quoted here, I don't think we can react on what other companies are doing. The coal we're selling to the commercial power sector and all the additional volumes outside of the core contracts prior to renegotiations are certainly above the level that was listed here. The second part of the question, if I remember well, stating certain speculations about a price level that might be achieved in 2023. Please allow us not to comment on that because these talks are underway. These talks have not been completed. If they're done, we'll have the opportunity for us as a coal company to report to you what the market will look like and what's gonna happen on 2023. Thank you.
At present, steam coal prices in ARA are higher than coking coal. Do you see changes in competitors?
Is this a good time to sell more, coking coal, semi-soft, as well as steam coal at ARA prices? I'll try to respond to this question. I think there are three elements, if I remember well. One thing, the production, the change in the production profile by various, competitors from coking coal to steam coal. Ladies and gentlemen, everybody makes different decisions depending on the philosophy of cooperation with its customers. Some producers from the U.S. are willing to operate on the spot markets, and they have the ability to, produce typical steam coal, and they do that in Australia. They're much more reticent. As a region, they traditionally are famous for very high quality coking coal to produce steel for the metallurgical industry, and so they're reticent. They don't want to do that at all. They do esteem long-term contracts with steel mills.
We at JSW, we were showing you our strategy not too long ago, up until 2030. We're a commodity company. Its priority and core business is to produce raw materials. We don't even call it coal. We say raw materials to produce steel. This is what Tomasz Cudny, the CEO, said a moment ago when talking about our ESG policy, what we produce and what percentage of that or where we are in terms of shifting in green programs and various environmental facilities. Any changes here would be very difficult to justify, and they would be myopic or short-sighted if we have certain shifts in earnings and profits. If we have certain difficulties from unexpected geological reasons, we have a shortage of coking coal, and we're able to use the northern mines to produce a little bit more steam coal.
This is only being done to that purpose. We don't wanna change our profile. This is consistent with what I said to you during our sales presentation, that we're interested in our long-term partners, the steel segment. This is a segment. This is part of the full-fledged energy transition in the EU. This is our core business, and those type of changes would be short-sighted. The second thing, let's remember that our task and our position, the position we have here in Poland, some 90% or even more of our production of coal for steam coal prices is sold here in Poland to the commercial power sector. We have different conditions from the ones we see on the global markets, and JSW is not the main player. We're only a secondary player. The quality of coal we have determines one thing.
The steam coal we have is not even fully fit to be used by commercial power sector. It has to be mixed with other coal grades. These type of potential changes are not plausible from the point of view of the raw material we have. It would be fully at odds with our strategy. That's not why we enter into long-term contracts. This would be at odds with our philosophy of cooperation. The third thing, as I mentioned, is the Polish market is a bit different from what's happening elsewhere in the world. Look at 2021, look at 2022, and the results we've achieved. The record-breaking results are being generated thanks to selling coking coal, coke, as well as, hydrocarbons. I think that's enough. The next question is about one of the most recent reports in terms of, impairment losses.
What is the value in Źródeł? Thank you for the question. Yes, we regularly take impairment losses. We're talking about cash generating units, CGUs. The problem is a result of the fact that the recoverable value, which was calculated based on the test at the end of the year, had generated a zero. The accounting value is higher than the recoverable value, and that means we have to keep on taking charges for the CGU. Is this a result of having not enough volume as opposed to the official plan of the company? Should we anticipate more impairment losses in Q3 and Q4? When do you think that those impairment losses will stop? This is a pretty complicated question. I'll try to simplify in my response. Having in mind my response to the previous question.
As long as the recoverable value is gonna be lower or equal to zero, with respect to the book value of the assets, that's the reason why we're gonna have to keep taking these impairment losses. We'll assess this at every balance sheet date, and we'll make a decision in terms of either taking an impairment loss or reversing that. I think we'll get to that moment in time. Thank you. The next question is about a dividend. There are more questions, so I think one response will respond to others. The payment of a dividend is a necessary condition to improve the share price of JSW on the Warsaw Stock Exchange. Can the management board declare that it will pay a dividend for 2022, let's say of 30%? Can it declare that it will do that?
