PGNiG Stung by Low Prices in Q3
Profits at Poland’s PGNiG slumped in the third quarter on weaker prices, despite a growth in gas sales volumes.
The company’s net income was zloty 0.03bn ($8mn) in the three months, versus zloty 0.55bn a year before, according to results it published on November 14. Consolidated Ebitda weakened to zloty 0.8bn, from zloty 1.47bn, with upstream Ebitda more than halving to zloty 0.68bn.
“The group’s third-quarter performance was driven by low oil and gas prices prevailing on energy exchanges,” said the company, which is also involved in oil and gas trade and storage, distribution and power generation.
Day-ahead prices for gas on Poland’s TGE power exchange averaged zloty 51.20/MWh in the third quarter, compared with zloty 112.21/MWh a year before. The price of Brent oil was down 18% yr/yr, eating into PGNiG’s upstream revenues.
PGNiG’s production in the quarter was stable at 1.1bn m3, while external sales volumes climbed 8% to 5.52bn m3. But bearish prices meant an 8% decline in revenues to zloty 7.03bn.