PGNiG Integrated ESG Report 2021

BUILDING
A MULTI-UTILITY
GROUP

ACQUISITION OF
INEOS ASSETS
IN NORWAY

BUILDING A PORTFOLIO
OF LONG-TERM LNG
SUPPLY CONTRACTS

2021 MANAGEMENT BOARD’S
2021 SUMMARY

When I took over as President of the Management Board of PGNiG SA in April, the war in Ukraine was already ongoing, and European energy markets were anxiously looking east, concerned about the continuity of supply of natural gas and other fuels. Poland is safe thanks to PGNiG’s long-standing diversification strategy, but this does not mean we can rest on our laurels.

Iwona Waksmundzka–Olejniczak President of the Management Board

KEY FIGURES

PLN bn Revenue

6.0

PLN bn Net profit

101.6

PLN bn Total assets

15.6

PLN bn EBITDA

24.5

thous. Employees

11.6

PLN bn EBIT

36.4

PLN bn Market capitalisation

13.6

ROE

201

thous. km Distribution network length

Generating units

1.4

bcm Crude oil and condensate production

5.4

bcm Natural gas production

The PGNiG Group’s results for 2021 demonstrate that even amid a hydrocarbon price turmoil and pan-European gas crisis, PGNiG is able not only to maintain stable operations, but also to improve its performance and consistently pursue its strategy, which creates the Group’s value and enhances the security of gas supplies.

Przemysław Wacławski Vice President of the Management Board, Finance

The Group’s financial performance was mainly driven by steep rises in the prices of hydrocarbons, especially natural gas, whose prices in Europe hit all-time highs. This boosted the Group’s revenue.

The high prices of natural gas supported robust performance of the Exploration and Production segment, which posted a strong revenue growth of over 240% year on year. As a result, the segment’s share in the PGNiG Group’s EBITDA was as much as 87%, which means a considerable improvement on 2020, when upstream operations accounted for a mere 7% of the Group’s EBITDA.

OUR
ENVIRONMENT

CHANGES IN THE GROUP’S
ENVIRONMENT IN EARLY 2022

The unprecedented surge in commodity prices since September 2021 and the level of price tariffs approved for the fourth quarter of 2021 and for 2022 have led to an increase in the cash requirements of PGNiG Group companies.

OUR
ENVIRONMENT

MACROECONOMIC
ENVIRONMENT

In 2021, the prices of natural gas in Europe rose sharply relative to prices quoted at the US Henry Hub. In the same period, the average price of natural gas at the Dutch TTF hub was EUR 47.14/MWh.

OUR
ENVIRONMENT

MARKET
OVERVIEW

Consumption of high-methane grid gas in Poland in 2021 (excluding gas fuel supplied on the OTC and POLPX markets) was ca. 206.4 TWh. Relative to 2020, the volume increased by 13.3 TWh, or 6.9% year on year.