PGNiG Reports Slower Gas Sales on Milder Winter

Poland’s PGNiG reported a 6% year-on-year increase in the first six months of 2014. Despite the profit growth in the Exploration and Production segment, the positive result does not reflect some problems in the gas segment.  

‘The key factors which impacted the Trade and Storage segment's performance in H1 2014 were a 0.6 bcm year-on-year decline in the volume of gas sales, and concurrent growth in off-tariff sales of gas on the Polish Power Exchange. The segment's revenue fell 4%, to PLN 13.3bn,’ the company wrote on Thursday.

The slower gas sales and the related warm winter impacted on the revenues for the first six months of the year. 

‘The Group reported revenue of just under PLN 16.4bn, down 2% from PLN 16.7bn in H1 2013.’

On the other hand, the high crude oil output supported some positive financial results.

‘The group's EBITDA, affected by an impairment loss of approximately PLN 500m, grew by 4%, to approximately PLN 3.5bn (PLN 3.3bn in H1 2013). On an adjusted basis (net of impairment losses), EBITDA increased 21% in H1 2014, to almost PLN 4bn.’