Poland's PGE resumes dividends, cuts investment target under 2035 strategy

Oct 19 (Reuters) - Poland's biggest power producer PGE PGE.WA plans to resume dividend payments under an updated strategy, which also cuts its 2025-2035 investment target to about 210 billion zlotys ($54 billion) from a previously planned 235 billion zlotys.

The utility has not paid a dividend since 2016, having suspended payments to fund its investment programme. It now joins Polish peers Tauron TPE.WA and Enea ENAE.WA which also resumed dividends recently after years-long pauses.

• Dividend yield capped at 5% for the first payout in 2027 from 2026 profit

• Renewables and storage take the biggest share of investment cuts, with their combined allocation falling by 19 billion zlotys despite unchanged output targets

• PGE targets cumulative EBITDA of about 209 billion zlotys over 2025-2035, with annual EBITDA of about 15 billion in 2030 and more than 30 billion in 2035

• It plans three data centres developed through partnerships, with 6 billion zlotys earmarked for customer energy solutions including AI campuses and industrial zones

• The coal unit is expected to post an EBITDA loss of 3.3 billion zlotys in 2030 and a loss of 1.5 billion zlotys in 2035

($1 = 3.8978 zlotys)