PGE: Impairments to cut group’s EBITDA by PLN 700M

PGE: Impairments to cut group’s EBITDA by PLN 700M

PGE: Impairments to Cut Group’s EBITDA by PLN 700M

Polska Grupa Energetyczna (PGE) reported significant impairment charges in Q2 2025, which reduced its net income but had a limited impact on EBITDA, according to its Q2 and H1 2025 financial results. The Polish energy company recorded a reported EBITDA of 3,336 million PLN for the quarter, with recurring EBITDA at 3,269 million PLN—a 24% margin. However, impairments led to a reported EBIT of -6,782 million PLN and a net loss of 9,606 million PLN. Excluding impairments, the adjusted net loss narrowed to 606 million PLN.

For the first half of 2025, PGE’s EBITDA totaled 7,646 million PLN (reported) and 7,603 million PLN (recurring), maintaining a 25% margin. Despite operational strength, H1 reported a net loss of 7,190 million PLN, though excluding impairments, the company would have posted a net profit of 1,827 million PLN.

The impairment charges primarily stemmed from asset write-downs tied to PGE’s ongoing energy transition strategy, which prioritizes gas-fired generation and renewables over coal. The Coal Energy segment contributed just 5% of recurring EBITDA in H1 2025, while Distribution (35%), Supply (16%), and Renewables (13%) drove earnings.

PGE’s capital expenditures in H1 2025 reached 4.9 billion PLN, with 70% allocated to new projects, including combined-cycle gas turbine (CCGT) units in Rybnik and Siechnice. The company also invested 784 million PLN in modernizing distribution assets.

Despite challenges, PGE’s financial position remains robust, with a negative net debt of 992 million PLN and strong operating cash flows. The company emphasized its commitment to transitioning to cleaner energy sources while managing regulatory and market risks.

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