PGNiG sees revenues grow

The net profit of bourse-listed PGNiG, Poland's largest gas distributor, reached zł.779 million in Q1, down from zł.788 million in Q1 2007. The company saw zł.5.33 billion in revenues, an improvement on last year's zł.5.05 billion.

PGNiG's results were driven by a 71-percent growth in the sales revenues of crude oil and gas condensate, which were the most profitable areas for the company's activity. These sales revenues reached zł.238 million, compared with last year's figure of zł.138 million.

Gas sales grew by zł.361 million, an eight-percent jump on Q1 2007. According to the company, the increase was driven by a colder winter, since gas is predominately used for heating. The purchase of gas by industrial institutions also increased, this time by six percent in Q1 2007.

The gas giant's operational costs grew by five percent, from zł.4.1 million to zł.4.3 million, due to an increased dependence on imported gas and higher import prices.

PGNiG has some key investments planned for this year, including the construction of underground gas storage, which will cost an estimated zł.275 million. Other investment projects include increasing exploitation, which will cost around zł.570 million, and overseas gas exploration work, which comes with a zł.63-million price tag.