PGNiG Net Profit Surges (Poland)

In the first half-year of 2013, the PGNiG Group posted approximately PLN 1.43bn in net profit, versus PLN 45m in the same period last year.

The over thirty-fold rise in net profit was driven by a substantial increase in the volumes of crude oil produced and sold after the production facility in Lubiatów and the Skarv field on the Norwegian Continental Shelf were brought on stream.

Revenue posted by the PGNiG Group in the first half of 2013 was close to PLN 16.8bn, up 14% on the same period of the previous year, as sales of crude oil doubled and sales of gas went up 10%. At the operating level, the Group reported strong EBITDA growth (by 225%) to over PLN 3.3bn (compared with PLN 1bn in H1 2012), chiefly on the back of improved results across all business segments.

In the second quarter of 2013, the Group recorded PLN 354m in net profit, against net loss of PLN 262m in the corresponding period of 2012. Q2 2013 revenue grew 12% to PLN 6.5bn, year on year, lifting EBITDA nearly 500%, to PLN 1.36bn.

“A major driver of the Group’s financial performance was the launch of petroleum production from our two key projects. This goes to reinforce our conviction that we should further intensify our focus on the upstream area,” stressed Jerzy Kurella, acting President of the PGNiG Management Board. “Another positive trend to note was the improved performance across all the remaining business segments. This is very important considering the challenges which lie ahead of us, especially the imminent market deregulation, for which we are busily preparing.”

1 Polish zloty = 0.316056 U.S. dollars