In the first half of 2020, the PGNiG Group generated revenue of PLN 21.04bn and a net profit of PLN 5.92bn. Its EBITDA amounted to PLN 9.35bn and EBIT was PLN 7.65bn.

“Despite the turmoil caused by the coronavirus pandemic, we delivered excellent financial results in H1 2020. PGNiG achieved the best financial results among those reported for the first half of the year and the quarter by Polish listed companies, in the history of the Warsaw Stock Exchange,” commented Jerzy Kwieciński, President of PGNiG Management Board. The company was the best in quarterly terms in terms of EBIT and EBITDA as well as net profit, and in semi-annual terms in terms of EBIT and EBITDA.

“The figures reflect the decline in gas procurement costs caused be the change made to the pricing formula under the Yamal contract after PGNiG won the arbitration proceedings. As announced, we are pursuing the objective of growing the PGNiG Group shareholder value,” added Mr. Kwieciński.

Exploration and Production

In H1 2020, the E&P segment’s revenue came in at PLN 2.12bn. It went down 29% year on year, driven by a 34% fall in oil prices in PLN, with growth of oil production up 7% year on year. The average price of gas on the Day-Ahead Market of the Polish Power Exchange (PPX) in the first half of the year fell by as much as 43% relative to H1 2019. The segment’s performance in H1 2020 was also affected by recognition of impairment losses on non-current assets of PLN 853m.

Trade and Storage

In H1 2020, the T&S segment’s revenue dropped by 8% year on year, to PLN 16.48bn, despite a 6% increase in total sales of natural gas, to 16.90 bcm. The average gas price in transactions made on the PPX fell 21% in the period. At the same time, LNG imports volumes grew 24%, to 2.19 bcm. A factor with a strong bearing on the segment’s performance was the reduction in operating expenses related to natural gas procurement, after PLN 5.69bn was recognised as the effect of settlements for the period from 2014 to February 2020 under the annex to the Yamal contract. In addition, the segment reported foreign exchange gains of approximately PLN 300m on the carrying amount of the mutual settlements.

Distribution

In H1 2020, the volume of distributed gas was 6.19 bcm, i.e. at a level similar to that reported in H1 2019 (down 2% year-on-year). Revenue from distribution services grew to PLN 2.28bn (up 1% year on year). The segment’s EBITDA rose by 5%, to PLN 1.17bn.

Generation

In H1 2020, the segment reported a 5% year-on-year growth in revenue, to PLN 1.48bn. Revenue from sale of heat rose 7% year on year, to PLN 790m, on slightly lower sales volumes (down 1% year on year) and higher tariffs. In addition, the average monthly temperatures were 0.3°C lower in the first half of 2020 than in the corresponding period of 2019. Revenue from sales of electricity (own generation) decreased by 6% year on year, to PLN 506m, with sales volumes down 11%, to 2.02 TWh.