Polish Briefing 5 May, 2020 9:00 am   
COMMENTS: Mateusz Gibała

Polish Briefing: PKN Orlen about to close the largest transaction on Poland’s energy market

What goes on in Poland on the 5th of May.

Tauron will delay the start-up of the new Jaworzno Power Plant block, but will make it for the capacity market

The commissioning of the new 910 MW hard coal block at the Jaworzno III power plant was postponed until November 15 – Tauron said, who concluded an agreement on this matter with the contractor – the Rafako-Mostostal Warszawa consortium.

Tauron explained that during the trial run of the block one of the boiler components was damaged. A special commission determined that the cause of the failure was an unfavorable pattern of phenomena during start-up. Each of these phenomena, occurring individually, could not lead to a failure – emphasizes Tauron. – The emergency commission agreed on a way to repair damaged boiler components, which will avoid similar failures in the future.

PKN Orlen about to close the largest transaction on Poland’s energy market

​Within no more than four months PKN ORLEN fulfilled all conditions precedent to the acquisition of the ENERGA Group, including reaching the threshold of 66% of shares covered by the tender offer. The price was eventually set at PLN 8.35 per share. The share acquisition process by PKN ORLEN has begun today. It is an important component of PKN ORLEN’s strategy to create a strong multi-utility group which will strengthen the competitive and financial position of both companies, improve Poland’s energy security, and in particular stimulate the Polish economy.

“PKN ORLEN views the acquisition of the ENERGA Group as a strategic and long-term investment. By combining the potentials of the ORLEN Group and ENERGA we are creating a business with a high investment capacity. Our strength will support the Polish economy, which in these difficult times needs an additional impetus to return to the condition from before the coronavirus epidemic,” says Daniel Obajtek, CEO and President of the PKN ORLEN Management Board. By taking over the ENERGA Group, ORLEN is taking a major step towards becoming a multi-utility. We are diversifying our business and building international presence. In the first place, we seek to generate positive effects for the two companies and to support the entire industry in the face of the challenges it is facing. Many European energy companies have already completed their consolidation processes,” adds Mr Obajtek.