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GAS 17 March, 2020 2:00 pm   
Editorial staff

PGNiG: We managed to achieve a two percent increase in revenues in 2019

In 2019, the PGNiG Group posted revenue of PLN 42.02bn, which represents a two percent year-on-year increase. EBITDA and net profit came in at PLN 5.5bn and PLN 1.37bn, respectively.

Increase of gas sold

– In 2019, the total volume of gas we sold increased by approximately six percent year on year, despite higher temperatures in the first and fourth quarters of the year. On the other hand, the oversupply of LNG continued to suppress gas prices on global markets. The average annual price of gas traded on the Polish Power Exchange was 35 percent lower compared with the previous year, which had a significant impact on revenue from gas sales – said Jerzy Kwieciński, president of the PGNiG Management Board. – All participants of the global gas market are currently facing the challenge of low prices. We should bear in mind, though, that demand for gas has been growing at a significant rate, as confirmed by forecasts from all around the world. Against this backdrop, we are consistently and actively diversifying our sources of natural gas imports with a view to ensuring Poland’s energy security. In 2019, our LNG imports increased by more than 27 percent on the year before – added Mr Kwieciński.

The Trade and Storage segment’s revenue rose by five percent, to PLN 33.25bn. 2019 saw a clear shift in total gas imports. The share of natural gas imported from Russia fell from 67 percent to 60 percent. While the share of LNG imports went up from 20 percent to 23 percent. In 2019, PGNiG received 31 LNG cargoes under long-, medium- and short-term (spot) contracts (2018: 23 LNG deliveries). LNG import volumes rose from 2.71 bcm in 2018 to 3.43 bcm in 2019. In 2019, the number of retail gas customers increased by about 67,000, to 6.95m. The Group’s retail company, PGNiG Obrót Detaliczny, sold 7.59 bcm of natural gas to end users, approximately 100 mcm more than in 2018.

A decline in the Exploration and Production segment’s revenue from sales of crude oil and condensate was attributable to both lower oil prices and a ten percent drop in the volume of oil produced by the Group. The segment’s revenue from sales of natural gas also fell, by ca. PLN 1.45bn, on lower prices of gas traded on the Polish Power Exchange.

Total gas volumes sold outside the Group increased by six percent y/y, to 30.70 bcm.

Revenue from distribution services decreased by five percent relative to the year before, to PLN 4.21bn, accompanied by a two percent year-on-year decrease in the volume of distributed gas. The distribution tariff (effective as of February 15th 2019) is five percent lower than the tariff applicable in 2018.

Revenue from heat sales earned by the Generation segment was stable at approximately PLN 1.33bn (up 1 percent y/y) with higher average temperatures and slightly lower sales (down tree percent y/y). Revenue from sales of internally generated electricity went up markedly, by 24 percent y/y, on stable sales volumes of 3.95 TWh (down 0.5 percent y/y). The segment’s total revenue rose by 7 percent, to PLN 2.57bn.

The PGNiG Group’s financial performance was also affected by impairment losses on property, plant and equipment, recognised in Q4 2019, mainly in the Exploration and Production (of PLN 212m) and the Trade and Storage (of PLN 339m) segments, as well as an impairment loss on shares in Polska Grupa Górnicza, of approximately PLN 272m.

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