Out of gas

Bogusław Marzec's resignation is an embarrassment for Law and Justice (PiS), who appointed him in April as part of a campaign to boost management standards.

 "This is not good news for investors or the company, but nothing could be done about this situation," Marzec told a news conference, where he maintained his innocence. Polish media have reported that the secret services may have unearthed financial irregularities by Marzec before he became PGNiG chief.

Shares in PGNiG were hit hard, and dipped to zł.3.31 at the end of the week. Uncertainty over the future of the gas monopoly, and run-ins with the regulator have taken their toll on its valuation.

"Sentiment surrounding the company is increasingly negative, and the government appears to have no strategy for the company - we still don't know what projects will be carried out to diversify gas supplies, their costs and if they will be worthwhile for PGNiG," said Flawiusz Pawluk, an energy analyst at Bank Zachodni-WBK brokers.

Prime Minister Kazimierz Marcinkiewicz attempted to limit the damage caused by Marzec's departure by launching a new initiative to evaluate potential candidates for senior posts in state firms. (Reuters)