Poland's PGE resumes dividends, cuts investment target under 2035 strategy (updated)

PGE Polska Grupa Energetyczna SA

Mon 11:22

Rewrites to add investment target cut in paragraph 1, background on peers in paragraph 2 and a bullet point summary with additional details on strategy.
Oct 19 (Reuters) - Poland's biggest power producer PGE PGE.WA plans to resume dividend payments under an updated strategy, which also cuts its 2025-2035 investment target to about 210 billion zlotys ($54 billion) from a previously planned 235 billion zlotys.
     The utility has not paid a dividend since 2016, having suspended payments to fund its investment programme. It now joins Polish peers Tauron TPE.WA and Enea ENAE.WA which also resumed dividends recently after years-long pauses.
Dividend yield capped at 5% for the first payout in 2027 from 2026 profit
Renewables and storage take the biggest share of investment cuts, with their combined allocation falling by 19 billion zlotys despite unchanged output targets
PGE targets cumulative EBITDA of about 209 billion zlotys over 2025-2035, with annual EBITDA of about 15 billion in 2030 and more than 30 billion in 2035
It plans three data centres developed through partnerships, with 6 billion zlotys earmarked for customer energy solutions including AI campuses and industrial zones
The coal unit is expected to post an EBITDA loss of 3.3 billion zlotys in 2030 and a loss of 1.5 billion zlotys in 2035
($1 = 3.8978 zlotys)

(Reporting by Rafal Nowak and Alicja Surdy in Gdansk, editing by Milla Nissi-Prussak)
((RafalWojciech.Nowak@thomsonreuters.com; +48 58 769 66 63;))