Gas crisis may help Polish PGNiG's profits-CEO
WARSAW, Jan 9 (Reuters) - Polish gas monopoly PGNiG PGNI.WA will likely benefit from the ongoing gas row between Russia and Ukraine over prices and debt, the company's chief executive said on Friday.
PGNiG generates losses on sales of imported gas due to gas price setting by energy regulator URE.
"Certainly we will not lose on the crisis," Szubski told reporters on Friday.
Szubski added that high prices of imported gas, generally tied to oil prices with a nine-month delay, would continue until March-April and would gradually drop thereafter, trailing the lower crude prices.
BZ WBK analysts estimate the price of imported gas will reach about $498 for every 1,000 cubic metres while the average price PGNiG charges its clients is estimated at $338.
The prices PGNiG charges its clients are set by the state regulator URE. They are a recurring source of conflict between the company and the regulator, which refuses to raise tariffs as high and as often as PGNiG would like.
The company makes up the difference by making a profit on cheaper domestic gas and oil production. (Reporting by Patryk Wasilewski; editing by Simon Jessop and Rupert Winchester)
