Polish utilities slide on fear of 'convenient' sector-wide dividend cuts

About this update from Pt Pertamina Geothermal Energy Tbk

** Shares in Polish state-owned utilities PGE GPW:PGE, Enea GPW:ENA and Tauron GPW:TPE slide amid fears of dividend cancellations across the sector** The sell-off was triggered after PGE, Poland's largest utility, announced a nearly 11 billion euros ($12.83 billion) impairment on its conventional energy assets** Robert Maj from Ipopema suggested the writedown provides a pretext for suspending dividend payouts** "The large net loss will be a convenient explanation for not paying dividends", Maj says ** He also notes the news reminded investors of Tauron's strategy, which sets the earliest dividend payout for 2029** The broad negative sentiment has dragged Poland's WIG-Energy GPW:GPW stock index down by as much as 3.2%** By 11:04 GMT PGE is down 4.5%, Tauron slips 3.2% and Enea is down 2.5%($1 = 0.8571 euros)

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