Polish utilities slip on coal assets uncertainty

Enea SA

03/12/2024 09:36

** Shares in Polish state-owned utilities PGE  PGE.WA , Enea  ENAE.WA  and
Tauron  TPE.WA  slide on Tuesday on uncertainly over the plans for separation of
their coal assets
        ** Local daily Dziennik Gazeta Prawna reported that instead of coal
assets separation, the government focuses on companies reorganisation and
individual transformation scenarios for them
    ** The coal assets spin-off was first mulled by the previous government,
which aimed to bundle the assets into new state-owned company, but the plan was
scrapped last year, with an alternative scenario yet to be presented
    ** "It looks increasingly likely that there will not be an outright coal
assets separation, but a gradual process composed of closures of less
systemically important power plants and some kind of support for the remaining
coal fleet," Erste Group analyst Petr Bartek says in a note
    ** He adds that such scenario would be "problematic" mainly for PGE, as it
would substantially limit its renewable energy sources ambitions, followed by
Enea, and Tauron
    ** PGE and Tauron have been urging the government to come up with a rapid
plan for their coal-fired power plants as they hurt their profitability
    ** Utilities stocks drag Warsaw energy index WIG Energy  .ENER  down 3.9%,
to its lowest since Nov. 19
    ** By 0921 PGE is down 5.7% to its lowest since August, Tauron slips 4.2%
and Enea is down 3%

 (Reporting by Mateusz Rabiega)
 ((mateusz.rabiega@thomsonreuters.com;))