Polish assets ministry reported to be working on coal mines spin-off (updated)

Enea SA

11/04/2024 08:48

(Adds PGE share price in last paragraph)
       WARSAW, April 11 (Reuters) - Poland's ministry of state
assets is working on separating the country's coal assets from
its state-controlled utilities, Parkiet newspaper reported on
Thursday, as the government examines options for the two
sectors.
    Polish utility shares fell sharply in Warsaw on Wednesday
after Industry Minister Marzena Czarnecka said that instead of
spinning off coal mines they should be linked to utilities.
    Czarnecka's ministry is in charge of mining, which is under
pressure from rising costs and massive coal surpluses, while the
state assets ministry supervises state-controlled utilities.
    "The ministry of state assets is analysing a gradual but
unequivocal separation of coal assets from energy utilities,"
Parkiet cited the ministry as saying.
    Fitch Ratings said last month that Poland's state utilities
risk credit ratings downgrades unless it comes up with an
alternative to the previous government's plan to allow them to
spin-off coal assets.
    Although Poland's new government has shelved the plan to
spin-off state-owned utilities' coal-fired power plants and
bundle them into a new state-owned company it has yet to
announce an alternative.
    Last week, Poland's biggest utility PGE called for a quick
decision by the government.  
    PGE shares were up 3.7% as of 0744 GMT. 

 (Reporting by Marek Strzelecki; editing by Alexander Smith)
 ((Marek.Strzelecki@thomsonreuters.com;))