2.1 Key information on the Group and its reportable segments.
These consolidated financial statements include financial information of the Parent and of:
- 14 direct subsidiaries of PGNiG, and
- 9 indirect subsidiaries of PGNiG.
PGNiG S.A. holds 100% of shares in the consolidated subsidiaries, with the exception of PGNiG GAZOPROJEKT S.A., in which PGNiG holds 93.73% of shares.
In the case of Polski Gaz Towarzystwo Ubezpieczeń Wzajemnych, PGNiG is that company’s sole equity holder holding 100% of its share capital, while the remaining members hold shares in the company’s reserve capital.
Non-controlling interests at subsidiaries are not material.
The Group identifies five reportable segments.
Below is presented a classification of the Group’s fully-consolidated entities by reportable segment. For more information on the Group structure, see the Directors’ Report on the operations of PGNiG S.A. and the PGNiG Group.
Figure 1 Group structure by reportable segments
| Segment | Description | Operating segments and aggregation criteria |
|---|---|---|
|
Exploration and Production
|
The segment’s business focuses on extracting hydrocarbons from deposits and preparing them for sale. It involves the process of exploration for and production of natural gas and crude oil, from geological surveys and geophysical research, through to drilling, development of gas and oil fields, and production of hydrocarbons. The segment sells natural gas to customers outside the Group and to other segments of the PGNiG Group. It also sells crude oil and other products in Poland and abroad. | This reportable segment comprises the operating segments of PGNiG S.A. (the exploration and production business) as well as the Group companies specified in Figure 1.
The key aggregation criteria were similarity of products and services; similar characteristics of the production process and of the customer base; and economic similarities (exposure to the same market risks, as reflected in the correlation of results (margins) generated by the aggregated operating segments). |
|
Trade
|
The segment’s principal business activities are sale of natural gas (imported, produced or purchased on gas exchanges), operation of underground gas storage facilities for trading purposes (Mogilno, Wierzchowice, Kosakowo, Husów, Brzeźnica, Strachocina, Swarzów and the storage system in Ukraine), and electricity trading. | This reportable comprises the operating segments of PGNiG S.A. related to the gas fuel and electricity trading business, as well as the Group companies specified in Figure 1.
The segment operates underground gas storage facilities in Poland to ensure Poland’s energy security and to build a gas portfolio that meets the market demand which is subject to seasonal fluctuations. The key aggregation criteria were similarity of products and services, similarity of the customer base, and similar economic characteristics. |
|
Distribution
|
The segment’s principal business activity consists in distribution of natural gas via distribution networks to retail, industrial and wholesale customers, as well as operation, maintenance (repairs) and expansion of gas distribution networks. | This operating segment overlaps with the reportable Distribution and comprises Polska Spółka Gazownictwa Sp. z o.o. and its subsidiaries specified in Figure 1. |
|
Generation
|
The segment’s principal business activities consist in generation and sale of electricity and heat. | This reportable segment comprises the following operating segments: PGNiG TERMIKA S.A. and its subsidiaries.
The key aggregation criteria were similarity of products and services, similarity of the customer base, and similar economic characteristics. |
|
Other
|
This segment comprises operations which cannot be classified into any of the segments listed above, i.e. the functions performed by the PGNiG Corporate Centre, engineering design and construction of structures, machinery and equipment for the extraction and energy sectors, as well as catering and hospitality and insurance services. | It includes PGNiG S.A.’s activities related to corporate support for other reportable segments, and the Group entities which do not qualify to be included in the other reportable segments, specified under Other Segments in Figure 1. |
The reportable segments have been identified based on the type of business conducted by the Group companies. The individual operating segments were aggregated into reportable segments according to the aggregation criteria presented in the table below. The parent’s Management Board is the chief operating decision maker (CODM).