PKP Cargo shareholders have approved a significant reduction in the company’s share capital, lowering the nominal value of shares from PLN 50 (€11.6) to PLN 1 (€0.23). As a result, the company’s share capital fell from PLN 2.24bn (€521m) to PLN 44.8m (€10.4m).
The capital reduction released approximately PLN 2.2bn (€512m), which will be used to cover part of the company’s net loss from the previous financial year. PKP Cargo closed 2024 with a net loss of PLN 2.412bn (€561m). Following restructuring measures, this loss was reduced to PLN 218m (€50.7m), with the remaining amount to be covered from the company’s reserve capital.
Management cited difficult market conditions as the main reason for the decision. With a nominal share value of PLN 50 (€11.6) and a stock market price fluctuating around PLN 16 (€3.7), the company said it was unable to attract external investors or secure new financing needed to continue operations under the previous capital structure.
The move also aligns with recommendations addressed to companies controlled by the Polish State Treasury, which have called for balance-sheet restructuring in response to sustained losses and deteriorating market conditions.
PKP Cargo has been under pressure from declining rail freight volumes, rising operating costs and increased competition from road transport. The capital adjustment is intended to stabilise the company’s financial position as it continues its broader restructuring programme.