SEGMENT PERFORMANCE

Revenue in the Exploration and Production segment in 2017–2019
2019
2018
2017
Revenue from non-PGNiG Group customers
3,351
3,795
3,092
Inter-segment revenue
2,471
3,876
3,026
Total revenue, including
5,822
7,671
6,119
- high-methane and nitrogen-rich gas
3,086
4,536
3,604
- crude oil, condensate and NGL
2,112
2,554
1,862
- geophysical, geological and drilling services
277
275
369

 

Operating expenses in the Exploration and Production segment in 2017–2019
2019
2018
2017*
Total expenses
(3,518)
 (3,714)
 (3,313)
- depreciation and amortisation expense
(1,056)
(1,063)
(1,060)
- raw materials and consumables used
(356)
(380)
(363)
- employee benefits expense
(890)
(867)
(795)
- services
(590)
(667)
(639)
- transmission services
(223)
(261)
(197)
- cost of dry wells and seismic surveys written-off
(258)
(687)
(400)
- impairment of non-current assets
(354)
203
(79)
- work performed by the entity and capitalised
488
506
481
- other expenses, net
(279)
(498)
(261)

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

 

  • Revenue from sale of crude oil and condensate down PLN -442m (-17%) yoy, on lower sales volumes in Poland (-6% yoy) and Norway (-26% yoy), and a -10% decrease in the average oil price in USD (USD 64/boe).
  • Oil production volumes in Norway down -16% yoy, to 440,000 tonnes.
  • The segment’s revenue from sale of gas down PLN -1,450m (-32%) yoy, driven by a -35% decline in gas prices on the PPX Day-Ahead Market and a -3% yoy decrease in sales volumes.
  • Cost of dry wells and seismic surveys written off: PLN -258m in 2019 vs PLN -687m in 2018.
  • Recognition of impairment losses on non-current assets: PLN -354m in 2019 vs reversal of PLN +203m in 2018,
  • Overlift/underlift position in Norway in 2019 – effect on profit or loss for 2019: PLN -12m; overlift / underlift position reported in 2018 – effect of valuation on profit or loss for 2018: PLN -110m.
Financial performance of subsidiaries
PGNiG UN’s financial performance 
PGNiG UN (NOKm)
2019
2018
2017
Revenue
2,358
3,569
2,463
EBITDAear­nings be­fo­re in­te­rest, ta­xes, de­pre­cia­tion and amor­ti­za­tion
1,515
2,247
1,779
EBITear­nings be­fo­re in­te­rest and ta­xes
721
1,343
872
Net profit/loss
143
157
21
Total assets
13,244
10,145
8,394
Equity
1,894
751
594