PGNiG in talks to buy foreign production assets
May 12, 2014
Poland's incumbent gas firm PGNiG is looking for production assets abroad and is in talks on several potential projects, CFO Jaroslaw Bauc told reporters.
"We are looking for assets mainly abroad, in the entire chain from exploration to extraction," Bauc said. "We are looking through various projects, we are in the midst of a few processes regarding production assets."
PGNiG is first of all interested in Norway but does not shy away from more risky investments, the official said.
"We are first of all interested in Norway as that's where we have a tax shield to realize, but we will also try to diversify activity in this respect to countries with higher risk and hence a higher return potential," he said. PGNiG deposits in Pakistan "look promising" and Iran could also be considered.
Financing should not pose a problem, Bauc said.
Meanwhile, the company beat the market's best guess by PLN 200 million or 20% with a PLN 1.18 billion attributable net profit in Q1 2014, Q1 financial statements out on Friday showed.
The group continues to lean heavily on its upstream efforts for the bulk of its earnings, but managed to move into palpable profits in the core segment of gas sales as a drop in gas purchase prices rendered a long-sought positive margin on gas sales.