Slide 1: PGNiG Group results for Q3 and 9M 2016
PGNiG Group results for Q3 and 9M 2016 November 9th 2016
Slide 2: Table of contents
Table of contents 1. Performance drivers 2. Financial highlights Q3 2016 3. Financial highlights Q1−Q3 2016 4. PGNiG Group EBITDA by segment 5. Segment performance Exploration and Production Trade and Storage Distribution Generation 6. Operating expenses 7. Efficiency Improvement Programme 8. Append
Slide 3: Performance drivers
Performance drivers Yoy appreciation of USD In Q3 2016, 9-month average Marked impact of recent and EUR against PLN of crude oil prices down 36% yoy periods' tariff reductions on PLN 4,5 USD/bbl 120 4.34 gas selling prices; average 4.19 regulated price down 15% +3.6% 100 yoy and 4% qoq in Q3 2016 4,
Slide 4: Financial highlights Q3 2016
Financial highlights Q3 2016 Q3 2016 results affected by a [PLNm] Q3 2015 Q3 2016 ∆% three-week scheduled Revenue 6,305 5,701 (10%) production stoppage in Operating expenses (excl. D&A) (4,992) (4,563) (9%) Norway EBITDA 1,313 1,138 (13%) Depreciation and amortisation (686) (619) (10%) EBIT 627 519
Slide 5: Financial highlights Q1−Q3 2016
Financial highlights Q1−Q3 2016 Major impact of falling [PLNm] Q1-3 2015 Q1-3 2016 ∆% commodity prices on operating Revenue 26,695 23,050 (14%) performance Operating expenses (excl. D&A) (21,386) (18,781) (12%) EBITDA 5,309 4,269 (20%) EBITDA adjusted* 5,458 4,983 (9%) Depreciation and amortisation
Slide 6: Business segments – EBITDA Q1−Q3 2016
Business segments – EBITDA Q1−Q3 2016 Exploration and Production Revenue from sales of oil and condensate down Q1-3 2015 [PLNm] Q1-3 2015 Q1-3 2016 Q1-3 2016 adjusted* PLN 422m or 27% yoy. adjusted* Effect of the PLN -710m impairment losses in Exploration and Production 2,309 990 2,444 1,683 Q1-3 20
Slide 7: Segments – Exploration and Production
Segments – Exploration and Production Adverse impact of low oil [PLNm] Q3 2015 Q3 2016 ∆% prices, aggravated by lower sales volumes Revenue 1,178 957 (19%) Operating expenses (excl. D&A) (412) (461) 12% EBITDA 766 496 (35%) Commentary: Revenue from sales of crude oil and Depreciation and amortisatio
Slide 8: Segments – Trade and Storage (1/2)
Segments – Trade and Storage (1/2) Margin on E gas fuel at 5%, [PLNm] Q3 2015 Q3 2016 ∆% with operating margin on the product at -3% in Q3 2016 Revenue 5,296 4,727 (11%) Operating expenses (excl. D&A) (5,362) (4,735) (12%) Commentary: Revenue from gas sales in Trade & EBITDA (66) (8) (88%) Storage d
Slide 9: Segments – Trade and Storage (2/2)
Segments – Trade and Storage (2/2) PGNiG Group gas sales volumes up 0.4 bcm yoy in Q3 2016, with stable volumes of LNG cargoes received at the gas sold by PGNiG SA on the Polish Power Exchange Świnoujście terminal on a bcm 10 Gas inventory levels Volume of gas sold by PGNiG Group Volume of gas impor
Slide 10: Segments – Distribution
Segments – Distribution Volumes of distributed gas [PLNm] Q3 2015 Q3 2016 ∆% rising in customer groups charged lower tariff rates Revenue 1,030 1,037 1% Operating expenses (excl. D&A) (433) (495) 14% EBITDA 597 542 (9%) Depreciation and amortisation (224) (232) 4% EBIT 374 310 (17%) Commentary: Volu
Slide 11: Segments – Generation
