PGNiG on the Stock Exchange
2011 was a year marked by difficult macroeconomic conditions. Many Polish and global stock-exchange indices suffered a decline. Therefore, we are all the more satisfied with the performance of the PGNiG share prices, which advanced by more than 14%.
Our Position on the Warsaw Stock Exchange
Since PGNiG shares were first listed on the Warsaw Stock Exchange on September 23rd 2005, they have been among the most recognisable and credible listed securities. PGNiG shares have been included in the WIG20 index since December 15th 2005, and our stock is also included in the MSCI Emerging Markets Index, a global index of emerging market companies created by Morgan Stanley Capital International.
PGNiG was, for the fourth consecutive time, listed in the elite group of companies included in the RESPECT Index of socially responsible and sustainable businesses, the first such index in Central and Eastern Europe. Our stock is also a part of the WIG-Paliwa index of fuel sector companies, and of the WIG-div index of listed companies paying dividends on a regular basis.
| Shareholder | Number of shares/votes attached to the shares as at Dec 31 2011 |
Percentage of share capital/total vote at the GM as at Dec 31 2011 |
Number of shares/votes attached to the shares as at Dec 31 2010 |
Percentage of share capital/total vote at the GM as at Dec 31 2010 |
| State Treasury | 4,272,063,451 | 72.41% | 4,273,650,532 | 72.43% |
| Other shareholders | 1,627,936,549 | 27.59% | 1,626,349,468 | 27.56% |
| Total | 5,900,000,000 | 100.00% | 5,900,000,000 | 100.00% |
Shareholder Structure
As at December 31st 2011, PGNiG's share capital amounted to PLN 5,900,000,000 and was divided into 5,900,000,000 shares with a par value of PLN 1 per share. The shares of all series, that is Series A, A1 and B, were ordinary bearer shares and each of them conferred the right to one vote at the General Meeting. The Company's Articles of Association do not provide for any restrictions on the exercise of voting rights attached to Company shares.
Investor Relations
As a company listed on the WSE, PGNiG is required to fairly and reliably report on its operations and important corporate events in the PGNiG Group by preparing and releasing regular reports which are made available on equal terms to each of the Company’s existing and prospective shareholders. Besides interim reports published on a quarterly basis, these also include current reports covering all aspects of the Company's activities which could have a material bearing on the share price. The number of such reports increased nearly twofold, from 98 in 2010 to 185 in 2011. Since 2010, the Company has also been publishing corporate governance reports.
The Investor Relations function is, however, not limited to obligatory activities expressly required by law. It also encompasses various other activities being undertaken by the Company to meet the high expectations of all market participants, which as a consequence, builds the Company's reputation and the trust of investors, thereby reducing our funding costs over the long term. These include participation in road shows and investor conferences in Poland and abroad – in 2011, we participated in meetings held in the United Kingdom, Denmark and Austria, and took part in such conferences as ‘Chemist's Day – BZWBK’ and ‘ING Annual EMEA Forum’ in Warsaw. A new event was the road show promoting the new PGNiG Eurobond Programme, as part of which our representatives held meetings with investors in Paris, London, Amsterdam, Frankfurt, Munich and Vienna.
Investor Relations also involve frequent meetings with portfolio managers in Warsaw and on-going communication with equity analysts covering PGNiG shares. Time-constrained investors expect a clear and concise approximation of the complex factors having a bearing on PGNIG’s valuation. In 2011, the most popular topics of discussion among investors included shale gas plans, acquisition of energy assets, and new hydrocarbon production projects, such as the Skarv fields or LMG.
Our website features a dedicated Investor Relations section, where every capital market participant may find the most important updates on the Company, market forecasts of the Group's performance and the most recent stock recommendations, sourced from research reports by brokerage houses covering PGNiG.
Price Performance of PGNiG Stock
Throughout the year, PGNiG shares traded within the PLN 3.45 – 4.64 band. The strongest increases in share price were driven by the Q1 results, which outperformed the analysts' consensus estimations, and also followed the approval of the gas fuel tariff increase in June 2011. These were shortly followed by a sharp decline of the share price, caused by the macroeconomic environment and the downturn seen on the global markets in July and August.
Under such difficult conditions, further exacerbated by crude price increases and the weakening of the Polish złoty against the US dollar, the rate of return on PGNiG shares turned out to be one of the highest among WIG20 companies. In 2011, the rate of return on PGNiG shares was 14.3%, and including dividend income (PLN 0.12 per share) of 17.6%. The WIG index fell by nearly 21% in the same period. The rate of return on the investment in PGNiG shares for investors who bought the shares at the issue price in 2005 had reached 36.9% by the end of 2011.