Poland's largest power firm to sell off non-core assets

This would be part of a divestment plan designed to deal with rising CO2 emission costs and tough competition, Chief Executive Marek Woszczyk said on Wednesday.

The state-run group posted a net loss of PLN 5.06 billion (USD 1.3 billion) in the first half of 2015 because of a record PLN 8.8 billion impairment charge related to its lignite coal assets.

PGE will consider selling other non-core assets that include combined heat and power generation assets.

Woszczyk said it is very preliminary communication and that no conclusions should be drawn and added that further analysis was necessary.

PGE is the owner of telecom operator Exatel.

PGE will review its strategy, and will present the results of these works before the end of the year. Among the group’s priorities is accelerated diversification of its generation portfolio, he also confirmed.

PGE, in which the Polish Treasury has a 58.39 percent share, has a market capitalization of PLN 28.36bn (USD 7.53bn). (jh)

Source: Puls Biznesu