Polskie Górnictwo Naftowe i Gazownictwo S.A.

INTERIM REPORT

for the third quarter

ended September 30th 2017

prepared in accordance with International Financial Reporting Standards

as endorsed by the European Union

POLISH FINANCIAL SUPERVISION AUTHORITY Consolidated Quarterly Report QSr 3 / 2017

quarter / year

(pursuant to Par. 82.2 and Par. 83.1 of the Regulation of the Minister of Finance of February 19th 2009 - Dz. U. of 2014, item 133, as amended)

for issuers of securities in the manufacturing, construction, trade and services sectors

for the third quarter of the 2017 financial year, covering the period from January 1st to September 30th 2017, containing interim condensed consolidated financial statements prepared in accordance with International Financial Reporting Standards in the Polish zloty (PLN), and interim condensed separate financial statements prepared in accordance with International Financial Reporting Standards in the Polish zloty (PLN).

November 13th 2017

(filing date)

PO LSKI E GÓ RNI CTWO N AF TO WE i G AZOW NICTWO SPÓ ŁK A AK CY JN A

(Full name of the issuer)

PGNIG

(Abbreviated name of the issuer)

Fuels (pal)

(industry according to WSE classification)

01-224

(postal code)

Warsaw

(city)

Marcina Kasprzaka 25

(street) (number)

+48 22 589 45 55

(phone)

+48 22 691 82 73

(fax)

pr@pgnig.pl

(e-mail)

www.pgnig.pl

(www)

525−000−80−28

(NIP)

012216736

(REGON)

Financial highlights

Key data from the interim condensed consolidated

financial statements PLN million EUR million

9 months ended

Sep 30 2017

9 months ended

Sep 30 2016

9 months ended

Sep 30 2017

9 months ended

Sep 30 2016

Revenue

24,892

23,050

5,848

5,276

Operating profit before depreciation and amortisation (EBITDA)

5,256

4,269

1,235

977

Operating profit (EBIT)

3,260

2,313

766

529

Profit before tax

3,312

2,240

778

513

Net profit attributable to owners of the parent

2,465

1,629

579

373

Net profit

2,465

1,628

579

373

Total comprehensive income attributable to owners of the parent

2,337

1,988

549

455

Total comprehensive income

2,337

1,987

549

455

Net cash from operating activities

3,672

4,164

863

953

Net cash from investing activities

(2,979)

(2,880)

(700)

(659)

Net cash from financing activities

(4,993)

(1,949)

(1,173)

(446)

Net cash flows

(4,300)

(665)

(1,010)

(152)

Basic and diluted earnings per share (PLN)

0.43

0.28

0.10

0.06

As at Sep 30 2017

As at Dec 31 2016

As at Sep 30 2017

As at Dec 31 2016

Total assets

45,883

49,672

10,648

11,228

Total liabilities

12,686

17,656

2,944

3,991

Total non-current liabilities

7,141

7,303

1,657

1,651

Total current liabilities

5,545

10,353

1,287

2,340

Total equity

33,197

32,016

7,704

7,237

Share capital

5,778

5,778

1,341

1,306

Weighted average number of ordinary shares (million)

5,778

5,867

5,778

5,867

Book value per share and diluted book value per share (PLN and EUR)

5.75

5.46

1.33

1.23

Dividend per share declared or paid (PLN and EUR)

0.20

0.18

0.05

0.04

Key data from the interim condensed

separate financial statements PLN million EURmillion

9 months ended

Sep 30 2017

9 months ended

Sep 30 2016

9 months ended

Sep 30 2017

9 months ended

Sep 30 2016

Net revenue

12,981

11,996

3,050

2,746

Profit before tax

2,225

2,284

523

523

Net profit

1,983

2,127

466

487

Total comprehensive income

1,902

2,487

447

569

Net cash from operating activities

(214)

699

(50)

160

Net cash from investing activities

23

110

5

25

Net cash from financing activities

(4,730)

(1,990)

(1,111)

(456)

Net cash flows

(4,921)

(1,181)

(1,156)

(270)

Earnings and diluted earnings per share attributable to holders of ordinary shares (PLN and EUR)

0.34

0.36

0.08

0.08

As at Sep 30 2017

As at Dec 31 2016

As at Sep 30 2017

As at Dec 31 2016

Total assets

32,682

35,769

7,584

8,085

Total liabilities

6,708

10,541

1,557

2,383

Total non-current liabilities

2,216

2,144

514

485

Total current liabilities

4,492

8,397

1,042

1,898

Equity

25,974

25,228

6,028

5,703

Share capital and share premium

7,518

7,518

1,745

1,699

Weighted average number of shares (million) in the period

5,778

5,867

5,778

5,867

Book value per share and diluted book value per share (PLN and EUR)

4.50

4.30

1.04

0.97

Dividend per share declared or paid (PLN/EUR)

0.20

0.18

0.05

0.04

Average EUR/PLN exchange rates quoted by the NBP Sep 30 2017 Sep 30 2016 Dec 31 2016

Average exchange rate in period

4.2566

4.3688 4.3757

Exchange rate at end of period

4.3091

4.3120 4.4240

Items of the statement of profit or loss, statement of comprehensive income and statement of cash flows were translated at the EUR/PLN exchange rate computed as the arithmetic mean of mid rates quoted by the National Bank of Poland (NBP) for the last day of each calendar month in the reporting period.

Items of the statement of financial position were translated at the mid rate for EUR/PLN quoted by the NBP at the end of the reporting period.

TABLE OF CONTENTS

Interim condensed consolidated financial statements 5

  1. General information 9

  2. KEY INFORMATION ABOUT THE GROUP 9

  3. BASIS FOR PREPARATION OF THE FINANCIAL STATEMENTS INCLUDED IN THIS REPORT 9

  4. APPLIED ACCOUNTING POLICIES 10

  5. EFFECT OF NEW STANDARDS ON THE FINANCIAL STATEMENTS OF THE PGNIG GROUP 10

  6. PRESENTATION CHANGES IN THE FINANCIAL STATEMENTS 11

  7. The Group and its reporting segments 14

  8. CHANGES IN THE GROUP STRUCTURE 16

  9. EQUITY-ACCOUNTED INVESTEES 16

  10. KEY DATA ON THE REPORTING SEGMENTS 17

  11. SEGMENTS' FINANCIAL RESULTS 18

  12. FACTORS AND EVENTS WHICH MAY AFFECT FUTURE RESULTS OF THE PGNIG GROUP 19

  13. Notes to the interim condensed consolidated financial statements 20

  14. DEFERRED TAX 20

  15. IMPAIRMENT LOSSES/WRITE-DOWNS 20

  16. PROVISIONS 21

  17. REVENUE 22

  18. OPERATING EXPENSES 22

  19. OTHER INCOME AND EXPENSES 23

  20. NET FINANCE INCOME/(COSTS) 23

  21. INCOME TAX 23

  22. PROPERTY, PLANT AND EQUIPMENT 24

  23. DERIVATIVE FINANCIAL INSTRUMENTS 25

  24. CONTINGENT ASSETS AND LIABILITIES 28

  25. Supplementary information to the report 29

  26. KEY EVENTS RELATED TO THE ISSUER IN THE REPORTING PERIOD 29

  27. SHARES HELD BY MANAGEMENT AND SUPERVISORY PERSONNEL 32

  28. DIVIDEND PAID (DECLARED) 32

  29. ISSUE, REDEMPTION, AND REPAYMENT OF DEBT SECURITIES 32

  30. SEASONALITY 33

  31. MATERIAL COURT, ARBITRATION AND ADMINISTRATIVE PROCEEDINGS 33

  32. SETTLEMENTS FROM COURT PROCEEDINGS 35

  33. CHANGES IN THE ECONOMIC ENVIRONMENT AND TRADING CONDITIONS WITH A MATERIAL BEARING ON FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES 35

  34. CREDIT DEFAULT OR BREACH OF MATERIAL CREDIT COVENANTS WITH RESPECT TO WHICH NO REMEDIAL ACTION WAS TAKEN BEFORE THE END OF THE REPORTING PERIOD 35

  35. RELATED-PARTY TRANSACTIONS 35

  36. MANAGEMENT BOARD'S POSITION ON FEASIBILITY OF MEETING PUBLISHED FORECASTS FOR THE YEAR 35

  37. EVENTS SUBSEQUENT TO THE REPORTING DATE 35

  38. OTHER INFORMATION MATERIAL TO THE ASSESSMENT OF HUMAN RESOURCES, ASSETS, FINANCIAL CONDITION AND RESULTS, AS WELL AS TO THE ASSESSMENT OF ABILITY TO FULFIL OBLIGATIONS 36

  39. Quarterly financial data of PGNiG S.A. 37

  40. FINANCIAL STATEMENTS 37

  41. NOTES TO THE INTERIM CONDENSED SEPARATE FINANCIAL STATEMENTS 42

  42. Page 4 of 46

PGNiG - Polish Oil & Gas Company published this content on 13 November 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 13 November 2017 05:43:03 UTC.

Original documenthttp://en.pgnig.pl/documents/1910852/2220757/Raport_Okresowy_GKPGNiG_3Q2017_EN.pdf/bf6928fd-c624-42a2-9f9e-587eb73734c0

Public permalinkhttp://www.publicnow.com/view/28EFEC4CFE2288EF4C78A7B2F399B556E4DCAC76