Financial Sector Analysis of Companies in the Energy Industry Listed on the Warsaw Stock Exchange

Abstract

In times of the pandemic and the beginning of the energy crisis, the financial situation of enterprises operating in the energy generation sector may be a problem. This sector includes companies that generate energy in different ways and from different sources. The aim of this study is to determine the general financial situation of enterprises in the energy sector listed on the Warsaw Stock Exchange. The subject of the paper are the annual financial reports of these entities for the years 2015–2021. Tree hypotheses were formulated regarding various aspects of the financial situation of the entities under study. The following research methods were used in this paper: analysis of the literature on the subject and financial statements, and methods of descriptive statistics. The indicators of liquidity, profitability, debt and activity were calculated. The values of the maximum, minimum, median, upper and lower quartiles, the arithmetic mean, kurtosis and skewness were then calculated for each indicator. The increase in energy prices was influenced by the high rate of economic growth and the so-called post-epidemic inflation. This, in turn, was reflected in the performance of companies in the energy sector, resulting in increased profitability. The research carried out by the authors confirmed that the sector financial indicators of energy enterprises with a dominant share of private capital are concentrated closer to the average value than enterprises with a dominant share of the State Treasury. The financial situation of coal power engineering companies is more stable than that of renewable energy companies.

Keywords

• Polish energy sector
• financial sector analysis
• Warsaw Stock Exchange