Victory over Gazprom is reflected in PGNiG’s record results

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In the nine months to September 30th 2020, the PGNiG Group’s EBITDA and EBIT came in at nearly PLN 10.7bn and more than PLN 8.24bn, respectively. Despite low prices of oil and gas and the global economic downturn caused by the coronavirus pandemic, the PGNiG Group once again delivered robust financial performance and strong operating results – we read in PGNiG’s statement.

The results of the PGNiG Group for the first nine months of 2020 remain strong also if adjusted for the effect of impairment losses on property, plant and equipment and settlement of the overpayment for gas supplies under the Yamal contract following the favourable resolution of the arbitration proceedings against Gazprom. Excluding the effect of these, the PGNiG Group’s EBITDA would be PLN 5.5bn, an increase of 32% year on year, and EBIT – PLN 3.06bn, an increase of 51% year on year.

“What is of key importance to the PGNiG Group’s financial performance in the coming quarters is the change of the pricing formula under the Yamal contract rather than the return of overpayment for gas supplied under that contract in previous years. Winning the arbitration proceedings has helped PGNiG to significantly improve its trading position by creating a stronger link between the costs of gas purchased east of Poland and gas prices in European markets. It is not the money returned by Gazprom that underlies the strength of our Group,” said Paweł Majewski, PGNiG’s CEO.