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PGNiG Group reports 1H20 financial results

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LNG Industry,

In the first half of 2020, the PGNiG Group saw highest-ever growth of its financial results. Its net profit and EBIT increased fourfold and EBITDA tripled year on year. The Group reported increased volumes of natural gas sales and higher revenue from sale of heat.

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

“Despite the turmoil caused by the coronavirus pandemic, we delivered excellent financial results in 1H20. 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 Kwiecinski, 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. Kwiecinski.

Exploration and production

In 1H20, the E&P segment’s revenue came in at PLN 2.12 billion. It went down 29% y/y, driven by a 34% fall in oil prices in PLN, with growth of oil production up 7% y/y. 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 1H19. The segment’s performance in 1H20 was also affected by recognition of impairment losses on non-current assets of PLN 853 million.

Trade and storage

In 1H20, the T&S segment’s revenue dropped by 8% y/y, to PLN 16.48 billion, despite a 6% increase in total sales of natural gas, to 16.90 billion m3. 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 billion m3. A factor with a strong bearing on the segment’s performance was the reduction in operating expenses related to natural gas procurement, after PLN 5.69 billion 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 300 million on the carrying amount of the mutual settlements.


In 1H20, the volume of distributed gas was 6.19 billion m3, i.e. at a level similar to that reported in 1H19 (down 2% y/y). Revenue from distribution services grew to PLN 2.28 billion (up 1% y/y). The segment’s EBITDA rose by 5%, to PLN 1.17 billion.


In 1H20, the segment reported a 5% y/y growth in revenue, to PLN 1.48 billion. Revenue from sale of heat rose 7% y/y, to PLN 790 million, on slightly lower sales volumes (down 1% y/y) 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% y/y, to PLN 506 million, with sales volumes down 11%, to 2.02 TWh.

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