for the PGNiG Group 2015 was a time of challenges, when it had to overcome the adversities brought on by unfavourable price trends on the international markets of energy commodities. In spite of the challenging environment, the Group was successful in accomplishing key projects which will serve as the foundation for delivery of its updated Strategy in the coming years.
Over the year, many steps were taken to increase the Group’s documented gas reserves. In terms of international acquisition opportunities, the Group analysed a number of projects at various stages of development across the globe. This allowed it to accurately define its expectations towards prospective investments, including reserves at an advanced stage of development (producing reserves) and companies holding interests in such reserves. 2015 was marked by efforts to sustain the value of the Group’s sales, by way of a broad range of dedicated discount offers mainly for business customers. A higher gas distribution volume was achieved on a growth in the number of new connections to the network and new customers, with the average distribution charge remaining at the level assumed in the Strategy. With potential acquisitions in mind, the Group also assessed the potential and conducted an in-depth analysis of the Polish heat market.
Particularly notable was the successful delivery of cost savings assumed in the Strategy of PLN 602m, up 14% on the target PLN 527m. Reduced costs driven by improved organisational and process efficiency coupled with the Group’s robust financial standing and low debt level will serve as a springboard for its continued growth. To this end, the updated Strategy includes new initiatives designed to support the Group’s value growth through diversification projects, development of international LNG trading and expansion of the sales operations of PGNiG Supply and Trading.
The consistent pursuit of initiatives outlined in the Strategy will deliver positive results for all of the PGNiG Group’s stakeholders, and hence the Supervisory Board will support the Management Board in achieving these ambitious goals.
Yours faithfully,
Bartłomiej Nowak,
Chairman of the Supervisory Board of PGNiG
