The Group’s third-quarter performance was driven by low oil and gas prices prevailing on energy exchanges. The average price of natural gas on the Day-Ahead Market of the Polish Power Exchange was PLN 112.21 per MWh in the third quarter of 2018 compared with barely PLN 51.20 per MWh in the third quarter of 2019, a sharp decline of as much as 54% last seen in 2015. The average price of Brent crude in USD for the quarter fell 18% year on year, weighing heavily on revenue in the Exploration and Production segment, which makes the largest contribution to the PGNiG Group’s EBITDA. The lower gas prices drove down revenue also in Trade and Storage, despite an 8% increase in external sales volumes recorded by the business in the third quarter. The sales volume in the whole Trade and Storage segment in Q1-Q3 2019 grew by 5% year on year.
The PGNiG Group reported a 4% yoy increase in Q1–Q3 2019 revenue, to PLN 29.65bn, with EBITDA down 32%, to PLN 3.93bn, and net profit down 52%, to PLN 1.34bn.
The first nine months of 2019 saw the Group continue to diversify its gas supply sources. The volume of LNG imported in the nine months to September 30th 2019 was 27% higher than in the same period of 2018, amounting to 2.48 bcm after regasification. LNG supplies’ share in total gas imports was about 23%, compared with about 18% a year earlier. The Group received 22 LNG deliveries from the beginning of this year to the end of September, compared with 16 cargoes received in the same period last year, with total LNG imports by volume having increased by 0.52 bcm.
At the same time, gas imports from the eastern direction decreased by about 21% year on year, to 6.29 bcm, and their share in total gas imports fell by 17 pp down to 58% in comparison to 75% in the same period last year.
Third quarter saw an increase in external sales volume by PGNiG Capital Group of 0.41 bcm and an increase of 1.01 bcm for the first nine months of the year. The subsidiary PST contributed significantly to the Group’s external sales growth in the third quarter, delivering an increase in sales volumes from 0.86 bcm to 1.3 bcm.
In Distribution, the volume of distributed gas dropped slightly (by 1% year on year), while revenue from distribution services fell 3% year on year.
In the third quarter of 2019, Generation posted a notable year-on-year increase in revenue from heat sales (of 13%), driven among other factors by lower average temperatures. The volume of heat sold grew 11% year on year.
PGNiG