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Polish energy PGE posts lower Q3 net profit dragged by coal sector

Poland's biggest utility PGE reported a near 24% yearonyear fall in its thirdquarter net profit on Tuesday, in the middle of ongoing weakness in its coalbased traditional power generation section.

WHY IT is very important

PGE, in addition to other Polish utilities, is under pressure from falling profitability in its coal-fired power generation segment, having to manage the expense of carbon emission rights and the growing share of electrical power output being taken by renewables.

The Polish federal government is working on a plan to spin off coal-fired power plants from energies to increase the concentrate on green energy, as banks seek to prevent funding coal-dependent business.

BY THE NUMBERS

PGE'S net earnings for the quarter slid to 0.73 billion zlotys ($ 177.84 million) from 0.95 billion in 2023, validating its earlier price quotes.

Income fell 28% to 15.56 billion zlotys on the year, mainly due to a decrease in earnings from the sale of electrical energy in the traditional generation sector.

CONTEXT

In late September, the business revealed strategies to cease electrical energy production in the remaining coal-fired systems at one of the five power plants comprising its traditional power generation segment by the end of 2025.

(source: Reuters)