24
PGNiG
Key Events
January
On January 25
th
, ING changed its recommenda‑
tion for the PGNiG stock from “hold” to “buy”,
while raising the price target from PLN 3.90 to
PLN 5.10. As a result, the closing price of PGNiG
shares rose by 3.85%, from PLN 3.64 to PLN 3.78,
far outperforming the broad market (which gained
only 0.11%).
February
On February 5th, the then President of the Energy
Regulatory Offce Marek Woszczyk, when asked
by the media on his position regarding a possible
request by PGNiG for an increase in the gas fuel
tariff, said he could seen no reasons for granting
such a request. Given the excess supply on the
stock market on that day (the WIG index fell by
3.29%, while the WIG20 index shed 3.95%), the
above statement further contributed to the sell-off
of PGNiG shares. Eventually, the Company stock
receded 4.57% (from PLN 3.72 to PLN 3.55) – the
largest decline it posted in the entire 2010.
A week later, on February 12
th
, Vice-President
Sławomir Hinc told the media that the Company
intended to apply for an increase in the gas tariff.
Furthermore, the Vice-President for Finance stated
that due to the extremely low temperature in
January, the Company recorded very high volumes
of gas sales in that month. The news was very well
received by the market, as refected in the closing
price of PGNiG shares, which surged by 3.16%,
from PLN 3.48 to PLN 3.59.
March
On March 22
nd
, the PGNiG Group published its
2009 fnancial results, which were signifcantly
above market expectations (net proft and EBIT
exceeded the consensus by, respectively, 43% and
33%). The difference was mainly attributable to
the reversal of impairment losses in the amount of
approx. PLN 500m on property, plant and equip‑
ment included in the distribution assets. Despite
a bearish session, the closing price of Company
shares went up by 0.82%, to PLN 3.69 per share.
On March 23
rd
, the Management Board resolved to
allocate PLN 472 thousand from the 2009 net proft
to dividend payment, in the amount of PLN 0.08
per share. However, the market expected higher
dividend, as a result of which PGNiG shares gained
on that day a mere 0.27% (PLN 0.01), versus gains
in the range of 0.8% posted by the WIG20 and WIG
indices.
April
On April 15
th
, Vice-President of the Energy
Regulatory Offce Marek Woszczyk admitted in an
interview with TVN CNBC that – in view of the soar‑
ing oil prices and volatility of the PLN exchange
rate – the regulator would approve an increase of
the gas fuel tariff. Nonetheless, the Company share
price fell by 0.27% (down to PLN 3.67), with the
lowest trading volume in the whole year (exclud‑
ing December 31
st
) amounting to only one million
shares.
May
On May 12
th
, the PGNiG Group reported its results
for Q1 2010, which showed a signifcant year-on-
year improvement. However, the analyst expecta‑
tions were even more optimistic. The gap between
the actual and expected performance had an
adverse impact on the market’s perception of the
Company, albeit some analysts admitted that its
performance was sound. Eventually, the Company
share price dropped by 1.16%, from PLN 3.44 to
PLN 3.40.
On May 19
th
, the Warsaw Stock Exchange saw a
decline of 3.1% with a high trading volume. The
sell-off started in the early morning, triggered
chiefy by developments on the western mar‑
kets. WIG20 lost 2.70%, while PGNiG posted an
even steeper decline of 4.41%, from PLN 3.40 to
PLN 3.25. The next day witnessed an equally sharp
downturn on global markets – in Western Europe
the prices fell by more than 3%. Investor concerns
focused on the indebted European economies, and
were further aggravated by weak macroeconomic
data (Poland published weaker-than-expected
production growth data, while the US announced
that the situation on the labour market was worse
than forecast). The PGNiG stock shed another
2.77%, and bottomed out at PLN 3.16, the lowest
closing price in 2010.
After the trading session on May 26
th
, PGNiG shares
were included in the MSCI Poland index, which
boosted the volume of trading and share price dur‑
ing the session preceding the change. Not only did
the Company share price rise by a record 8.02%
(to PLN 3.50), but the volume of trading was at its
annual high (44 million shares).
Mission
Key Figures
Key Events
Letter from the
President of the
Management
Board
Management
Board
Letter from the
Chairman of the
Supervisory Board Supervisory Board
PGNiG on the Stock
Exchange
Strategy for the
PGNiG Group
until 2015
Exploration
and Production