Annual Report 2013

In 2013 the Supervisory Board, in consultation with the Management Board, made a number of decisions regarding development of oil and gas reserves in Poland and abroad, expansion of underground storage capacities and distribution of gas fuel supplies. All these initiatives were geared towards improving Poland’s energy security and building value for PGNiG shareholders.

In 2013 the PGNiG Group more than doubled the crude oil and condensate output from its Polish and foreign assets to 1.1 m tonnes, from 492 ths tonnes in 2012. PGNiG’s share in domestic production of liquid hydrocarbons was close to 80%, which confirms the direction taken in this market segment was the right one.

The Supervisory Board supported the PGNiG Group in its reorganisation effort to help bring about major operational efficiency improvements. The process is still ongoing, and the Group will escalate its reorganisation efforts further in the future.

In fulfilling a key part of its remit, in 2013 the Supervisory Board conducted a recruitment process for appointments to the Company’s Management Board. The decisions we made in this respect were a step towards the objectives defined in the Group’s strategy.

I am highly confident that, with the Supervisory Board’s support, the various objectives set by our shareholders, including the State Treasury as the shareholder responsible for the country’s energy security, were effectively reconciled in 2013.

The Supervisory Board will provide ongoing help and assistance to the Management Board in its efforts to improve the Group’s operational efficiency. Challenging as this may be, we will also support new initiatives to harness the potential of PGNiG’s alliances with other companies in which the State Treasury holds major shareholdings.

Yours faithfully,

Wojciech Chmielewski
Chairman of the PGNiG Supervisory Board