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Poland’s PGNiG expected to favour treasury in planned share buy-back

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LNG Industry,

According to Reuters, it is expected that PGNiG – the Polish state-run oil and gas company – will favour the treasury in its planned 750 million zlotys (US$195 million) share buy-back. Analysts and fund managers have reportedly said that this will disadvantage minority stakeholders.

In July 2016, PGNiG announced its plans to complete the buy-back by the end of 2016. The company did not offer any more details on the matter, but claimed that it would do so at a later date. Analysts expect that the buy-back will be designed to help towards filling the state’s coffers.

Reuters reports that, with the company’s shares up by 1% at 5.38 zlotys by 1149 GMT, PGNiG could purchase almost 140 million of its shares, or approximately 2% of the capital for 750 million zlotys. This would not be a great reduction in Poland’s stake in the company, which the state considers important for securing energy supplies.

At the annual meeting in June 2016, shareholders in the company reportedly approved a dividend pay-out of 0.18 zlotys per share, which works out at 1.06 billion zlotys overall. By the end of that month, the treasury’s dividend revenues were 106 million zlotys. This was compared to the target for 2016 of 3 billion zlotys, which had already been trimmed.

Reuters claims that, so far in 2016, shares in the company are up by 3.5%.

Edited from various sources by David Rowlands

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