PGNiG profit hit by high Russian gas prices

PGNiG profit hit by high Russian gas pricesImage courtesy of PGNiG

Polish Oil and Gas Company (PGNiG) saw its first-quarter net income slip 32 percent due to high cost of gas fuel purchased from sources east of Poland. 

The company reported a net income of 1.06 billion Polish zloty ($274.9 million) in the first three months of the year, compared to 1.57 billion Polish zloty in the corresponding period in 2018.

Commenting on the results, PGNiG president Piotr Woźniak said, “The high cost of gas fuel purchased from sources east of Poland weighed on the group’s performance, but imports from other sources – especially LNG – helped us mitigate the adverse impacts of the Yamal contract.”

The nine-month average Brent crude price in USD per barrel, affecting the Yamal contract delivery price, was a third higher than in the previous year.

The company succeeded in partly mitigating the negative effect of this factor on the segment’s performance by replacing gas sourced from east of Poland with supplies from other directions – primarily liquefied natural gas (LNG) and gas procured from suppliers based west and south of Poland.

In the first quarter of 2019, the volume of LNG supplies to the President Lech Kaczyński Terminal in Świnoujście reached 727 million cubic meters of the regasified fuel, a 44 percent increase year on year.

As for imports from the western and southern directions, they reached 1.15 billion cubic meters, more than three times the volume imported over the same period of 2018.

At the same time, the volume of gas procured in the first quarter of 2019 from the eastern direction was 1.79 billion cubic meters, down 40 percent year on year.

The segment posted PLN 11.69 billion in revenue, up by 15 percent year on year. In addition to other factors, the revenue increase was driven by gains on the gas purchase and sale hedging transactions, as well as a 2.5 percent increase in the average price of fuel gas in the new retail tariff effective from February 15th, 2019.

Share this article

Follow LNG World News

Events>

<< Sep 2019 >>
MTWTFSS
26 27 28 29 30 31 1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 1 2 3 4 5 6

6th Mozambique Gas Summit & Exhibit

This year’s edition will have a revamped programme for attendees.

read more >

Offshore Energy Exhibition and Conference 2019

The three-day event includes an exhibition where an expected 600+ supply chain companies will showcase their products and services.

read more >

LNGgc London

LNGgc is a fantastic way of raising attendees’ company profile within this market and creating greater awareness of their brand…

read more >

5th CWC China LNG & Gas International Summit & Exhibition

5th CWC China LNG & Gas International Summit & Exhibition will return 16 – 17 October 2019, bringing together the key players…

read more >