PGNiG's first quarter results fuel lukewarm reaction

The company posted a net profit of zł.620 million, which marks a growth of 14% as compared to the same period in 2005, while the analysts expected the profit to total approximately zł.593 million. The revenues increased by almost 35% and amounted to zł.5.1 billion. However, the operating profit decreased by 24.5% to zł.792 million. "These are good results," commented Andrzej Pasławski, an analyst with BDM PKO BP, and pointed to the fact that at the beginning of the year the company sold much more domestic gas, the sale of which is more profitable as compared to the Russian gas that PGNiG sells below cost. "I assess PGNiG results as being simply in accordance with expectations," stated Michał Mierzwa from DI BRE. "The sales proved to be slightly better than the estimates due to severe winter and large demand for gas." (Puls Biznesu, pp. 1, 5) E.B.