Annual Report 2013

Last year, we earned a net profit of PLN 1.9 bn. On the operating level, EBITDA totalled PLN 5.6 bn, up 22% year on year, with EBIT of almost PLN 3.2 bn, up 24% year on year. 2013 also saw a 12% rise in the PGNiG Group’s revenue, to more than PLN 32 bn. Revenue was up across all product segments, notably crude oil and condensate. In fact, the record-high crude production and sales were the main driver of our solid 2013 performance. In consistent pursuit of our strategy of investment in oil and gas production, we commenced production from the Lubiatów field, which is one of the most modern oil and gas production facilities in Europe and the largest upstream project completed in Poland in the recent years, and we also launched production from the Skarv field on the Norwegian Continental Shelf. These projects allowed us to more than double our crude oil and condensate output and sales, to 1.1 m tonnes, leading to a 45% surge in revenue posted by the Exploration and Production segment.

2014 keeps bringing new tasks and challenges, including those related to market liberalisation, review and renegotiation of purchase contracts, strengthening of our corporate governance framework, and restructuring of the PGNiG Group. We are also planning to make necessary organisational changes in the sales segment, driven by our ambition to create a business line that would be delivering on our customers’ needs in keeping with the highest standards of professional service. 2014 is also a year of new investment in the areas of exploration for and production of conventional and shale gas and oil, both in Poland and abroad.

Our overriding priorities for 2014 and the following years are to build the value of the PGNiG Group and to fulfil the expectations of our Shareholders and Customers.

Mariusz Zawisza
President of the PGNiG Management Board