SEGMENT PERFORMANCE

Revenue in the Distribution segment in 2017–2019 [PLN m]

 
2019
2018
2017*
Revenue from non-PGNiG Group customers
4,481
4,604
4,753
Inter-segment revenue
106
323
184
Total revenue, including
4,587
4,927
4,937
- distribution services
4,208
4,414
4,595
* Data reflecting the potential impact of IFRS 15.

Operating expenses in the Distribution segment in 2017–2019 [PLN m]

 
2019
2018
2017*
Total expenses
(3,607)
(3,469)
(3,369)
- depreciation and amortisation expense
(1,015)
(927)
(925)
- raw materials and consumables used
(246)
(436)
(365)
- employee benefits expense
(1,394)
(1,177)
(1,149)
- services
(250)
(259)
(193)
- transmission services
(655)
(635)
(641)
- recognition and reversal of impairment losses on property, plant and equipment and intangible assets
6
(2)
3
- work performed by the entity and capitalised
346
288
230
- other expenses, net
(399)
(321)
(329)
* Data restated to ensure comparability following adoption of the new IFRS 9 and IFRS 15 with effect from January 1st 2018.

 

Change in the Distribution segment’s EBITDAear­nings be­fo­re in­te­rest, ta­xes, de­pre­cia­tion and amor­ti­za­tion: 2018 vs 2019 [PLN m]

 

  • Stable gas distribution volumes of 11.53 bcm (-2% yoy), with average temperatures up 0.6°C yoy.
  • Revenue from distribution services down by PLN 206m (-5% yoy), mainly due to reduction in tariff prices effective from February 15th 2019 (approximately 5% down relative to former tariff).
  • Net income/cost of system balancing: PLN -30m in 2019, compared with PLN -57m in 2018.
  • Employee benefits expense up by PLN 217m (+18% yoy) due to higher salaries and wages and other remuneration components, i.e. bonuses and social security contributions.

 

Capital expenditure made in 2019 on PGNiG Group’s property, plant and equipment in the Distribution segment was PLN 2,278m, that is 114% of the planned amount. Compared with 2018, the capital expenditure increased by 26%.

Financial performance of subsidiaries

PSG Group’s financial performance
PSG Group (PLNm)
2019
2018
2017
Revenue
4,587
4,927
4,937
EBITDAear­nings be­fo­re in­te­rest, ta­xes, de­pre­cia­tion and amor­ti­za­tion
1,985
2,346
2,469
EBITear­nings be­fo­re in­te­rest and ta­xes
960
1,412
1,535
Net profit/loss
700
1,121
1,250
Total assets
17,642
15,190
14,834
Equity
11,750
12,123
11,937