SEGMENT PERFORMANCE

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

 
2019
2018
2017
Revenue from non-PGNiG Group customers
1,606
1,617
1,655
Inter-segment revenue
959
770
596
Total revenue, including
2,565
2,387
2,251
- heat
1,330
1,322
1,347
- electricity
997
802
644

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

 
2019
2018
2017*
Total expenses
(2,417)
(2,072)
(1,826)
- depreciation and amortisation expense
(707)
(472)
(418)
- raw materials and consumables used
(1,120)
(1,034)
(857)
- employee benefits expense
(219)
(205)
(199)
- services
(195)
(191)
(179)
- recognition and reversal of impairment losses on property, plant and equipment and intangible assets
-
16
3
- work performed by the entity and capitalised
-
1
2
- other expenses, net
(176)
(186)
(178)
* Data restated to ensure comparability following adoption of the new IFRS 9 and IFRS 15 with effect from January 1st 2018.

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

  • Revenue from sale of electricity generated from the segment’s own sources up +25% yoy, to PLN 946m, with market prices rising and sales volumes down 3% yoy.
  • Stable revenue from sale of heat (+1% yoy), at PLN 1.3bn, with higher average temperatures, lower heat sales volumes (-3% yoy) and an average increase of ca. 7.3% (as of September 1st 2019) in tariff prices for sale of heat at PGNiG TERMIKA relative to the previous tariff.
  • Cost of coal up 8% yoy, to PLN 873m in 2019, and cost of biomass up PLN 16m yoy.
  • Depreciation and amortisation expense up by PLN -235m yoy, mainly due to higher costs of redemption of CO2 emission allowances.
  • Sales volumes in 2019:
    • Sales of heat to non-PGNiG Group customers: 39.27 PJ.
    • Electricity from own sources: 3.95 TWh.

 

Capital expenditure made in 2019 on PGNiG Group’s property, plant and equipment in the Generation segment was PLN 1,628m (including PLN 493m attributable to CO2), or 88% of the planned amount. Compared with 2018, the capital expenditure increased by 169%.

Financial performance of subsidiaries
PGNiG TERMIKA’s financial performance
PGNiG TERMIKA (PLNm)
2019
2018
2017
Revenue
2,176
2,016
1,925
EBITDAear­nings be­fo­re in­te­rest, ta­xes, de­pre­cia­tion and amor­ti­za­tion
777
687
744
EBITear­nings be­fo­re in­te­rest and ta­xes
147
286
381
Net profit/loss
(89)*
208
228
Total assets
6,876
5,949
5,718
Equity
3,133
3,415
3,418
 *Profit/(loss) from equity-accounted investees, including PGG - PLN -239 m