Corporate Presentation Financial Results of Q1 and FY 2015 May 2016
1. PGNiG Group & Polish Gas Market 2. PGNiG Segments Agenda Exploration and Production Trade and Storage Distribution Generation 3. Strategy, CAPEX, Debt 4. Appendix - Financial Results of Q1 and FY 2015
PGNiG Group and Polish Gas Market 3
Polands no.1 integrated group in the oil and gas sector 4
PGNiG on Warsaw Stock Exchange Fourth largest Polish company on the Warsaw Stock Exchange** Listed on Market cap. Significant WSE of PLN 29bn share in since (EUR 6.6bn, WIG 20 September USD 7.5bn)* index: 4.9% 2005 Stock…
Gas market in Poland Natural gas consumption by country in 2014 Primary energy consumption by fuel in 2014 bcm 80 100% 70,9 8% 4% Nuclear energy 13% 25% 80% 60 Renewables 60% 38% 40 Oil 40% 56% 26,3 18% Coal 20 14,7 16,3…
Operating segments of PGNiG Group
EBITDA 2010-2015 PGNiG Groups EBITDA* Stable EBITDA level due to diversified inflows sources PLNbn 7 Expoloration and Production Trade and Storage 6,4 6,1 Distribution Heat and Power Generation 6 5,6 5 4,6 4,4 3,1 2,4 4…
Exploration & Production summary Production volumes PGNiG SA is a leader in production of gas and crude oil in Poland mboe Natural gas Poland Natural gas Abroad 41,68 Crude oil and condensate Poland Crude oil and condensate Abroad…
International E&P activities Norway Licenses 19 USD 360m (Skarv) Licence cost NOK 1.95bn (Morvin, Vale, Vilje, Gina Krog) Skarv Skarv CAPEX approx. USD 800m (PGNiGs part) Morvin 59 mboe Reserves of the (Skarv) licence (2P)…
International E&P activities Africa and Asia African assets: Libya Asian assets: Pakistan Ghadames/Murzuq concession Kirthar concession agreement February 2008 agreement May 2005 shares PGNiG - 100% PGNiG 70% shares area…
Gas supply & sales Trade and Storage segment comprises: Sales of natural gas of PGNiG SA and PGNiG Retail (bcm) sales of natural gas both imported and domestic to retail and 24,0 wholesale markets, Polish Commodity Exchange Retail…
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…
Development of underground gas storage facilities UGS Capacity: 2005-2015: +1,5 bcm Existing UGS Important data: UGS in construction/extension Current no. of storage facilities 9 Capacity: actual/planned - including salt caverns 2…
Distribution Gas Distibution Company supplies natural gas from gas sellers to Stable EBITDA of the regulated segment households, industrial and wholesale customers, and is responsible for PLNm operation, maintenance and development…
Heat and Power Generation PGNiG Termika PGNiG Termika operating data January 2012 acquisition of 99.8% stake of Vattenfall Heat Poland S.A. from Vattenfall AB for PLN 3bn in cash (PLN 3.5bn EV) Installed heat power 4,782 MWt The…
Strategy, CAPEX, financing 17
Strategy of PGNiG Group for 2014-2022 Following a review of the PGNiG Group Strategy for 20142022, the PGNiG Group's vision and primary objective have been updated Mission statement Vision Primary objective Our vision is to grow…
Pillars of the PGNiG Group Strategy for 2014-2022 Strategy of the PGNiG Group for 20142022 A Maintaining stable value of sales B Maximising cash flows from C Strengthening and transforming the (both in retail and wholesale)…
Key strategic objectives Stabilisation of EBITDA at PLN 7.4bn in 2022 1 Increase in average annual capital expenditure on organic growth and acquisitions by approximately 30% relative to 20082013 2 Diversifying PGNiG's gas supply…
CAPEX estimate for the years 2014-2022: PLN 40-50 billion Annual CAPEX 2009 2015 CAPEX breakdown for 2014-2022 Generation 8% Trade and Storage 10% PLNbn CAPEX until Exploration and 8,0 7,5 2022: Production 54% PLN 40-50bn…
