PGNiG: Recommendation of the Management Board of PGNiG to allocate net profit for 2021 to increase reserve funds

The Management Board of Polskie Górnictwo Naftowe i Gazownictwo SA („PGNiG”, „Company”) informs, that on May 10th, 2022 it took decision to recommend to the General Meeting of PGNiG, after obtaining an assessment from the Company’s Supervisory Board, to allocate the net profit for 2021 in full amount of PLN 5,120,798,108.45 to increase Company’s reserve funds.

Management Board’s decision was taken due to ongoing situation on European commodity markets since 2021 i.e. higher prices of natural gas and their increased volatility compared to previous years. Pursuing strategic tasks related to ensure Poland's energy security by securing alternative gas supplies to the country after suspension of deliveries of natural gas by PAO Gazprom and OOO Gazprom export under Yamal Contract (see Current Report No. 27/2022 from April 26th, 2022), PGNiG identifies an increased demand for working capital in current year.