Czech utility ČEZ cut first-half net profit by five percent year on year to CZK 21.1bn

Energy group ČEZ earned CZK 21.1 billion in the first half of this year. The group's net profit thus fell by five percent year on year. The decline was mainly due to lower profits from commodity trading and the impact of differing schedules for nuclear plant outages. The company's operating profit, by contrast, increased. This follows from figures released by the company today. ČEZ also confirmed its expectation of a full-year 2024 net profit of CZK 25–30 billion.

The company raised its original forecast for earnings before interest, taxes, depreciation and amortisation (EBITDA), which amounted to CZK 69.2 billion in the first half. This represents a year-on-year increase of CZK 6.8 billion. The result mainly reflected the end of the obligation to pay levies on excess revenues from electricity generation in the Czech Republic, which added CZK 11.1 billion to the company's costs in the first half of last year. The group's management now expects full-year operating profit of CZK 118–122 billion. Its original estimates at the start of this year were CZK 115–120 billion.

„The ČEZ Group's results for the first half of the year slightly exceeded our initial expectations, mainly thanks to higher profits from commodity trading, favourable market conditions for power plant operations and continued stabilisation in energy markets. We have therefore raised our full-year forecast for earnings before interest, taxes, depreciation and amortisation,“ said ČEZ Chairman of the Board and CEO Daniel Beneš.

The partly state-owned group also increased its investment in the first half of the year. So far this year, it has invested CZK 20.5 billion in acquiring fixed assets, CZK 3.6 billion more year on year. According to the company, investment in distribution networks is growing particularly strongly, mainly in connection with connecting renewable energy sources. Investment in nuclear power and new renewable generation capacity is also increasing.

ČEZ's electricity generation from renewable and nuclear sources fell by four percent year on year. While renewable sources generated 0.1 terawatt-hours (TWh) more electricity, mainly thanks to above-average hydrological conditions, nuclear generation fell by 0.7 TWh due to differing schedules for planned outages and the availability of nuclear power plants. Generation from emissions-intensive sources remained unchanged. Electricity consumption in the ČEZ Distribuce distribution area fell by two percent year on year to 17 TWh, mainly due to warm weather.

ČEZ Group is one of the largest energy companies in Czechia. The state is its majority shareholder, holding around 70 percent of the shares through the Ministry of Finance. Last year, it earned CZK 29.6 billion, meaning the company's net profit fell by more than 63 percent year on year. The main reason was extraordinary taxes and levies, on which the company paid around CZK 40 billion.