PGNiG chiefs optimistic about group's return to profit

Polish natural gas monopoly PGNiG hopes to return to profit this year, largely thanks to cost-cutting and restructuring, the group's deputy chief executive Jerzy Staniewski said yesterday. State-owned PGNiG - in which a 30% stake is due to be floated on the Warsaw bourse in late 2004 - also said it planned to increase gas output by 50% and crude oil production by nearly 80% by 2006."Our restructuring program is bringing positive effects, with operating costs down by some 9% after the first 10 months of this year," Staniewski told reporters at an industry seminar near Warsaw, adding, "If there are no significant changes in the exchange rate...we should end the year in the black." In 2001 the heavily indebted firm suffered a zl. 162 million ($40.71 million) net loss. PGNiG's bottom line was hit by a 9% weakening of the zloty against the euro in the January-October period, which increased the firm's foreign debt-servicing costs. Late last year the group issued euro 800 million of eurobonds on international markets to finance its ambitious gas supply diversification projects and group restructuring. At present, PGNiG's debt, most of which is euro-denominated, stands at around zl. 6 billion. (Reuters) A.C.