Energa SA, a prominent player in the Polish energy sector, has made a significant financial decision that will shape its future growth. On April 30, 2025, the company’s Management Board recommended allocating its entire net profit for 2024, amounting to 306.12 million PLN, to bolster its reserve capital. This decision will come with the consequence of not distributing any dividends to shareholders.
The Energa Group stands as the third-largest distribution system operator in Poland, supplying energy and selling electricity to end consumers. With a total installed generation capacity of approximately 1.34 gigawatts (GW), the company plays a crucial role in the national energy landscape. Energa is also listed on the Warsaw Stock Exchange (GPW), and since 2020, 90.92% of its shares have been owned by the Orlen capital group, which corresponds to 93.28% of the total voting rights at the general meeting.
The decision to retain profits is not merely a financial maneuver; it is intricately tied to the company’s strategic objectives. According to Energa, this retention is essential for fulfilling the goals outlined in its "Strategic Development Plan for the Energa Group for 2024-2030" (SDP) and for executing the investments detailed in its "Long-Term Strategic Investment Plan for the Energa Group for 2024-2030" (LTSIP).
As part of its ambitious plans, Energa intends to invest significantly in the construction of combined cycle gas turbine (CCGT) power plants in Ostrołęka and Grudziądz, as well as in new renewable energy sources (RES). The total investment outlay projected for 2024 to 2030 is approximately 47.9 billion PLN. These investments are deemed necessary to adapt to the evolving market and regulatory environment and to strengthen Energa's market position.
To effectively implement this investment strategy, Energa has entered into agreements with its strategic shareholder, ORLEN S.A. These agreements focus on financing projects that include the construction of gas-steam power stations and the development or acquisition of renewable energy projects.
Retaining the net profit for 2024 will also help the company maintain the cost-effectiveness of debt servicing and ensure a safe level of debt ratios. This is critical not only for the current financial landscape but also for future financial resource demands. By increasing its supplementary capital, Energa aims to reduce its reliance on external financing.
According to the Management Board, the planned investments are expected to yield measurable results, particularly in enhancing the company's earnings before interest, taxes, depreciation, and amortization (EBITDA). They project that achieving the goals set forth in the LTSIP will lead to a significant increase in consolidated EBITDA by 2030 compared to 2024.
As Energa moves forward with its plans, the company emphasizes that these strategic decisions are designed to deliver tangible benefits to its shareholders through an increase in the company's overall value. By focusing on long-term growth and sustainability, Energa is positioning itself to meet both current and future energy demands in Poland.
In summary, the decision to allocate the entire net profit for 2024 to reserve capital rather than dividends reflects Energa's commitment to its strategic growth plans. With significant investments on the horizon, the company is poised to adapt to the changing energy landscape while providing value to its shareholders in the long run.
