ENERGO: Poland’s top power company PGE seeks €710mn in new share issue

Polish state-controlled power company PGE is seeking PLN3.2bn (€710mn) in new capital to step up the transition to low-carbon power generation, the Warsaw-listed company said on January 18.

PGE plans a share issue directed at existing shareholders in the company, the company said. That hints at an increased involvement of the Polish Treasury, which holds a 57.4% stake in PGE.

No other PGE shareholder has more than a 4% stake. Pension funds National Nederlanden, Aviva Santander, and PZU each has over 3%. Three other pension funds are between 1%-3%.

“We will allocate the acquired capital to the development of capital-intensive investment projects, such as the distribution network, new photovoltaic projects, acquisitions of onshore wind farms and solar farms, and low-emission gas sources,” PGE’s CEO Wojciech Dąbrowski said in a statement.

PGE plans to become climate-neutral by 2050, reaching a 50% share of renewable energy in the portfolio by 2030. Also by 2030, PGE plans to earmark PLN75bn for investments.

PGE’s share price dropped 1.6% to PLN8.13 on the Warsaw Stock Exchange on January 18 following the announcement. 

The company owns major coal-fired assets, including Poland’s biggest power plant, the lignite-fired installation in Belchatow, a major emitter of carbon dioxide.

Poland’s government wants the European Commission to agree to a plan of shifting coal assets from PGE and other state-controlled power companies to a separate entity. That would free the companies of troublesome assets and improve their credit ratings, Warsaw assumes.