Křetínský's Czech holding EPH raised operating profit to 90.7 billion crowns last year

Daniel Křetínský's Energy and Industrial Holding (EPH) recorded operating profit (EBITDA) of 3.7 billion euros (roughly CZK 90.7 billion) last year. This was up year on year from 2.6 billion euros (more than CZK 63.7 billion) the year before. The group's stronger position last year reflected the acquisition of Slovenské elektrárne, an agreement with TotalEnergies SE to establish a joint venture, and the construction of new power plants. EPH spokesperson Daniel Častvaj told the Czech News Agency (ČTK).

EPH CEO and Vice Chairman of the Board Jan Špringl described last year as a landmark year. "We increased total electricity generation to 51 terawatt-hours (TWh). We also strengthened our position in Slovakia by completing the acquisition of the remaining stake in Slovenské elektrárne and signed binding agreements to establish a landmark 50:50 partnership with TotalEnergies, with the aim of creating one of Europe's leading platforms for flexible power generation," he said. "These steps strengthen EPH's ability to invest in reliable, flexible and low-carbon capacity while maintaining financial strength and discipline," he added.

Last November, EPH agreed with TotalEnergies SE to establish a joint venture focused on flexible power generation in Italy, the Netherlands, Britain, Ireland and potentially France. EPH will give TotalEnergies a 50% stake in the newly formed venture. EPH will contribute its flexible generation assets and development projects to the joint venture. In return, EPH will receive a 4.2% stake in TotalEnergies SE.

Among other things, the holding continued construction of the fourth unit at the Mochovce nuclear power plant last year, pursued hydrogen-ready combined-cycle power plant projects in Italy, and expanded its portfolio of battery storage facilities. In May, the group also completed its acquisition of the remaining stake in Slovenské elektrárne and became the sole owner of Slovak Power Holding, which holds a 66% stake in Slovakia's largest electricity producer.

Last year, EPH operated generation assets with a net installed capacity of 16.7 GW, up 2.1 GW year on year. The group generated 51 TWh of electricity, compared with 32 TWh the year before. It also increased gas supplies to customers to 49.1 TWh and electricity supplies to 6.4 TWh. The group also operated gas storage facilities with a total capacity of more than 64.4 TWh.

The group's net financial debt stood at 5.6 billion euros (more than CZK 137.3 billion) at the end of last year, an increase of 1.2 billion euros (CZK 29.4 billion) from the year before. The company's net debt was therefore 1.5 times EBITDA, down from 1.7 times a year earlier. EPH also generated free cash flow of 2.2 billion euros (CZK 53.9 billion) last year, compared with around 1.4 billion euros (CZK 34.3 billion) the year before.

The EPH group comprises around 70 companies across Europe. Křetínský, one of the wealthiest Czech nationals, is the group's majority owner. Its parent company is EP Group, which includes, alongside the energy business, the media group Czech Media Invest (CMI) and EC Investments, among others. Křetínský owns 89.3% of EP Group's shares, with the remaining 10.7% owned by a group of EPH managers.