Strategy implementation in 2016
The PGNiG Group’s activities depend strongly on external factors. Key challenges facing the Group in 2016:
To address the challenges facing the PGNiG Group in the coming years, in early 2016 we revised and updated our strategy. On April 4th, 2016, the PGNiG Supervisory Board approved the PGNiG Group’s updated Strategy for 2014–2022. Following review and verification, we updated the macroeconomic, market and business framework and we redefined our strategic ambitions. As a result, we modified our strategic initiatives and added some new ones. The updated Strategy continues to focus on the following four key business areas:
- maintaining stable trading volumes (retail and wholesale);
- maximising cash flows in infrastructure and generation For more information, see Sections 5.3.2. and 5.4.2;
- strengthening and transforming exploration and production For more information, see Section 5.1.2;
- laying foundations for value chain growth.
The updated Strategy contemplates a slight increase in the Group’s EBITDA, our principal performance measure, to over PLN 7bn in 2022. In the period covered by the Strategy, capital expenditure on organic growth and acquisitions was maintained at PLN 40bn−50bn, with the net debt to EBITDA ratio comfortably below 2.0 in 2022 and the current dividend policy upheld.
In 2016, the Company delivered on its strategic objectives in each business area. Key achievements in 2016: