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Edited Transcript of PGN.WA earnings conference call or presentation 21-May-19 7:00am GMT

Q1 2019 Polskie Gornictwo Naftowe i Gazownictwo SA Earnings Call

Warsaw May 28, 2019 (Thomson StreetEvents) -- Edited Transcript of Polskie Gornictwo Naftowe i Gazownictwo SA earnings conference call or presentation Tuesday, May 21, 2019 at 7:00:00am GMT

TEXT version of Transcript

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Corporate Participants

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* Marcin Piechota

Polskie Górnictwo Naftowe i Gazownictwo S.A. - Head of the IR Division

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Conference Call Participants

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* Michal Kozak

Trigon Dom Maklerski S.A., Research Division - Research Analyst

* Piotr Dzieciolowski

Citigroup Inc, Research Division - VP

* Robert Maj

IPOPEMA Securities S.A., Research Division - Analyst

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Presentation

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Operator [1]

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Ladies and gentlemen, welcome to PGNiG Group Financial Results for the First Quarter 2019.

I will now hand over to you, Marcin Piechota, IR Manager. Sir, please go ahead.

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Marcin Piechota, Polskie Górnictwo Naftowe i Gazownictwo S.A. - Head of the IR Division [2]

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Ladies and gentlemen, welcome to the conference call to discuss the financial results of the PGNiG Group for the first quarter of 2019. The meeting is hosted by Mr. Piotr Wozniak, Chief Executive Officer; and Mr. Michal Pietrzyk, Vice President for Finance. They are accompanied by our Investor Relations and performance teams.

Let us begin with a presentation of the financial results, and then we'll proceed to our customary Q&A session.

In the first quarter, the U.S. dollar appreciated by 39 grosz year-on-year to PLN 3.79 while the euro strengthened by 12 grosz to PLN 4.30. The average oil price in the quarter fell 6% year-on-year to nearly $63 per barrel. However, the 9-month average price of oil rose 33% or more than $18 relative to the first quarter of 2018. Translated into the Polish zloty, the quarterly oil price grew 5% and the 9-month average rose by as much as 48% year-on-year. The group solid results were achieved in the environment with the average price of gas under contracts traded on the Polish Power Exchange at about PLN 105. That is about 18% more than in the first quarter of 2018. However, the day-ahead market average prices declined by over 12% year-on-year to PLN 90 during the quarter.

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Unidentified Company Representative, [3]

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The PGNiG Group's aggregate revenue exceeded PLN 14.3 billion, which means an increase of PLN 1.1 billion or 8% over the first quarter of 2019. The revenue from sales of gas went up 18% year-on-year with the sales volumes remaining stable, up 9.9 billion cubic meters.

Operating expenses excluding depreciation and amortization amounted to PLN 12.2 billion and were higher by 15%. In the first quarter, the group generated EBITDA of nearly PLN 2.2 billion, a decrease of 19% year-on-year.

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Marcin Piechota, Polskie Górnictwo Naftowe i Gazownictwo S.A. - Head of the IR Division [4]

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Let us now move on to discuss the performance of each segment. EBITDA generated in upstream was PLN 1.3 billion, representing a decrease of 6% year-on-year caused by lower commodity prices. Revenue from sale of crude oil and condensate dropped 31%, owing mainly to a 17% year-on-year decrease in production in Norway. Because of lower prices, at which gas produced in Poland was transferred from the upstream to trade segment, the revenue from sale of gas also fell by 5%.

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Unidentified Company Representative, [5]

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In the Trade and Storage segment, revenue from sales of gas around 15% year-on-year, while sales volumes remained stable. Net gain on settlement of hedging instruments designed for hedge accounting amounted to PLN 179 million and was significantly higher than the result achieved in the first quarter of 2018, which was a loss of minus PLN 169 million. The first quarter also saw recognition of the provision for the energy efficiency buyout price of PLN 77 million and reversal of gas inventory write-downs of PLN 37 million.

Higher hydrocarbon prices brought up a significant rise in the segment's operating expenses, excluding depreciation and amortization. In the first quarter, they reached PLN 11.8 billion and were 17% higher than a year earlier. Thus, the segment EBITDA was minus PLN 71 million or PLN 250 million less than in the corresponding period of the previous year.

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Marcin Piechota, Polskie Górnictwo Naftowe i Gazownictwo S.A. - Head of the IR Division [6]

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Revenue generated in the Distribution segment fell 11% year-on-year to PLN 1.4 billion in the first quarter of 2019. The year-on-year decrease was caused mainly by temperatures, which were lower by almost 3 degrees Celsius and the reduced distribution tariff effective from February 15, 2019. Thus, revenue from distribution services went down by more than PLN 160 million year-on-year. The net income/cost of system balancing was PLN 46 million, higher than in the first quarter of 2018, chiefly due to lower prices of fuel gas.

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Unidentified Company Representative, [7]

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In the Generation segment, revenue from sales of electricity grew 38% year-on-year to more than PLN 360 million, which marked the price of electricity rising in sales volumes at a stable level. Due to high temperatures in the quarter and the resulting decrease in heat sales volumes of 11% year-on-year, revenue from sales of heat declined 9% on the first quarter of 2018 (sic) [2019]. The 11% increase in depreciation and amortization was caused primarily by higher cost of redemption of CO2 emission allowances and the launch of the Zofiówka CHP plant in the fourth quarter of 2018. The segment EBITDA exceeded PLN 400 million and was stable year-on-year.

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Marcin Piechota, Polskie Górnictwo Naftowe i Gazownictwo S.A. - Head of the IR Division [8]

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Thank you for your attention. We will be happy to take your questions now.

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Questions and Answers

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Operator [1]

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(Operator Instructions) Our first question is from Mr. Piotr from Citibank (sic) [Citigroup].

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Piotr Dzieciolowski, Citigroup Inc, Research Division - VP [2]

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I have a question regarding the outlook for the remaining part of the year. We see a historically wide spread between the spot market, gas prices and oil-linked gas contracts. So can you give a range of -- and how -- provide any guidance on what could be your trading result in the following part of the year? And so that's the first question.

And second, could you please tell us a little bit about heat business? When should we expect the increase of a tariff for this and the pass-through of the higher coal and CO2 costs into the top line and how sensitive is this business to the rising CO2 prices?

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Marcin Piechota, Polskie Górnictwo Naftowe i Gazownictwo S.A. - Head of the IR Division [3]

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Well, taking into account the recent volatility on the market, we cannot forecast what will happen in the forthcoming months. So we'd like to stay cautious and conservative regarding the forecast and the results for us to currently comment on...

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Unidentified Company Representative, [4]

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(foreign language)

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Unidentified Company Representative, [5]

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Yes. Well, I just want to remind you this is not a forecasting conference, but we'll provide comments on the first quarter only. That's first comment. The second is certainly satisfied with the low temperatures in April, and there will certainly be a good impact results for the second quarter. But that's all we can say. No forecasting here. So sorry for that. Thank you.

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Operator [6]

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(Operator Instructions) Our next question -- we have a follow-up question from Mr. Piotr from Citibank.

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Piotr Dzieciolowski, Citigroup Inc, Research Division - VP [7]

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And can you please answer to my second question on the heat business? Because -- when should we expect the tariff increase and how sensitive is this business to CO2 with -- or this entire CO2 price increase being passed through into the top line and the sensitivity on the negative side to the higher CO2 on heat business.

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Marcin Piechota, Polskie Górnictwo Naftowe i Gazownictwo S.A. - Head of the IR Division [8]

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Regarding the tariff for the heating business, the tariff is revised in practice each year. So we have to expect that it may change the (inaudible) of the year. In terms of CO2 emissions and the prices of CO2, please take into account that the CO2 emissions prices are reflected in this price of electricity traded on the market. So that's partly included into the prices on the market.

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Piotr Dzieciolowski, Citigroup Inc, Research Division - VP [9]

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The reason I'm asking is that the other companies within the sector actually claimed they can only -- the tariff is passing through only half of the CO2 price increase, as the benchmark is based on the gas cogeneration assets. Is this true or it's different for you -- for your case?

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Marcin Piechota, Polskie Górnictwo Naftowe i Gazownictwo S.A. - Head of the IR Division [10]

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We'll have to wait for the decision for -- from the regulatory office regarding the heating prices in the tariff. So we cannot comment on that right now.

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Operator [11]

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(Operator Instructions) Our next question is from Robert Maj from IPOPEMA Securities.

Our next question is from Michal Kozak from Trigon.

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Michal Kozak, Trigon Dom Maklerski S.A., Research Division - Research Analyst [12]

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I have a question. Could you tell us a little bit more about the possibility of raising capital, PLN 10 billion credit? Should we expect huge upstream transaction in the following 2 weeks?

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Unidentified Company Representative, [13]

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So the PLN 10 billion credit line will be replacing the existing bond programs. Actually, we have the 2 bond programs totaling at amount of PLN 8 billion. So PLN 10 billion will be actually extending existing credit lines at about PLN 2 billion. And the tenor will be extended up to 5 years, as it was released yesterday.

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Marcin Piechota, Polskie Górnictwo Naftowe i Gazownictwo S.A. - Head of the IR Division [14]

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This credit line will be devoted to our CapEx spending and the normal operation financial -- financing of the operation of whole PGNiG Group.

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Unidentified Company Representative, [15]

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And the whole debt level at the PGNiG Group will be at a safe level anytime in the future.

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Operator [16]

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We have a follow-up question from Mr. Piotr from Citigroup.

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Piotr Dzieciolowski, Citigroup Inc, Research Division - VP [17]

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Apologies, these questions are taken one by one. I would like to ask them all in the same. Can you please tell us what's going on with Stalowa Wola project? When is this power plant going to start operations and any kind of guidance on potential profitability will be actually quite good, if you could provide some detail.

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Marcin Piechota, Polskie Górnictwo Naftowe i Gazownictwo S.A. - Head of the IR Division [18]

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Regarding the Stalowa Wola pipeline, it looks -- the schedule looks like that. At the end of this year, the unit will be synchronized to -- with the PSE and definitely, the end of project should be at the -- probably late first quarter of 2020. That's the update of -- on the Stalowa Wola pipeline.

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Operator [19]

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Does that answer your question?

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Piotr Dzieciolowski, Citigroup Inc, Research Division - VP [20]

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Not really. I was also asking about how -- what's the financial framework that this bond will operate in? Maybe a bit of a detail on the gas contracting prices, the spot prices, the index price, or is it a long-term contract or the ratios about it. So basically, I'd like to be able to determine a potential financial contribution of this asset to P&L.

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Unidentified Company Representative, [21]

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Yes. Thank you for the question. I'm sorry to say that the trading unit for heat from the newer facility will be TAURON, not us. So if you need this kind of information, you have to ask TAURON. We certainly have a general understanding of what will go on in terms of pricing and sales, but this is the TAURON responsibility. So please turn to them. But what I know -- from what we know as a company is that, certainly, the heat supply will be sustained for the following winter. There is no threat of it and, certainly, it will be under the regulation of tariffication system. That's all we can officially claim and for details, please turn to TAURON. I think they will have their first quarter conference still this month, May, so you may refer to them, but I don't think we have -- we are not used to disclose these kind of details, what is the influence of particular factors on the price or what is the relation between our -- or what margin do we do on heating, it's in -- in our case. In cases of Stalowa Wola, it's not -- again, it is not us. It is not PGNiG, but TAURON, which is salesman for heat to be producing in Stalowa Wola new facility.

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Piotr Dzieciolowski, Citigroup Inc, Research Division - VP [22]

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The reason I'm asking is that the different companies, including you and now the number of different gas projects, gas power generation and cogeneration project, and this one has lasted, from my memory, 7, 8 years. So I just wanted to have a bit of a benchmark how much these assets can make, especially that we are planning as a country to spend a couple tens of billions zloty on the several assets, but that's okay.

And can you give a little bit more details on where is the Baltic pipe project at the moment? Do we have the permission-ing? When is the construction going to start and so on, and how long that will last to build this pipeline?

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Unidentified Company Representative, [23]

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Well, thank you for the question. Well, it's -- just to remind you, if I may, it's not country to spend any billions zloty or single zloty, but it's companies. It's -- second, for Baltic pipe, we are on the same level of -- of awareness of it as all public because, due to the regulations, we are not allowed to scrutinize the operator's activity. So the only thing we know is what they announced publicly, and they -- what they announced and what we understand from their announcement is they are pretty on schedule with the construction, with permitting, with whatever they have, crushing of -- and cooperation with the Danish regulator -- with the Danish system operator, which is Energinet. So we can hardly provide any more details because we just don't know them and we don't even ask. Otherwise, we would be breaching the rules of [numbering]. So we are just awaiting and we keep being quite sure that they will be on schedule and on budget by the end of 2022, as we need it for our purposes. Thus, we have guaranteed from them, so that's we can only confirm, but no details about what they do. We don't even exactly know where the pipeline will be landing in Poland, will it be near Husów or any particular other place. But it will be certainly in the vicinity of Swinoujscie. So that's all. So I hardly provide any (inaudible).

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Piotr Dzieciolowski, Citigroup Inc, Research Division - VP [24]

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So in this context, can you please provide a little bit more information of how you envisage your gas procurement contract portfolio in 2023? Do you plan extension in that size or shape, the contract with the Russian counterparty or that's going -- you're going to switch away, away from this? And then where is this gas coming from? Is this all LNG? Or how should we think about 2023 gas portfolio?

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Unidentified Company Representative, [25]

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Portfolios, yes. Should I? Yes. Thank you. That's -- basically, we have 2 portfolios for the -- we call it basic loads for our customers, and they will consist of other than will be the Norwegian upstream gas. We will have by that time in 2,500 -- in 2.5 billion cubic meters a year, plus the outstanding amount up to almost 10 to be bought on the -- to be contracted from other producers, and we don't disclose our partners so far.

And the second portfolio is, of course, LNG. Both of them has been provided with the actual information, I think, some months ago, and these are these graphs of buildup, which we do in both of these portfolios. And we keep trying to inform the public, how we build this portfolio, and this will be to substitute Eastern volumes. This basically what we are standing of -- standing at. It's 2 portfolios. One is LNG and the second is the North Sea gas. That will be the substitution for Eastern supplies, which are the Yamal contract to be expired -- to expire by the end of 2022, of course, to...

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Piotr Dzieciolowski, Citigroup Inc, Research Division - VP [26]

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When you think about the pricing of this portfolio, how should -- can you give a little bit more details how much of it will be linked to crude oil, if anything? Will it be kind of a benchmark price bought on like a link to a spot market, the gas spot pricing in Europe or that's kind of a U.S. Henry Hub pricing? What kind of financial risk and exposure of the company will have in 2023?

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Unidentified Company Representative, [27]

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Certainly lower than it is now. And we -- there's 2 kinds of risk. One is pricing, of course. That's what we have run in case at the Stockholm Tribunal against our major supplier. This will most probably be better after we change portfolios. And the second major risk, which we'll be managing this way -- the same way, will be the risk of breach of supplies, which we are exposed to -- by nature, if I may say so. We witnessed 7 times since 2004. We've been witnessing, and we have to manage the 7 times the breaches of supply on a high cost, of course, and the expense of our customers, more or less. So there's these 2 things, which will certainly be after we exchange our portfolios from the eastern portfolio to the, let's say, northwestern portfolio. That's the thing. Of course, I will not disclose and nobody in the company will disclose any pricing details about benchmarking to Henry Hub or TTF or any other hub or all indexation. This is not to be publicly debated.

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Piotr Dzieciolowski, Citigroup Inc, Research Division - VP [28]

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But when I look at the other companies and I started to look at all kind of big European players recently, and they all kind of say a little bit about that risk that they take, that they buy. The financial risk gets to the spread between Henry Hub and TTF or they buy there or some details, or you just say nothing about the pricing and we kind of -- you will have a PLN 15 billion portfolio, which we will know nothing about the profitability of these trading activities.

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Unidentified Company Representative, [29]

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Now the difference is between us and other companies that we do not disclose these kind of things. If they can disclose, they certainly have a purpose to this. We don't have a purpose to disclose pricing and the level of risk. What -- all we do constantly and we have been doing since 3 years now is to lower the risk to the absolute minimum, whether it'd be financial risk or the disruption of supplies risk. For this reason, we can and whatever risk is outstanding, we can manage it in a way that's -- at least we pretend to manage it in a way we're pleased, of course, for the benefit of our customers. So that's the comment. If you really have a good knowledge from other companies, good luck. Dig even deeper down, but not with us. We'll not disclose any detail on benchmarking on any hub we have. This is the -- one of the major part of any contracts we have, and, certainly, it's under the clause of confidentiality between the partners selling and the -- and us and we'll not breach it. So sorry, no level of risk as -- of the kind you may need is available from PGNiG, obviously.

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Piotr Dzieciolowski, Citigroup Inc, Research Division - VP [30]

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Sure. And the last question on -- from my side on totally different subject, can you tell please us a little bit of what is your cost to serve for the retail customers that is reflected in the tariff or when you construct your offers to customers? In a range of zloty, how much do you spent per customer?

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Marcin Piechota, Polskie Górnictwo Naftowe i Gazownictwo S.A. - Head of the IR Division [31]

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Well, in terms of the retail clients, of course, the clients are divided into the tariff groups. So that differs, right? Basically, the PGNiG retail is responsible for service of gas or then they are buying gas on the Polish Power Exchange. So that's...

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Piotr Dzieciolowski, Citigroup Inc, Research Division - VP [32]

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I'm talking about the cost to serve, not as a gas contract, because I'm thinking about kind of introducing the competition. I've heard the figure PLN 500 million for your 5 million household customers. So that roughly gives PLN 100 per household, which is very high number. Can you confirm is it this range or not this range? How that confirms, we can kind of take a telecom industry and think about if the work they do is different or not, but they -- we could give a bit of a benchmark of how efficient your operations are on this front?

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Marcin Piechota, Polskie Górnictwo Naftowe i Gazownictwo S.A. - Head of the IR Division [33]

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Okay. So sorry, we didn't catch your question. So -- but yes, basically, we cannot comment on our cost of serving this group of clients because I don't think that any one of our competition is disclosing such information. So sorry for that, but we cannot comment on this.

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Operator [34]

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Our next follow-up question is from Robert Maj from IPOPEMA Securities.

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Robert Maj, IPOPEMA Securities S.A., Research Division - Analyst [35]

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Yes. One question on the new credit line. What should we expect about the financing cost, how they will change after your consolidation of this bond programs in the credit line in one big credit line? This is question number one.

And the question number two, I wanted to refer to the -- well, interview of the CEO in one of the newspapers regarding the concessions on the Polish deposits and the bureaucracy and the renewal of the concession actually gets heavy delays. I just wonder what would be the outcome of the -- to the production of the Polish gas from the Polish deposits. And in case the delays are bigger than they should be, you probably would need to input more gas and how this could evolve in the quarters ahead, if you can provide us a little bit of color on that.

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Unidentified Company Representative, [36]

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So regarding your first question about the financing cost. I can only say that the cost will be -- is competitive, given the existing market condition, and it is quite similar to the cost of financing that we have right now.

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Unidentified Company Representative, [37]

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First, permitting, and this is the permitting issue now. Well, there's the -- any delay is detrimental to our production component. As I've certainly said several times already, that's -- every single cubic meter of gas produced in Poland is always cheaper and better than any imported gas, whether it be Russian, Norwegian, American Italian or any other one. So we insist to have our concessions in due time -- to be issued in due time, and there is nothing wrong with our applications to the regulatory body, which is the chief geologists of the country. We keep trying to do it, to have it on time. We have several examples of delays, some of them really long. But the concrete number, what is the difference and how it will be -- it will -- in case we are missing Polish gas in the portfolio, it will be -- it will have an adverse effect to the clients, certainly, and that's for sure because then we have to import more, that is right, and will it be from the east as we do or from the west as we do, too. It depends on the difference of prices and other conditions, but certainly it is the -- to provide an adverse effect for the pricing for the clients. So we need to have as much gas produced domestically as we can, and we do all the best to have it, but without licenses, we can't have them. So that's the -- I can only confirm we do our best to have this. This geographic board in which we witness since beginning of 2019, I hope it will come to the end, because it's really urgent and all the politicians have been alarmed by our company to make them aware that we need this licensing process to go smoothly and timely. As it is, I have to say and I regret to say that, but it's still -- a lot of concessions, applications are pending beyond only line of -- beyond any timing which is provided with the -- our Civilian Code of Conduct, Civilian (inaudible) see in there.

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Unidentified Company Representative, [38]

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Civil Code.

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Unidentified Company Representative, [39]

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Civil Code, yes. So that's the thing we did as company, as a managing board, we've asked several politicians and officials to speed it up in a way that we don't need to import more than we necessarily have to. And we -- and you may remember, we produce more or less 4 billion cubic meters a year, and we would like to -- and there's a big effort to keep this number over the years, because the several deposits, several reserves are depleting due to production. We keep trying to make this base of ratio, which is production to reserves ratio, on the sale level. So far, it is satisfactory, but we need to produce out of the licensing acreage as quickly and as much as we can, without any bureaucratic delays, which I have to confirm they still happen. I'm sorry, does that give you clarity?

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Robert Maj, IPOPEMA Securities S.A., Research Division - Analyst [40]

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Okay. If I may follow up just a little bit more on this. So if -- you mentioned that [koming mao] and the question, that they have like over 2.5-year delay or over a year delay, it means that you simply can't produce any more from this particular deposits.

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Unidentified Company Representative, [41]

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Sometimes it happens. Sometimes, yes. Sometimes that happens, and the most annoying thing is that most of the applications we filed with the Chief Geologist is about to prolong and continue licenses, which we bought years ago as a company. So for example, we have licenses this year in early '90s or in late '80s for 30 years, and then now we need them to be renewed. So nothing, it's actual -- there is nothing actual change. We produce, and we certainly need to prolong it because the deposits are still productive, especially we launched -- we've already learned how to squeeze out more gas or oil, mostly gas, out of the deposits, which have been estimated for lower results before. So we certainly need what every single applications we filed with the geologist -- Chief Geologist of the country, the regulator, is worth thinking of and worth producing.

On the minority of this, applications are for new licenses because we don't expect major discoveries of oil and gas deposits in Poland. That's, unfortunately, true and whoever is saying something else is just, well, misleading you. There is no hope for big -- real big gas or oil deposits in Poland, maybe with one exception, which we will know by the end of the year. But in general, there is no possibility to discover more than we -- what we have now. So renewing the existing licenses is especially important, and we attach a lot of attention and importance to this issue. No bureaucracy for the sake of our consumers. We need Polish gas to be produced swiftly, timely and supply to the markets immediately. Sorry for this explanation, but that's very annoying thing. Thank you.

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Robert Maj, IPOPEMA Securities S.A., Research Division - Analyst [42]

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No. That's fine. I was just wondering that probably in Carpathian Mountains, there are still deposits that could be explored with really high quality of crude and gas. But just referring to -- just wanted to come back to this Przemysl new drillings, you did new horizontal seismic and new drillings with -- which turn out that there is more gas over there, with 10 million cubic meters to be produced a year, which means that the current deposit was underestimated. So I just wonder whether the other deposits you will go ahead with new kind of 3D seismic and you will check and whether the old kind of deposits that were thought to be depleted that could be also being prolonged -- this lifetime could be prolonged. And as such, what kind of CapEx should we expect to happen in -- for the Polish -- for search in Poland in years ahead, if you could also say that?

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Unidentified Company Representative, [43]

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Well, it's -- I can hardly say it's limitless because it is not, but in terms of financing, it's -- we never had any problem with it. This is -- well, bankable -- mostly bankable -- most -- not of all of them are bankable projects. In terms of Przemysl, this is the biggest gas deposits in Poland, with quite high production, annual production is over 500 million cubic meters of gas anyway. And we've -- especially, we've made it -- we've opened a dedicated program for this. It's called Husów deposits, which means that we scrutinize every single pad or any single field -- gas fields or oilfields in a special way, combining different softwares. And the outcome of this is not yet completed as per Przemysl field is concerned, but it's still, yes, they took off of PLN 10 billion of more reserves. I can only confirm, yes, it is, or even more. As I said, it's not yet completed. We have over 5 -- 800, 800 wells in this area, in this field, and we have to double check what we have. But certainly, the nice figure of PLN 10 billion more reserves will be not -- will be not sized down. It will be either confirmed or it will be higher than PLN 10 billion.

By the end of this year, we will complete 3 particular fields. One of them is Przemysl. A lot of work to do, as I said, over 800 drillings to be included into the model. So that's a lot of quite simple, but important work to be done.

Your question was about the reserves, right? Is it something more or less? Yes. So yes, it is. I was just informed that CapEx, yes, it will be this year CapEx. 2019, domestically, for exploration and production perhaps in Poland will be roughly PLN 1 billion, which is (foreign language)

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Unidentified Company Representative, [44]

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(inaudible)

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Unidentified Company Representative, [45]

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So in terms of our countries, EUR 250 million or more. Not very much more, but slightly more -- possibly slightly more. This is upstream CapEx for this year in Poland.

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Operator [46]

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(Operator Instructions) We have no further questions. Dear speakers, back to you for the conclusion.

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Marcin Piechota, Polskie Górnictwo Naftowe i Gazownictwo S.A. - Head of the IR Division [47]

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Ladies and gentlemen, thank you for your participation in today's call. As usual, at 11:00, we'll be streaming online at PGNiG.pl the press conference, to which we sincerely invite you. If you have any additional questions, please contact the IR team. We wish you a pleasant day, and goodbye. Thank you for your participation.

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Operator [48]

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This concludes today's conference call. Thank you all for your participation. You may now disconnect.