Energa power's new strategy may not include dividend policy

Poland's largest energy concern Orlen's subsidiary power utility Energa Group is not planning to pay an advance dividend, the group's management board told a press conference. The management board wants to decide on sharing the profits each time after the finished fiscal year, especially considering the group's current investing needs, with the new strategy may not be having a dividend policy.

"We will certainly not pay the advance dividend (...). When it comes to the general direction of the dividend policy (...), if we were to look at our strategy than we will find a statement that the dividend will not be paid with the profits being earmarked for investments," Slawomir Staszak, Energa's acting CEO said.

"We are in the middle of building a new strategy, and I wouldn't want to say that the dividend policy will be featured in any shape or form. I think the management board should decide what to dedicate the profit for, at the end of every fiscal year, after analysing the financial report," he added.

Staszak stated that even if the whole profit was earmarked for investments, it would still not be nearly enough to operate them.

"I want to wait until the end of the fiscal year and analysing the fiscal report before saying whether the management board will recommend earmarking a part of the profit for dividend payment," he said.

Energa's general assembly decided to earmark the group's total 2023 profit amounting to PLN 37.6 million for capital reserve.

The group informed before that keeping the profit within the company is necessary for reaching goals set in the strategic growth plan of the group for years 2024 to 2030, and for realisation of investments described in the group's multi-year strategic investments plan for years 2024 to 2030.

doa/ mik/ nl/