Slide 1: PGNiG Group Q1 2015 Results
PGNiG Group Q1 2015 Results May 8th 2015
Slide 2: Financial highlights Q1 2015
Financial highlights Q1 2015 (PLNm) Q1 2014 Q1 2015 ∆% Revenue 9,535 12,495 31% Revenue from natural gas sales up PLN 3.2bn, to Operating expenses (excl. D&A) (7,354) (10,169) 38% PLN 10.8bn in Q1 2015, with sales volume up 2.8 bcm, to 7.7 bcm, driven by the exchange sale EBITDA 2,181 2,326 7% requi
Slide 3: Business segments – EBITDA Q1 2015
Business segments – EBITDA Q1 2015 Contribution (PLNm) Q1 2014 Q1 2015 ∆% to Group's Revenue from sales of oil and condensate result down PLN 0.2bn year on year Exploration and Production 1,126 878 (22%) 38% Trade and Storage 228 619 171% 27% Lower unit gas purchase costs Distribution 625 521 (17%)
Slide 4: Factors contributing to financial performance
Factors contributing to financial performance Nine-month average crude oil price in PLN up 9% yoy in Q1 2015 Stronger USD and stable EUR against PLN yoy due to lower crude prices and stronger USD 4,5 PLN 450 4.19 PLN/boe 400 358 4,0 +22% 3.73 330 350 3,5 300 3.06 328 250 3,0 200 201 2,5 150 01'13 04
Slide 5: Segments – Exploration and Production
Segments – Exploration and Production Revenue from sales of crude oil down (PLN 0.2bn (PLNm) Q1 2014 Q1 2015 ∆% year on year), with prices in PLN down almost 40% and sales volumes up 21%. Revenue 1,617 1,217 (25%) Sales volumes of helium preserved amid growing Operating expenses (excl. D&A) global s
Slide 6: Segments – Trade and Storage (1)
Segments – Trade and Storage (1) (PLNm) Q1 2014 Q1 2015 ∆% Rise in revenue from gas sales in the Trade and Storage Revenue segment from PLN 7.4bn to PLN 10.7bn, with shifts in the 7,949 11,190 41% sales structure and prices (exchange sale requirement). Operating expenses (excl. D&A) (7,721) (10,571)
Slide 7: Segments – Trade and Storage (2)
Segments – Trade and Storage (2) Gas inventory levels (bcm) 3 Large volumes of gas withdrawn from storage facilities in Q4 and Q1 due to 2,5 reduced deliveries from sources east of 2.72 2 2.48 Poland. This caused the volume of gas in 2.09 2.05 2.06 storage to fall from the record 2.7 bcm in 1,5 1.79
Slide 8: Segments – Distribution
Segments – Distribution (PLNm) Q1 2014 Q1 2015 ∆% Gas distribution volume up 1% year on year (average air temperature lower by 0.6oC), to 3.26 Revenue 1,252 1,316 5% bcm. Operating expenses (excl. D&A) (627) (795) 27% Net cost of system balancing at PLN -153m in Q1 EBITDA 625 521 (17%) 2015, compare
Slide 9: Segments – Generation
Segments – Generation (PLNm) Q1 2014 Q1 2015 ∆% Revenue from sales of heat up 7%: PLN Revenue 651 688 6% 0.43bn, with volumes down almost 2% and a higher heat tariff effective from August 1st 2014. Operating expenses (excl. D&A) (435) (378) (13%) Revenue from sales of electricity from own sources up
Slide 10: Operating expenses – Q1 2015
Operating expenses – Q1 2015 (PLNm) Q1 2014 Q1 2015 ∆% Sales volume up 2.8 bcm yoy, to 7.7 bcm, with Cost of gas sold (5,177) (8,206) 59% lower unit cost of gas. Launch of operations by Electricity for trading (231) (203) (12%) the retail subsidiary PGNiG Obrót Detaliczny in August 2014. Other raw m
Slide 11: Efficiency Improvement Programme of PGNiG Group (PPE)
Efficiency Improvement Programme of PGNiG Group (PPE) Planned gains (accumulated) Achieved gains +17% • Setting efficiency improvement 786 targets for PGNiG Group individual segments and 500 companies 260 304 • Defining the scope and timing of efficiency improvement measures 2014 2015 2016 • Deliver
Slide 12: Debt and sources of financing
Debt and sources of financing Financing sources as at March 31st 2015 (PLNm) 8000 Low debt level is a good starting point for available used investments under the 2014–2022 Strategy 6000 Available financing programmes for PLN 4000 14.5bn, including PLN 9.6bn underwritten 8,500 2,000 2,860 Net debt /
Slide 13: Appendix
Appendix
Slide 14: Changes on the Polish gas market
Changes on the Polish gas market Gas sales volume (cubic meters) Q1 2014 Q1 2015 ∆% Since August 1st 2014, PGNiG Group's gas sales volumes have included both PGNiG Total PGNiG Group 4,900 7,688 57% SA's sales through the exchange and PGNiG OD's sales to end customers and on the PGNiG SA 4,421 4,342
Slide 15: 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 16: Production and sales volumes
Production and sales volumes NATURAL GAS PRODUCTION, PGNiG Group (mcm) Q1 2015 FY 2014 Q4 2014 Q3 2014 Q2 2014 Q1 2014 FY 2013 Q4 2013 Q3 2013 Q2 2013 Q1 2013 HIGH-METHANE GAS (E) 499 1 876 440 475 482 479 1,890 483 481 484 443 including in Poland 367 1 457 368 361 362 367 1,550 384 387 387 393 incl