Strategy for the PGNiG Group

The ultimate strategic objective pursued by PGNiG SA is to deliver growth in shareholder value. In pursuit of that objective, in mid-2011 the Company adopted the ‘Updated Strategy for the PGNiG Group until 2015’. In implementing the strategy, it takes into account considerations related to the long-term development and liberalisation of the Polish gas market.

In December 2012, the Company adopted the ‘Short-Term Value Creation Strategy for the PGNiG Group in 2012–2014’. This operational strategy is a set of coordinated activities geared towards achievement of the Group’s primary strategic objective. The document, adopted in December, is consistent with the ‘Updated Strategy for the PGNiG Group until 2015’.

PGNiG is one of Poland’s major companies − in terms of revenue and earnings, it ranks among the largest and most profitable Polish businesses. It is also one of Poland’s largest employers.

The Group’s main strategic objectives form its vision to become, by 2015, a modern and efficiently managed organisation controlling almost the entire value chain in the gas sector, and holding assets in the fuel and power generation sectors. Attainment of these strategic objectives will depend on its activities in three areas:

The ‘Short-Term Value Creation Strategy for the PGNiG Group until 2014’ is a comprehensive document describing a set of coordinated activities that are geared towards the delivery of 19 initiatives broken down into three business areas.

Strategia PGNiG

 

Initiatives in the Upstream area:

  1. Appraisal and development of unconventional hydrocarbon reserves under held licences;
  2. Cooperation with external partners in the area of hydrocarbon exploration and production;
  3. Escalation of the conventional hydrocarbon exploration program in Poland;
  4. Optimisation of upstream operations outside of Poland

Initiatives in the Market area:

  1. Enhancement of efficiency in the marketing and customer service areas;
  2. Implementation of integrated product range;
  3. Implementation of new marketing policy;
  4. Active participation in and support of the gas market deregulation;
  5. Development of the power generation segment;
  6. Change in pricing rules for gas import contracts;
  7. Change in the structure of imported gas sources;
  8. Centralisation of the wholesale trading function at the PGNiG Group.

Initiatives in the Business Model area:

  1. Optimisation of the HR management system at PGNiG;
  2. Implementation of project/project portfolio management system;
  3. Establishment of Shared Services Centre;
  4. Restructuring of the PGNiG Group’s core businesses;
  5. Restructuring of the PGNiG Group’s non-core businesses;
  6. Restructuring of employment;
  7. Optimisation of the storage segment at the PGNiG Group.

Thanks to the ‘Short-Term Value Creation Strategy for the PGNiG Group until 2014’, the Company was able to implement its ambitious investment plans, and at the same time reduce debt and generate surplus cash, which may be used to finance other investment projects.