WOOD Flash - Polish strategy: 50-70% electricity price hike in Poland – potential impact on Polish companies
Yesterday, the Parkiet and Rzeczpospolita dailies reported that Polish industry could suffer from electricity price hikes of as much as 50-70% in 2019E, based on the price-list proposals from the power groups and industry representatives. Parkiet quoted Michal Suska, CEO of the Energomix consulting firm and a Business Centre Club expert, who noted that the cost for a large company (i.e. consuming more than 20 GWh per year) stood at PLN 205-210/MWh in 2017. In 2019E, the price lists indicate costs of at least PLN 340-350/MWh.We have discussed the exposure to the potential tariffs hikes with certain industrial names from our coverage. In the table below, we present our estimates for the potential impact of an assumed 50% 2019E electricity price hike on our forecasts for the 2019E EBITDA of selected Polish companies.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
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