The Management Board of PGE Polska Grupa Energetyczna has decided to terminate projects and programmes planned for the years 2020-2030 that do not bring expected benefits for the PGE Group. The total value of these undertakings exceeds the amount of PLN 1 billion.
As announced by the Management Board of PGE, the need to take optimization and rationalization measures in the PGE Capital Group companies as a result of the conducted analysis of projects and programmes in terms of their effectiveness, rate of return and connection with the core business, as well as the recommendations of the PGE Investment, Teleinformatics, Business Development and Innovation Committees, the Management Board has decided to close a number projects and programmes totalling over PLN 1 billion. Planned expenses for these projects in 2020 amount to nearly PLN 200 million, accumulated savings due to their termination will amount to over PLN 1 billion over the next 5 years.
Based on a comprehensive analysis, the PGE Management Board has decided to close or limit the scope of tasks, projects and programmes in the areas of Research and Development, ICT and investments, for a total amount of over PLN 1 billion. This decision is related to the PGE Management Board’s consistently implemented policy aimed at rearranging the Group's operations and focusing its activity on the core business and key profitable projects, said Wojciech Dąbrowski, Management Board President of PGE Polska Grupa Energetyczna. We had developed plans to optimize and rationalize the Group’s operations before the outbreak of the COVID-19 pandemic, knowing the financial results of the PGE Group for 2019, but now, in the face of these circumstances, the necessity to manage our resources carefully is even more pressing. We have decided to accumulate cash and in the future, once the economic situation has stabilized, to invest it wisely with a view to increasing our competitive advantage. The goal is to maintain our leading position in the market, also through mergers and acquisitions, which requires funds, as well as through investments in ambitious development projects, which will allow us to move in the green direction, added Mr Dąbrowski.
Last week, the PGE Group announced a 50% reduction of its involvement in sponsorship projects. Analytical work on a number of projects and tasks being or to be carried out in the PGE Group is still underway in terms of their effectiveness, rate of return and connection with the core business. The company will provide information on the results of this work on an ongoing basis.