Polish utility PGE Q1 core profit jumps on lower CO2 emission costs

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Poland's biggest energy utility PGE GPW:PGE reported a first-quarter recurring core profit of 4.33 billion zlotys ($1.16 billion) on Tuesday, up 71% on the year, primarily due to lower CO2 emission costs and regulatory revenue gains.The results were in line with the company's preliminary estimates reported in mid-May.WHY IT'S IMPORTANTPGE, like other Polish utilities, is navigating structural shifts in the country's energy landscape as growing renewable adoption slowly diminishes coal's longstanding dominance.Coal's share in Poland's electricity production fell to 57.1% in 2024, while renewable energy sources reached a record 29.6% of the country's total electricity generation, according to Forum Energii think-tank data.CONTEXTThe company's core profit rise was mainly driven by lower CO2 emission costs, and higher government-regulated payments for grid stabilization services and capacity mechanisms. Improved results from electricity sales to end customers and higher revenue from heat sales also contributed positively to the result.BY THE NUMBERSPGE's net profit for the first quarter rose over 170% to 2.42 billion zlotys. Sales revenue rose around 2% to 17.17 billion zlotys from 16.84 billion zlotys a year ago.The company's cost of goods sold reached 13.34 billion zlotys in the quarter, down 11% from 15.05 billion zlotys in the first quarter of 2024. ($1 = 3.7484 zlotys)

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