Bloomberg News

Gornictwo of Poland Says It’s Losing Money Importing Natural Gas

October 05, 2011

Oct. 5 (Bloomberg) -- Polskie Gornictwo Naftowe i Gazownictwo SA, Poland’s dominant natural-gas supplier, is posting losses on imports of the fuel that aren’t being covered by profit on domestically produced gas, a company official said.

“This pattern has persisted since the middle of the year,” Deputy Chief Executive Officer Miroslaw Szkaluba told reporters in Warsaw today.

PGNiG, as Gornictwo is known, buys about two-thirds of its gas from Russia at a price set in dollars based on a nine-month average of oil-related products, and sells it at a rate set in zloty by the regulator. In the third quarter, the zloty weakened by 17 percent against the dollar.

The company boosted sales of the fuel in January through September by “several percent” from a year earlier, Szkaluba said. Third-quarter sales declined “slightly,” he said.

--Editors: John Buckley, Rachel Graham

To contact the reporter on this story: Marek Strzelecki in Warsaw at mstrzelecki1@bloomberg.net

To contact the editor responsible for this story: Nathaniel Espino at nespino@bloomberg.net


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