Poland to Keep Close Watch on Dividends From State Companies

Poland’s government will be “cautious” with distributing dividends from state-controlled companies given the need for investment particularly in the energy industry, Deputy Prime Minister Jacek Sasin was quoted as telling the PAP newswire.

(Bloomberg) —

Poland’s government will be “cautious” with distributing dividends from state-controlled companies given the need for investment particularly in the energy industry, Deputy Prime Minister Jacek Sasin was quoted as telling the PAP newswire.

State-run power utilities, such as PGE SA and Tauron Polska Energia SA, face rising spending as the European Union’s most coal-reliant economy seeks to transition to clean energy. Oil and gas giant PKN Orlen SA said last month it plans to invest 320 billion zloty ($73 billion) by 2030 to reach carbon neutrality by mid-century. 

“A dividend must be paid, but what I’ve always paid attention to is that its level gives the company investment capacity,” Sasin, who supervises the state firms, told PAP when asked about Orlen’s proposal to pay out 5.5 zloty a share from last year’s profit. 

The EU is pressing Poland to introduce a windfall tax on coal and oil companies, Sasin said. Poland is among a minority of EU countries that hasn’t done so.

Prime Minister Mateusz Morawiecki said Saturday he plans to discuss pricing policies of state energy companies with Sasin with the goal of lowering charges to reflect falling prices on global markets. He spoke during a meeting with voters in the town of Jaslo. 

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