Tauron's net profit for the full year fell 48% due to a drop in revenues

The Polish utility Tauron reported a 48% drop in its net profit for the full year, due mainly to lower revenue from electricity sales.

The preliminary figures for March were a little lower than the results of the company.

Why it's important

Tauron is Poland's second largest power utility based on market value. Its coal-fired fleet has been losing money, and the company faces pressure from a shift towards renewable energy.

According to the energy think tank Forum Energii the coal use in the country has decreased as it works to reduce its dependency. Coal will account for about 57.1% (or 57.1%) of the nation's electric generation by 2024.

By the Numbers

In 2024, the company's net income was 585 million zlotys (about $154.6 million), down from a profit of 1.12 billion in 2018.

The lower electricity sales caused a 22% drop in revenue. Tauron retail electricity sales fell to 26.7 Terawatt Hours from 30.75TWh in 2023.

CONTEXT

Tauron announced a new strategy in December, aiming to resume dividend payments by 2029. The company also plans to invest 100 billion zlotys (roughly $1.25 billion) between 2035 and 2035. This will be done with an emphasis on modernizing the distribution infrastructure and expanding alternative energy sources.

The company intends to decommission its coal-fired plants by 2030. This is in line with Poland's effort to reduce carbon emissions and move to cleaner energy.

(source: Reuters)