PKN Orlen Bets Dividends on Shale

CEO of PKN Orlen Jacek Krawiec has today told a meeting of shareholders that the company cannot pay out dividends due this year owing to its investment in shale gas.

Speaking at a general meeting today, Mr. Krawiec said that the company temporarily could not afford to pay the dividend but said that it would in the future.

"In the light of investment challenges mainly in the energy sector and in the shale gas field, the company cannot afford to pay out a dividend yet," he said.

"Soon we will update our strategy, following the summer holidays, and will address our dividend policy therein. Soon the company will provide a dividend."

The statement came in response to a legal challenge by 5 per cent shareholder ING OFE, which filed a motion against the company to force it to pay out dividends from profits in 2011. If the motion is successful, PKN would need to pay out 641.56 million zlotys, or around €146.15 million.

PKN Orlen is just one of several Polish companies heavily involved in shale in response to a government drive towards the resource, with a total of six vertical wells and two horizontal wells planned for this year.