Polish utilities slide on fear of 'convenient' sector-wide dividend cuts

Ipopema Securities SA

28/07/2025 12:05

** Shares in Polish state-owned utilities PGE PGE.WA, Enea ENAE.WA and Tauron TPE.WA slide amid fears of dividend cancellations across the sector

** The sell-off was triggered after PGE, Poland's largest utility, announced a nearly 11 billion euros ($12.83 billion) impairment on its conventional energy assets

** Robert Maj from Ipopema suggested the writedown provides a pretext for suspending dividend payouts

** "The large net loss will be a convenient explanation for not paying dividends", Maj says

** He also notes the news reminded investors of Tauron's strategy, which sets the earliest dividend payout for 2029

** The broad negative sentiment has dragged Poland's WIG-Energy .ENER  stock index down by as much as 3.2%

** By 11:04 GMT PGE is down 4.5%, Tauron slips 3.2% and Enea is down 2.5%

($1 = 0.8571 euros)

 (Reporting by Marta Maciag)

 ((marta.maciag@thomsonreuters.com;))