PGNiG initially had PLN 0.58 billion net profit, PLN 1.66 billion EBITDA in Q2 2021

The consolidated operating profit amounted to PLN 0.84 billion compared to PLN 6.45 billion the year before, as stated in the communication.

Consolidated sales revenue reached PLN 10.43 billion compared to PLN 7.28 billion the year before.

"The estimated financial results of the PGNiG Group in the second quarter of 2021 were influenced by:

1. In the Search and Extraction segment:

higher year/year of product price quotations, including Brent's quarterly oil prices in USD/bbl by 118% and market gas prices on the next day on the TGE, higher by 267% compared to the second quarter of 2020;
the dissolution of asset-renewal write-downs in the segment of approximately PLN +296 million;
decrease in volume of oil extraction by 37,000 tonnes (-22% y/y) in Norway in relation to the second quarter of 2020

2. In the Turnover and Storage segment:

a significant increase in the gas price on TGE, affecting the price level of the transfer of gas from domestic extraction to the Turnover and Storage segment;
higher by 5.6% than the previous tariff, the average price for gas fuel in the retail tariff applicable from 1 May 2021;
the impact of the write-down on the stock in the amount of PLN -8 million, with the dissolution of the write-down on PLN +108 million in the second quarter of 2020;
the result on the implementation of hedge instruments covered by the collateral accounting: (1) included in sales revenue of PLN -185 million (in the second quarter of 2020: PLN +171 million), (2) included in the gas reserve as a reduction in the cost of gaining PLN+67 million (in the second quarter of 2020: PLN -68 million).

3. In the Distribution segment:

higher by 3.6%, compared to the previous tariff, for the gas distribution service in force from 1 February 2021;
lower average temperature in the second quarter of 2021 by 0,31°C y/y;
the balance of revenues and costs for balancing the system: -23 million PLN in the second quarter of 2021 compared to +2 million PLN the year before.

4. In the Manufacturing segment:

higher heat sales revenue of 14% R/R at lower average temperature in the second quarter of 2021 and lower heat production volumes;
higher revenues from the sale of electricity from generation by 11% y/y at a lower volume of sales" - reads the Communication.

Throughout the first half of 2021, the consolidated net result was – according to preliminary estimates – PLN 2.32 billion compared to PLN 5.22 billion in profit the year before. The EBITDA result reached respectively: PLN 5.06 billion versus PLN 9.35 billion the year before, and the EBITDA – respectively: PLN 3.28 billion versus PLN 7.66 billion.

The figures presented are estimated and may change. These results will be reviewed by the statutory auditor. The publication of the interim report for the first half of 2021 will take place on 2 September 2021, stressed.

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