Polish Briefing 16 April, 2020 9:00 am   
COMMENTS: Mateusz Gibała

Polish Briefing: PKN Orlen will pay more for Energa shares

What goes on in Poland on the 16th of April.

PKN Orlen will pay more for Energa shares

PKN Orlen increased the price of one Energa share to PLN 8.35 in the tender offer for the sale of 100 percent of the Group’s securities. It was originally set at PLN 7. PKN Orlen emphasizes that the current, increased price will be paid for all shares of the Energa Group subscribed for throughout the entire call, i.e. from 31 January to 22 April 2020. – We are consistently implementing our strategic goal, which is to create an integrated multi-utility group created as a result of the merger with Energa and Grupa Lotos. It will be able to operate more efficiently on the increasingly competitive fuel and energy market, while also allowing the combined business to resist risks and market fluctuations. This is especially important now. The Polish economy must quickly deal with the economic effects of the coronavirus epidemic. Companies such as PKN Orlen with strong foundations and focusing on dynamic development will be a strong support for it – said PKN Orlen CEO Daniel Obajtek.

Polish distribution companies might get coronavirus help

According to the president of the Polish Association of Transmission and Distribution of Electricity (PTPiREE) Robert Zasina, companies responsible for the continuity of energy supply should be strengthened. – Expecting post-coronavirus economic turbulence, we should support large enterprises to give impetus to the development of small and medium-sized enterprises. In addition, ensuring funds for the stable functioning of distribution companies is particularly important in the current situation in which electricity supply is an element of stabilization of social and economic life – explains the head of PTPiREE, and also the president of Tauron Dystrybucja, in a commentary for

IEA: The oil price crisis cannot be overcome quickly. The new oil agreement is a good start

The April International Energy Agency report on oil market predicts a record drop in global demand for this raw material due to a coronavirus pandemic. According to the IEA, a short-term record drop in demand cannot be fought, but the new oil agreement is a “good start”. Measures to contain the pandemic lead to social isolation, which is expected to bring a record drop in oil demand by 9.3 million barrels per day in 2020 compared to the previous one. Oil demand in April is expected to fall by 29 million barrels a day year-on-year and reach its lowest level since 1995. It is expected to fall by 26 million barrels a day in May and by 15 million barrels a day in June. Demand in the second quarter of 2020 is to be lower by 23.1 million barrels per day compared to the same period a year earlier. The demand will increase again. In December 2020, it is still to be lower by 2.7 million barrels compared to the last month of 2019.