Financial capital is key to provide funding for the PGNiG Group’s day-to-day operations and deliver ambitious strategic goals in the future. The sources of funding comprise equity, debt and funds generated from business activities.

The overriding goal of the current strategy is to drive value growth and ensure financial stability for the PGNiG Group. We aspire to achieve cumulative EBITDAear­nings be­fo­re in­te­rest, ta­xes, de­pre­cia­tion and amor­ti­za­tion of PLN 33.7bn in the 2017–2022 time horizon. To deliver on that goal, the Group will need to continue its efforts to solidify its competitive position, while promoting growth of the gas market and further expanding the gas network in Poland.

Key metrics:

market capitalisation
total assets
debt ratio (liabilities to assets ratio) (%)
debt to equity ratio (financial leverage) (%)
available funding sources: lines of credit and bond programmes
net cash from operating activities
net cash from investing activities


consolidated operating profit (EBITear­nings be­fo­re in­te­rest and ta­xes)
EBITDAear­nings be­fo­re in­te­rest, ta­xes, de­pre­cia­tion and amor­ti­za­tion (operating profit before depreciation and amortisation)
net profit
earnings per share (PLN)
ROEre­turn on equ­ity, net pro­fit to equ­ity at end of pe­riod (%)
net debt / EBITDAear­nings be­fo­re in­te­rest, ta­xes, de­pre­cia­tion and amor­ti­za­tion
dividend per share (PLN)

Our approach to performance management:

  • We implement an ambitious capex programme that provides a foundation for long-term value growth, while ensuring Poland’s energy security
  • We pursue the ambitious capex programme while maintaining a healthy balance sheet structure. The current strategy aims to keep the net debt to EBITDAear­nings be­fo­re in­te­rest, ta­xes, de­pre­cia­tion and amor­ti­za­tion ratio below 2.0
  • The strategy provides for distribution of up to 50% of consolidated net profit as dividends, which is facilitated by active cash management

How does financial capital affect other types of capital?

Manufacturing capital

Property, plant and equipment are the largest component of the PGNiG Group’s assets. As at December 31st 2019, their value reached PLN 40,002m. Investments in production assets require the use of external funding raised in the financial market or internal funds held by the Group. In line with the PGNiG Group's Strategy adopted in March 2017, total CAPEX will exceed PLN 34bn in 2017-2022, while average annual capital expenditure in 2017−2022 will amount to ca. PLN 5.7bn:

  • of which almost a half (45%) will be spent on hydrocarbon exploration and production,
  • almost 30% of capital expenditure will be spent on developing the distribution business,
  • ca. 13% − on power and heat generation projects,
  • additionally, ca. 12% of CAPEX will be allocated to other, selected growth projects offering attractive returns, including in distribution, trading, power and heat generation.

In 2019, the PGNiG Group’s capital expenditure on property, plant and equipment was approximately PLN 6.6bn, having gone up by 36% year on year.

In addition to expenditure on new production assets, the maintenance and upgrades of existing plant and equipment is also a significant CAPEX item. In 2018, Polska Spółka Gazownictwa alone spent approximately PLN 676m to upgrade its network assets. The Generation segment bears significant costs of adapting its generation plant and equipment to BAT requirements.

In the mid- and long-term perspective, the goal of investments in the asset base is to enhance the Group’s efficiency and upscale its business. In line with the PGNiG Group's strategy in force for 2017-2022 with an outlook until 2026, the capex programme is expected to deliver cumulative 2017-2022 EBITDAear­nings be­fo­re in­te­rest, ta­xes, de­pre­cia­tion and amor­ti­za­tion of approximately PLN 33.7bn, driving long-term growth of the Group’s EBITDAear­nings be­fo­re in­te­rest, ta­xes, de­pre­cia­tion and amor­ti­za­tion in 2023-2026 to the annual average of around PLN 9.2bn.

Human capital

The PGNiG Group is one of the largest employers in Poland. Its workforce is comprised of highly-qualified professionals with extensive experience. As at December 31, 2018, there were 24,786 employees employed in the PGNiG Group.

The key internal document governing the remuneration policy at PGNiG is the 2009 Collective Bargaining Agreement. Under the adopted remuneration policy, base pay rates are based on job gradingand depend on the qualifications required for a given job. Other components of remuneration include awards and bonuses under the incentive scheme, St Barbara’s Day rewards, length-of-service awards, annual bonuses, and one-off retirement severance payments. 

Carrying out activities related to the extraction of natural gas and crude oil involves the risk of accidents at work. The PGNiG Group maintains an effective Quality, Environmental Protection and Occupational Health and Safety Management System in accordance with the best standards set out in international ISO standards, taking into account good industry practices. As a result, the number of accidents at work is constantly decreasing. In 2019, there were 160 accidents at work in the entire PGNiG Group (decrease by 18.8% yoy), in which 162 people were injured (a decrease by 22.5% yoy), of which 2 people died .

Natural capital

PGNiG Group is an industrial and commodity holding company. PGNiG’s business comprises exploration for and production of natural gas and crude oil. Through its key companies, PGNiG is also active in the area of import, storage, sale and distribution of gas and liquid fuels, as well as heat and electricity generation and distribution. As a result, all areas of our business rely heavily on access to natural capital which determines the Group’s financial performance. 

Exploration and Production is the Group’s first and principal operating segment from the perspective of the PGNiG Group strategy. To ensure uninterrupted supply of hydrocarbons to its retail and business clients, the Group invests in:

  • Exploration for new deposits and acquisition of production licences,
  • Field development.

The Group acquires and sells commodities from its own sources, but also purchases commodities on the market:

  • Natural gas (including LNG) purchased from third parties,
  • Coal purchased as fuel for the Generation segment.

Natural gas and crude oil prices determine the performance of individual segments to a large extent. To secure favourable gas prices in international transactions, the Group enters into short-, mid- and long-term contracts as a guarantee of uninterrupted supply of natural gas at market prices.

Environmental costs are an inherent part of the Group’s operations. In an effort to minimise its environmental footprint, in 2019 the Group earmarked capital investments for emission allowances of 4,563.4 thousand Mg (the amount to be additionally purchased by the PGNiG Group as the allocated emission allowance is 1,713.3 thousand Mg).

The Group also pays costs of certification, environmental software and mandatory environmental measurements.

Innovative capital

The growth activities model which has been deployed and followed at PGNIG SA is among the most extensive and up-to-date R&D&I systems currently in place at large Polish companies. The solutions developed under the model are designed to be commercialised as soon as practicable, leading to tangible financial gains over the short-, mid- and long-term horizon. 

In 2019, a total 121 innovation projects worth approximately PLN 400m were underway at the PGNiG Group (2018: 132 innovation projects worth approximately PLN 349m).
Social capital

The Group is deeply committed to building partnering relations with its social environment, local governments, suppliers and contractors, with the ultimate goal of pursing joint objectives. Acceptance for our investment plans in Poland hinges, inter alia, on positive relations with our stakeholders.

The Group supports CSR and local initiatives through:

  • Sponsorship activities,
  • Projects implemented through the PGNiG Foundation.
In 2019, the PGNiG Group companies and the PGNiG Foundation provided support to over 500 initiatives and events, compared with over 400 in 2018.

Data as at December 31st 2019  

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