In October 2016, we paid out a dividend from the 2015 profit, which as per a decision by the Ordinary General Meeting was PLN 467 440 207.25, i.e. PLN 0.25 per share.

Many investors pay attention to dividends.  From the date of its IPO to 2016, PGE Polska Grupa Energetyczna was a classic dividend company. 

Amount of dividend and consolidated earnings per share.

Dividend paid out in 2016

Dividend is paid out of net profit generated in the preceding year. In October 2016, we paid out a dividend from the 2015 profit, which as per a decision by the Ordinary General Meeting was PLN 467 440 207.25, i.e. PLN 0.25 per share. The Company's Management Board proposed to allocate PLN 0.92 per share from the 2015 to dividend, whilst in the course of the Ordinary General Meeting the main shareholder, the State Treasury, submitted a motion to set the dividend at PLN 0.25 per share. The motion was motivated by the Company's strategic development investments and a modernisation and replacement investment programme of a significant value.

Allocation of 2016 net profit

In May 2017, the Company's Management Board decided to change the dividend policy. Recognising the need to finance an ambitious growth programme and wishing to slow down debt growth, the Company's Management Board recommended suspending dividend payouts from profit in 2016, 2017 and 2018.

This was not an easy decision. Although we believe it was a correct one. Investment processes in the energy sector are characterised by cyclicality.  We expect to see positive cash flows once on-going mega investments are completed. Prior to that, at the construction stage, these investments require financial outlays.

The funds that we are committing to these investments are from both our operating activities as well as credit facilities and issued bonds. The decision to suspend dividend payments lowers demand for debt financing. The Management’s task is to balance different categories of investors, including debt investors - thus taking care of maintaining the Group's debt at a moderate level, adequate to the enterprise's capabilities.

The new dividend policy states that after 2018 the Management Board intends to recommend dividend payments to shareholders at a level of 40-50% of consolidated net profit attributable to shareholders of the parent, adjusted by impairment of property, plant and equipment and intangible assets.