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In the nine months to September 30th 2017, revenue reached PLN 24.89bn, up from PLN 23.05bn in the same period last year (an increase of 8%). Operating expenses, including amortisation and depreciation, also increased, to PLN 21.63bn (up 4% y/y), mainly on higher gas procurement costs. Despite the higher expenses, the Group improved its EBITDA, EBIT and net profit. EBITDA rose 23% (to PLN 5.26bn), while normalised EBITDA, adjusted for one-offs, increased 3% year on year, to PLN 5.14bn. Operating profit (EBIT) grew 41%, to PLN 3.26bn, and net profit was PLN 2.47bn, compared with PLN 1.63bn in the nine months to September 30th last year. The total volume of the Group's gas sales expanded 11%, from 16.9 bcm to 18.8 bcm.

“The improved performance has been delivered thanks to the consistent pursuit of the Group’s strategy embarked upon earlier this year. We are diversifying the sources of gas supplies and engaging in projects of strategic importance for the country's energy security, while generating higher revenues and profits,” said Piotr Woźniak, President of the Management Board of PGNiG SA.

“The gas sales is also rising. The third quarter, which is usually a warm and steady period in gas industry has surprised us very positively this year. According to our analysis it has never happened before in that very quarter that the market volume in Poland would increase by 300 mcm year on year. It shows fundamental changes in the market – the gas demand is instantly growing due to the growth in economy,” added Piotr Woźniak.

Trade and Storage

The largest contributor to the Group’s revenue was the Trade and Storage segment, with sales of PLN 20.87bn (up 6% y/y). Revenue from the segment’s gas sales increased by PLN 1.4bn, to PLN 19.5bn. Gas imports also increased, to 10.04 bcm, from 8.56 bcm a year earlier. However, PGNiG reduced the amount of gas imported from across Poland’s eastern border – both in terms of its share in total imports (from 90% to 71%) and in nominal terms (from 7.71 bcm to 7.12 bcm). The share of LNG in total imports came to 13%. EBITDA of the Trade and Storage segment was negative, at PLN -190m, reflecting the increase in gas procurement costs driven by rising oil prices and exchange indices.

Exploration and Production

The strongest sales growth (19%) was reported by the Exploration and Production segment, with PLN 4.42bn in revenue. This was mainly driven by higher market prices of gas and crude oil. Exploration and Production also posted the highest EBITDA of PLN 3.04bn, 96% more than after the three quarters of 2016 (PLN 2.92bn and 30% increase, respectively, when adjusted for one-offs).

Distribution

The Distribution segment improved its revenue by 6%, to PLN 3.70bn. The volume of distributed gas grew by nearly 14% on a year before, as a combined effect of newly built service lines, the weather conditions and economic growth. However, the intensive network rollout coupled with an increase in the number of employees at the reorganised business resulted in the segment’s EBITDA coming in unchanged relative to the corresponding period of 2016 (PLN 1.96bn).

Generation

Revenue of the Generation segment was PLN 1.53bn, a year-on-year increase of 6%. The volume of heat sales grew by 14%, and of electricity sold from own sources ­­­– by 8% on the previous year. The segment’s EBITDA came in at PLN 0.6bn (up 8% y/y).