Courtesy of PGNiG

Poland's Energy Regulatory Office (URE) has rejected state-controlled gas monopolist PGNiG's request to be allowed to charge higher prices for the gas it sells.

“Lack of URE's approval means that PGNiG will now find it difficult to make profits on the sale of gas, not only in Q4, 2012, but also in the whole of next year. URE seems unlikely to change its mind” Kamil Kliszcz, analyst at BRE Bank, told Puls Biznesu.

He said that the market had expected a hike in gas prices, especially after PGNiG reported weak results for Q2.

PGNiG recorded a net loss of zł.314 million for the second quarter of 2012, seeing its margin on gas sales drop to -13 percent as the US dollar strengthened against the złoty during the period. PGNiG pays Gazprom in dollars.

Poland A.M.