Manufacturing capital

The PGNiG Gro­up stri­ves to bu­ild a cul­tu­re of em­ploy­ee en­ga­ge­ment and dri­ve in­no­va­tion. In the ca­se of ener­gy com­pa­nies, the pro­blem of ge­ne­ra­tion gap is be­co­ming in­cre­asin­gly wi­de­spre­ad. De­spi­te ad­van­cing au­to­ma­tion, the ef­fi­cien­cy of pro­duc­tion as­sets re­ma­ins hu­ge­ly de­pen­dent on the ava­ila­bi­li­ty of com­pe­tent and well qu­ali­fied tech­ni­cal per­son­nel.

PGNiG ta­kes me­asu­res to re­cru­it hi­gh­ly qu­ali­fied staff and ma­na­ge ge­ne­ra­tion gap thro­ugh pro­jects such as:

• ‘GeoTalent’ – an educational and internship programme targeted at students interested in future career in the E&P industry. The programme is meant to enhance the students’ theoretical knowledge and develop hands-on skills in hydrocarbon exploration, appraisal, and production from conventional and unconventional sources.
• ‘Energy for the Future’ – 2019 saw the fourth edition of the scholarship programme run by the Ministry of Energy, the PGNiG Group, PGE, PKN ORLEN and PSE. Its objective is to seek out the best university students and graduates to reinforce staffing in the industry.
• Mentoring Program – in 2019, a pilot initiative was carried out, the purpose of which is to share professional experience and distribute substantive knowledge from employees who are experts in their field and with many years of experience to employees who do not have such knowledge.

In­te­rac­tions be­twe­en na­tu­ral ca­pi­tal and ma­nu­fac­tu­ring ca­pi­tal may be ana­ly­sed on se­ve­ral le­vels:

• in the Exploration and Production segment, the Group must have at its disposal equipment and technologies enabling hydrocarbons to be obtained from various deposits – including small and unconventional deposits. In 2020, the hydrogen competence development program was launched at the PGNiG Group.
• The Generation segment is largely based on coal assets. The Group is modernizing the existing capacity in accordance with BAT requirements. New investment projects will be based primarily on gas – a fuel with a much lower impact on the natural environment.

Pro­per­ty, plant and equ­ip­ment are the lar­gest com­po­nent of the PGNiG Gro­up’s as­sets. As at De­cem­ber 31st 2020, the­ir va­lue re­ached PLN 42,565m. Inve­st­ments in pro­duc­tion as­sets re­qu­ire the use of exter­nal fun­ding ra­ised in the fi­nan­cial mar­ket or in­ter­nal funds held by the Gro­up. In li­ne with the PGNiG Gro­up’s Stra­te­gy ad­op­ted in March 2017, to­tal CAPEX will exce­ed PLN 34bn in 2017-2022, whi­le ave­ra­ge an­nu­al ca­pi­tal expen­di­tu­re in 2017−2022 will amo­unt to ca. PLN 5.7bn:

• of which almost a half (45%) will be spent on hydrocarbon exploration and production,
• almost 30% of capital expenditure will be spent on developing the distribution business,
• ca. 13% − on power and heat generation projects,
• additionally, ca. 12% of CAPEX will be allocated to other, selected growth projects offering attractive returns, including in distribution, trading, power and heat generation.

One of the new strategic areas of the PGNiG Group is the activity in the segment of renewable energy sources. About PLN 4 billion will be allocated to the construction of the RES segment.

In 2020, the capital expenditure of the PGNiG Group on property, plant and equipment amounted to approximately PLN 6.8bn, 2% higher than the expenditure incurred in 2019.

Investments in assets are aimed – in the medium and long term – at increasing the efficiency and scale of the Group’s operations. In line with the PGNiG Group’s strategy in force for 2017-2022 with an outlook until 2026, the investment program is to generate a cumulative Group EBITDA of approximately PLN 33.7 billion in 2017-2022 and a prospective increase in the Group’s EBITDA to an average annual level of approximately PLN 9.2 billion in the years 2023-2026.

The Gro­up’s ope­ra­tions and the lo­ca­tion of its pro­duc­tion as­sets ha­ve a di­rect be­aring on the li­ving con­di­tions and de­ve­lop­ment of en­tre­pre­neur­ship across all re­gions of Po­land.

• Ma­ny in­du­stries re­ly on gas as one of the­ir key fe­ed­stocks, and the ac­cess to ‘blue fu­el’ sti­mu­la­tes eco­no­mic growth;
• The gas sec­tor is one of the co­un­try­’s ma­jor em­ploy­ers. The clo­se­ness and con­ti­nu­ing expan­sion of PGNi­G’s pro­duc­tion as­sets gu­aran­te­es fi­nan­cial sta­bi­li­ty to ne­ar­ly 25,000 em­ploy­ees and the­ir fa­mi­lies;
• The re­gio­nal pre­sen­ce of PGNi­G’s pro­duc­tion as­sets is al­so a so­ur­ce of ta­xes for mu­ni­ci­pa­li­ties and an op­por­tu­ni­ty to ta­ke ad­van­ta­ge of CSR and spon­sor­ship pro­jects run by Gro­up com­pa­nies.

By en­ga­ging in the an­ti­-smog cam­pa­ign, the PGNiG Gro­up pro­mo­tes na­tu­ral gas as a so­ur­ce of ener­gy. The pro­-e­co­lo­gi­cal of­fer of the PGNiG Gro­up for cu­sto­mers, sup­por­ting envi­ron­men­tal is­su­es, in­c­lu­ded:

• deliveries of ecological CNG/ LNG fuel for public transport companies and companies from the municipal sector;
• construction of CNG and LNG refueling stations;
• eBOK / EKOfaktura encouraging through numerous campaigns promoting the use of electronic invoices instead of paper invoices.