The WSE index for fuel companies may soon consist of companies which today are PGNiG subsidiaries. They focus on gas exploration, seismic and geophysical research as well as engineering. There are over ten of them. PGNiG would like to consolidate these firms and – if the market situation improves – list them on the Warsaw Stock Exchange. Another option for them is an investor from their sector.
“They are too small today. One failed contract may be potentially dangerous to them. We want to merge them to strengthen their potential and improve economic effectiveness”, Miroslaw Szkaluba, PGNiG deputy CEO responsible for its restructuring.
He admitted that the companies need capital: altogether PLN 900m.
“Because PGNiG has its own needs, it is not able to prove this capital to its subsidiaries. The firms have limited credit lines. Therefore and IPO is a potential solution”, Miroslaw Szkaluba added.
Analyses are being conducted right now how to consolidate these companies. PGNiG would rather not merge them into one firm not to found a monopoly.
“There are at least three variants. We may merge companies with similar activities or those working in close regions. We may also found companies able to offer complex services”, Miroslaw Szkaluba added.
“PGNiG has to strengthen its servicing companies if it wants them to develop.
They operate in many regions of the world but because they are small they are
not able to win big contracts. That’s why it’s necessary to consolidate them.
However, looking for capital for these companies will make sense when oil prices
rebound. If they fall below USD 50 per barrel, it will be hard to convince
investors that it’s an attractive business”, Kamil Kliszcz, DI BRE analyst
commented.