E&P revenues quadruple at PGNiG in Q2
Poland's PGNiG saw upstream E&P revenue soar by 313% yr/yr in the second quarter of 2022, generating 8.3bn zloty ($1.9bn) on the back of higher realised oil and gas prices.
PGNiG, which is set to be absorbed by its Polish peer PKN Orlen, said August 18 that core EBITDA had also risen by 485% on the year ago period, to 8.2bn zloty.
Second quarter revenues at PGNiG's downstream distribution arm dipped slightly, falling by 5% on the year to 1.1bn zloty, as higher temperatures, up 0.9 celsius yr/yr, meant gas distribution volumes fell 18% yr/yr to 2.3bn m3.
In an earnings call later on August 18, PGNiG updated investors on the fourth quarter launch of the Baltic Pipe interconnector to Norway. The 10bn m3 pipeline which also passes through Denmark is due to commence its initial phase in October, ramping up toward full capacity by the turn of the year. PGNiG told investors it has so far contracted 800mn m3 for Q4 delivery via Baltic Pipe, Reuters said.
Poland's 20bn m3/yr long-term supply contract with Gazprom would have run until December 31, but it was abruptly cancelled in April after Warsaw refused to comply with the rouble-only payments policy. PGNiG said the share of gas imports from across Poland's eastern border fell to 37% in the quarter from 58% last year, while LNG imports rose from 25% to 34% yr/yr. As well as Baltic Pipe, Poland can tap LNG from its domestic LNG terminal in Swinoujscie as well as regasified LNG from Lithuania via a newly-launched interconnector pipeline.