Segments – Generation Inclusion of SEJ and PEC in [PLNm] Q3 2015 Q3 2016 ∆% consolidated financial statements with an impact on Revenue 239 315 32% segment performance Operating expenses (excl. D&A) (234) (206) (12%) Commentary: EBITDA 5 110 22x Revenue from sales of heat up 13% yoy, to PLN 128m, on
Slide 12: Efficiency Improvement Programme – almost PLN 1bn in savings by 2017
Efficiency Improvement Programme – almost PLN 1bn in savings by 2017 The Programme aims to Programme objectives: permanently reduce the To set efficiency improvement targets for the individual segments and entities within manageable cost base across the PGNiG Group and to define related benefits to
Slide 13: Lower cost of gas sold in Q3 2016
Lower cost of gas sold in Q3 2016 Increase in cost of [PLNm] Q3 2015 Q3 2016 ∆% regasification and oil and gas production charges offset by Fuels for heat and power generation (74) (68) (8%) lower cost of gas sold Other raw materials and consumables used (407) (458) 13% Employee benefits expense (52
Slide 14: Contact details
Contact details More information Aleksandra Dobosiewicz Department Head Phone: +48 22 589 46 71 Mobile: +48 665 004 847 Fax: +48 22 691 81 23 Email: aleksandra.dobosiewicz@pgnig.pl Weronika Zając Investor Relations Specialist Phone: +48 22 589 46 51 Mobile: +48 885 888 870 Fax: +48 22 691 81 23 Emai
Slide 15: Appendices
Appendices: 1. Changes on the Polish gas market 2. Gas trading and retail sales 3. Production and sales volumes 4. Debt and sources of funding 5. Statement of financial position, cash flow, financial ratios and headcount
Slide 16: Changes on the Polish gas market
Changes on the Polish gas market Gas market deregulation is Gas sales volume (mcm) 2014 2015 Q1-3 2016 affecting PGNiG's share in imports and sales structure Total PGNiG Group 18,609 23,000 16,993 PGNiG SA 13,641 13,228 10,061 Commentary: Since August 1st 2014, the PGNiG Group's including PGNiG SA t
Slide 17: Gas trading and retail sales in Poland after August 1st 2014
Gas trading and retail sales in Poland after August 1st 2014 Gas sold to key customers: above 25 mcm annually 4.6 bcm in 2014 4.3 bcm in 2015 Production PGNiG SA Direct sales 0.93 bcm in 2014 0.72 bcm in 2015 Gas purchase Polish Power Exchange 3.74 bcm in 2014 8.09 bcm in 2015 PGNiG Obrót 6.7m custo
Slide 18: Production and sales volumes
Production and sales volumes NATURAL GAS PRODUCTION, PGNiG Group (mcm) Q3 2016 Q2 2016 Q1 2016 FY 2015 Q4 2015 Q3 2015 Q2 2015 Q1 2015 FY 2014 Q4 2014 Q3 2014 Q2 2014 Q1 2014 HIGH-METHANE GAS (E) 450 487 509 2,031 508 515 507 501 1 876 440 475 482 479 including in Poland 346 349 359 1,458 369 359 36
Slide 19: Debt and sources of funding
Debt and sources of funding Dividend per share Sources of funding (as at September 30th 2016) PLN PLNm 0,30 10 000 available used 0,20 8 000 0,10 6 000 8,400 4 000 0,00 2,000 3,020 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2 000 Up to 50% of consolidated net profit to 370 290 2,500 2,16
Slide 20: Statement of financial position, cash flows, financial ratios and headcount
Statement of financial position, statement of cash flows, financial ratios and headcount Group's statement of financial position (as at September 30th 2016) Headcount (at year end) PLNm thousand 60 000 40 Non-current Current Equity 50 000 33.1 32.3 31.2 11 655 2.2 2.3 29.3 40 000 30 2.0 1.1 1.1 1.6