Debt and sources of financing Strong financial standing Financing sources (as at March 31st 2016) PLN m 10000 available used 8000 Dividend per share 6000 PLN 8 500 0,30 4000 2 000 2 990 2000 0,20 220 2 500 1 000 1 300 2…
2016 outlook Weaker results of Exploration and Production segment The fight for customers in the Trade and Storage falling natural gas prices on European markets favorable high global oil supply for the purchase price while putting…
Appendix
Financial highlights 2015 EBITDA down 4%, with oil and [PLNm] 2014 2015 % gas prices declining Revenue 34,304 36,464 6% Operating expenses (excl. D&A) (27,959) (30,384) 9% EBITDA 6,345 6,080 (4%) Depreciation and amortisation…
Financial highlights Q1 2016 Major impact of falling [PLNm] Q1 2015 Q1 2016 % commodity prices, gas market Revenue 12,495 10,980 (12%) liberalisation and the Efficiency Operating expenses (excl. D&A) (10,169) (8,587) (16%)…
EBITDA in Q12016 higher by 3% yoy EBITDA Q12016 Exploration and Production Revenue from sales of crude oil and condensate shrank by 120 million zoty year on year on the back of an almost 43 percent drop in the oil 2,326 / PLN 2,393m…
Performance drivers In Q1 2016, 9-month average of crude oil Noticeable impact of recent Stronger USD and EUR against PLN yoy prices down 44% year on year and down 6% qoq periods' tariff reductions on PLN 4,5 4.36 USD/bbl gas…
Operating expenses fuelled with increases in the cost of gas sold [PLNm] 2014 2015 1Q2016 Raw materials and consumables used (2,479) (2,211) (395) Employee benefits expense (2,827) (2,714) (545) Services (2,843) (2,674)…
EIP Over 1/3 of planned gaines in 2016- 18 already achieved in Q1 2016 The Efficiency Improvement Programme objectives: Programme aims to permanently reduce the manageable cost To set efficiency improvement targets for the individual…
Gas transport routes Supply diversification: LNG TERMINAL POLAND Increasing the level of supply security (I stage - 5 bcm, H2 2016) LITHUANIA Avoiding interruptions in gas supply (1.7/2.4 bcm, Reducing dependence on one source of…
Trade and Storage PGNiG Group (PGNiG SA, PGNiG Retail, PGNiG Supply&Trading) Margin on gas fuel (high-methane gas) gas sales volumes by customer group bcm 12% Polish Power 3,74 Exchange (TGE) 8,33 Accumulated Quarter…
Changes on the Polish gas market Gas market deregulation Gas sales volume [mcm] 2014 2015 1Q 2016 is affecting PGNiG's share in imports and sales structure Total PGNiG Group 18,609 23,000 7,986 Comments: PGNiG SA 13,751 13,177 4,612…
Tariff Model in Poland Monthly average gas prices in European Type of activity Regulatory mechanism import contracts and PGNiG tariff price PLN / '000 cm 2000 Direct sales None 1600 Cost of imports + cost of production (including…
Statement of financial position, statement of cash flows, financial ratios and headcount Group's statement of financial position (as at March 31st 2016) Headcount (at year end) PLNm thousand Other segments Generation Distribution…
Production and sales volumes NATURAL GAS PRODUCTION, PGNiG Group [mcm] 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) 509 2,031 508 515 507 501 1,876 440 475 482 479…
Glossary 2P Proven reserves of fossil fuels bbl barrel BGK Bank Gospodarstwa Krajowego boe / mboe Barrel of oil equivalent / Million barrel of oil equivalent (one barrel is approx. 0.136 tonnes) CAGR Compound annual growth rate…
Additional information Dates of publication of periodical reports Aleksandra Dobosiewicz IR Manager August November Desk: +48 22 589 46 71 Mobile:+48 665 004 847 Fax: +48 22 691 81 23 E-mail: aleksandra.dobosiewiczpgnig.pl 12 9…
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