This is a question that recurs at every conference. We understand that, 'cause as we look at the results quarter by quarter, this question is merited. As I explained to you, we have financial contracts in place with PFR. These were loans that were taken out in previous periods. We have a condition where it says that no dividends can be paid. The loans from PFR are very attractive in terms of the cost of money, and it wouldn't be sensible to pay down those loans in advance. We are working together with financial institutions, including PFR, to improve the financing structure. Topics about changing these conditions with the PFR institution, this is something that's being discussed. I don't want to pre-judge the outcome.
I think I'll be able to say more sometime in the future, a couple of quarters down the road. Another question is about electricity. To what extent does the company have electricity for 2023? What percentage is secured and at what average price? And what was the price and volume in Q1, 2022 in JSW SA? And what is the security or how much security do you have in terms of the electricity purchases for next year? And how much has been purchased in 2023 and 2024, and at what prices? I'll try to respond to this question. Above all, JSW has a two-year contract to purchase electricity. It's a framework contract, a master contract.
We can purchase energy from the wholesale market on the exchange, and we enter into tranches, and we use the indexes that are set by the Warsaw Commodity Exchange. If we look at the volume, during the H1 of this year, we purchased nearly 500,000 MWh in the first half of the year. We spent PLN 292 million. The price was PLN 585 for a MWh. If we look at the forecast for the latter half of the year, since we have access to the Warsaw Commodity Exchange for commodity exchange and the wholesale market, we're tracking our needs and we see how much we're producing ourselves, what we need using cogeneration as we utilize methane for commercial purposes, and we can then enter into various tranches.
In terms of 2023, as I mentioned, this year is covered by this contract, and so we have some 65% of the energy is secured. It's 510 GWh of electricity that's been purchased directly. The average price is 566 PLN per MWh. The rest of the volumes, as I mentioned previously, will depend on how much we actually need, how much we produce on our own. It depends on what's gonna happen with price hikes, and then we'll be able to purchase more from the exchange, power exchange in 2024, just as in 2022 and 2023. There will also be a framework contract which will enable us to get access to the power exchange. At present, we can say we're wrapping up the process of selecting a supplier. Thank you.
How many long walls were operating in 2022? How many should be in operation in 2023 in Q3 and Q4? What is the plan for production in 2022? I mentioned, when we discussed production and we compared this to last year, we'll have around 27-28 active long walls. This will change depending on the phase in which they are. Generally, we wanna have 24 active long walls. Up to the end of this year, that's the plan subsequent to that. Having in mind the lack of steam coal, has the company been asked or has it decided to ramp up the production of steam coal in the second quarter of this year? I'd like to refer to what Mr. Cudny and Mr. Bartos mentioned. We're a company that produces above all, coking coal.
This, here we have all of the various coking coal grades, 34, 35. If we look at the flotation, we have steam coal produced in that way. Mr. Bartos said the same coal coming as a result of the flotation process is only used for steam coal as a mixed admixture. The events from accidents that took place in April mean that we have 7 sections, and this is where we're operating and focusing. We had to reorganize our efforts and also reorganize the staff, and we have to catch up on almost 100% of what the mines in the south were producing, 'cause this was Pniówek and Zofiówka, and the coals over there. Basically, the northern mines of Budryk and Krupiński took over that production responsibility.
Those two mines, one of Budryk as well as the combined mine. According to our strategy and investments, they should be able to generate the bulk of the winnings of coal, as is the case in the southern mines. At present, we're at 56%-59%, sometimes it's higher. That's why moving that production, well, this means that we have more steam coal than we had planned. This is a natural process, and this is something that's happening in these mines, but this is not stopping the process we had in the strategy where we would like to drive up the percentage of coking coal. These are all the questions we have. Thank you very much.
Thank you very much for your participation in the conference.
I'd like to thank all of the employees of the group for their activity and participation in achieving our production targets. I'd like to thank all of the people who are supporting their production. I'd also like to thank all of you people who have been here today to prepare this conference and base of the substance as well as the technical matter, technical affairs. Thank you very much.