Corporate center

PGNiG Technologie is active mainly on the domestic oil and gas market and, to a lesser extent, on foreign markets. Its business covers three main areas: gas pipelines and gas infrastructure, exploration and production, and storage of gas. With regard to the first area, the company provides construction and assembly services and supplies finished products used in the construction, extension and repair of gas networks and gas infrastructure. Its operations in the exploration and production area consist in the provision of construction and assembly services as well as finished products dedicated for hydrocarbon production and exploration. In the storage business, PGNiG Technologie provides products and services relating to the development, repair and operation of gas storage facilities.

In 2020, as part of its business diversification efforts, the company began executing orders in new areas of thermal and gas-fired power generation and the supply of compressor sets. In 2020, PGNiG Technologie provided its services to PGNiG Group companies and third parties, including: GAZ-SYSTEM, ORLEN Upstream Sp. z o.o and DC Goryzonty i MHWirth AS. For PGNiG TERMIKA, the company delivered gas infrastructure for the peak load boiler plant at the Żerań CHP plant.

The principal business of PGNiG Serwis sp. z o.o. is the provision of comprehensive finance and accounting services, HR and payroll services, ICT services, direct physical security services, technical security services, property management, and management of adjacent areas for the PGNiG Group companies.

Its business consists in preparation of pre-design and design documentation for the gas, fuel and energy as well as general construction sectors. After a period of high demand for design services for large strategic projects from the company’s main customers, i.e. PERN S.A., OGP Gaz-System S.A. and PSG, the market is now saturated, with construction projects in the execution phase. Due to the situation on the fuel market, the segment of storage and distribution of liquid fuels shows some potential for new projects. Work is also under way on the construction of underground gas and/or oil storage facilities.

Given the number and nature of the tenders in which the company participated in 2020, it is important to note that efforts were focused on large, strategic projects executed by Polish companies, as well as smaller projects that were expected to generate higher margins.

Geovita’s business involves leisure-related activities, spa treatment services, health protection, medical rehabilitation, and provision of conference and training services. The company’s facilities are located in Dąbki, Mrzeżyno, Dźwirzyno, Jadwisin near Serock, Płotki near Piła, Gronów near Łagów, Jugowice, Lądek-Zdrój, Zakopane, Wisła, Złockie near Muszyna, Krynica-Zdrój, Czarna near Ustrzyki Dolne and Kraków. In 2020, the restructuring process initiated in 2017 was continued with a view to increasing the company’s value. However, the impact of the COVID-19 pandemic severely limited further restructuring opportunities, resulting in the temporary suspension of business activities.

Polski Gaz TUW offers insurance cover to PGNiG Group companies, including: property, motor and third-party liability insurance, legal protection as well as insurance guarantees. It also provides insurance cover to third parties, especially from the power sector. In 2020, the company continued cooperation with the PGNiG Group companies in relation to insurance contracts.

The key project completed in the reporting period involved operational launch of Polski Gaz Towarzystwo Ubezpieczeń Wzajemnych na Życie, a subsidiary of Polski Gaz Towarzystwo Ubezpieczeń Wzajemnych, whose main focus in the initial period of operation is and will continue to be offering Employee Pension Plans in the form of unit-linked group life insurance. Polski Gaz TUW na Życie formally began its activities in December 2019, with actual operations starting in 2020.

Polski Gaz TUW launched two insurance products, marketed in the PGNiG OD network, i.e. “Doradca Prawny dla Ciebie” and “Doradca Prawny dla Firmy” legal service packages, which provide access to legal advice and reimbursement of lawyer’s fees. Both products are available at PGNiG OD’s customer service offices across Poland.

PGNiG Ventures’ strategy is to invest in companies with growth potential or those that are in the rapid growth phase and demonstrate continued ability to growth. In 2020, the company launched a programme to search for targets meeting the investment criteria, which will enable it to estimate the scope and level of investments in 2021. By the end of 2020, PGNiG Ventures had identified and prepared documentation for 6 projects in such areas as cyber security, electric vehicle charging systems and photovoltaic systems.

In 2021–2023, the company will focus on growth within its existing markets. This will involve in particular activities relating to projects and deliveries for the hydrocarbon production industry. Within the Oil & Gas sector, business development efforts have been made to build new competencies in acquiring contracts for delivery of gas compressor sets and gas-fired power generation facilities.

To expand its current project portfolio and order book, the company will take steps to secure contracts in the gas transmission and distribution market and to develop export sales of finished goods (Norway, Ukraine).

In 2021, PGNiG Serwis intends to continued its activities towards implementation of the Group’s strategic plans. PGNiG Serwis sees opportunities in the demand for optimisation measures and reduction of operating costs, which is facilitated by the company taking over support functions and services for more companies in the PGNiG Group. PGNiG Serwis also intends to expand its personal and property security business, IT support and property management services.

A substantial drop in the number of orders for large strategic projects is expected in 2021, with a simultaneous decrease in pricing levels compared to the prices offered in 2019 and 2020. The nature of the projects will change, with smaller and less significant projects prevailing. A potentially positive change may be seen in the gas power and district heating sectors, but this will largely depend on the country’s energy policy and also on the EU’s approach to this type of investments.

New trends in the company’s market include investments in low-carbon technologies such as hydrogen, power to gas, biomethane and geothermal projects. This is an opportunity for technological and market development within and outside the PGNiG Group. Intensification of activities in this area is one of the key elements of the 2021-2023 strategy prepared and adopted by the company.

In the near future, Geovita will continue its restructuring efforts as regards cost optimisation, efficiency improvement across all business areas, and divestments of unprofitable assets.

The challenges facing Poland Gaz TUW in 2020 were the operational launch of its subsidiary Polski Gaz TUW na Życie, and the taking over by the new company of the management of assets accumulated in the Group companies’ Employee Pension Plans. According to its strategy for 2021-2025, Polski Gaz TUW will continue to operate as a subsidiary of PGNiG providing it with end-to-end and effective insurance services.

PGNiG Ventures expects to continue its equity investments in 2021 and beyond. Accordingly, it plans to prepare investment documentation for two to four projects in the third and fourth quarters of 2021, with a view to making further investments in the first quarter of 2022.