Slide 1: PGNiG Group results for Q3 and first nine months of 2015
PGNiG Group results for Q3 and first nine months of 2015 November 6th 2015
Slide 2: Financial highlights − Q3 2015
Financial highlights − Q3 2015 (PLNm) Q3 2014 Q3 2015 % Revenue 6,436 6,305 (2%) Revenue from high-methane (E) gas sales up PLN 110m, to PLN 4.7bn in Q3 2015, with sales Operating expenses (excl. D&A) (4,917) (4,992) 2% volume up 0.4 bcm year on year, to 3.7 bcm, driven by the exchange sale requi
Slide 3: Q1−Q3 2015 financial highlights
Q1−Q3 2015 financial highlights Q1-Q3 Q1-Q3 (PLNm) % 2014 2015 Revenue 22,817 26,695 17% Revenue from E gas sales up PLN 4.7bn, to PLN 21.1bn in Q1−Q3 2015, with sales Operating expenses (excl. D&A) (17,831) (21,386) (20%) volume up 4.6 bcm year on year, to 15.5 bcm, driven by the exchange sale r
Slide 4: Business segments – EBITDA in Q1−Q3 2015
Business segments – EBITDA in Q1−Q3 2015 Q1-Q3 Q1-Q3 Contribution to (PLNm) % Revenue from sales of oil and condensate 2014 2015 Group's result down PLN 0.6bn year on year. Exploration and Production 2,935 2,309 (21%) 44% Trade and Storage 282 758 169% 14% Lower unit gas purchase costs and posi
Slide 5: Efficiency Improvement Programme – 2016 target raised to PLN 0.94bn
Efficiency Improvement Programme – 2016 target raised to PLN 0.94bn Plan Achieved gains 84% of savings planned for 2015 delivered in Q1−Q3 2015 465 • Setting efficiency improvement 289 targets for PGNiG Group 197 segments and companies 472 • Defining the scope and timing of 260 275 275 275 efficienc
Slide 6: Performance drivers
Performance drivers Stronger USD and stable EUR against PLN yoy In Q3 2015, 9-month average of crude oil prices in USD down 41% year on year and down 18% quarter on quarter PLN USD/bbl 4,5 4.17 4.19 140 4,0 120 109 3.77 100 + 20% 102 3,5 80 3.15 64 60 3,0 40 50 2,5 20 01'14 04'14 07'14 09'14 12'14 0
Slide 7: Performance drivers
Performance drivers Marked tariff reductions over the past periods. In Q3 2015 – 9% lower year-on-year average regulated price. Price in the chart is calculated on the combined tariff sales of PGNiG SA and PGNiG OD to customers in Poland. PPE transactions, impact of the discount policy and sales of
Slide 8: Segments – Exploration and Production
Segments – Exploration and Production (PLNm) Q3 2014 Q3 2015 % Revenue 1,433 1,179 (18%) Revenue from sales of crude oil and condensate down PLN 0.12bn year on year, with oil prices in PLN Operating expenses (excl. D&A) (439) (412) (6%) down over 41% and sales volumes up 36%, to 356 thousand tonn
Slide 9: Segments – Trade and Storage (1)
Segments – Trade and Storage (1) (PLNm) Q3 2014 Q3 2015 % Rise in revenue from gas sales in the Trade and Storage segment from PLN 4.8bn to PLN 4.9bn, with Revenue 5,300 5,296 shifts in the sales structure and prices (exchange sale requirement). Operating expenses (excl. D&A) (5,175) (5,362) 4%
Slide 10: Segments – Trade and Storage (2)
Segments – Trade and Storage (2) Gas inventory levels (bcm) Volumes of gas injected to underground 3 storage facilities increased in Q3 2015 2,5 2.77 compared with 2014 due to gas purchase 2.72 cost being lower year on year and quarter on 2 quarter. 2.05 2.06 1,5 1.80 Volume of gas imported by P
Slide 11: Segments – Distribution
Segments – Distribution (PLNm) Q3 2014 Q3 2015 % Volume of distributed gas up 6% year on year, to 1.68 bcm, with tariff prices up 3% as of January Revenue 887 1,030 16% 2015. Operating expenses (excl. D&A) (514) (433) (16%) Net result of system balancing at PLN 175m in Q3 2015, compared with PL
Slide 12: Segments – Heat and Power Generation
Segments – Heat and Power Generation (PLNm) Q3 2014 Q3 2015 % Revenue from sales of heat down 4%, to PLN Revenue 291 239 (18%) 0.11bn, with volumes down almost 6% and a higher heat tariff effective from August 15th Operating expenses (excl. D&A) (270) (234) (13%) 2015. Revenue from electricity
Slide 13: Effective operating cost management in Q3 2015
Effective operating cost management in Q3 2015 (PLNm) Q3 2014 Q3 2015 % Reduced trading in electricity purchased Electricity for trading (300) (249) (17%) from other parties. Other raw materials and consumables used (177) (157) (11%) Group companies' expenses down following a workforce reductio
Slide 14: Appendix
Appendix
Slide 15: Changes on the Polish gas market
Changes on the Polish gas market Q1-Q3 Q1-Q3 Since August 1st 2014, the PGNiG Group's Gas sales volume (mcm) % 2014 2015 gas sales volumes have included both PGNiG SA's sales through the exchange and PGNiG Total PGNiG Group 11,805 16,460 39% OD's sales to end customers and on the exchange. PGNiG
Slide 16: Gas trading and retail sales after August 1st 2014
Gas trading and retail sales after August 1st 2014 Gas sold to key customers: above 25 mcm annually (4.6 bcm in 2014) Production Direct sales PGNiG SA (0.93 bcm in 2014) Gas purchase Polish Power Exchange (3.74 bcm in 2014) PGNiG Obrót Polish Power 6.7m customers Detaliczny (7.7 bcm of gas consumed
Slide 17: Production and sales volumes
Production and sales volumes NATURAL GAS PRODUCTION, PGNiG Group (mcm) Q3 2015 Q2 2015 Q1 2015 FY 2014 Q4 2014 Q3 2014 Q2 2014 Q1 2014 FY 2013 HIGH-METHANE GAS (E) 515 507 501 1,876 440 475 482 479 1,890 including in Poland 359 362 367 1,457 368 361 362 367 1,550 including in Norway 156 145 134 419