Czech energy group ČEZ's net profit rose by a quarter year on year to CZK 13.6 billion in the first quarter

Energy company ČEZ reported a year-on-year increase of a quarter in net profit to CZK 13.6 billion in the first quarter of this year. Operating revenue, by contrast, fell by six percent to CZK 87.4 billion. The company today published its unaudited consolidated results on its website. It also confirmed its outlook for the full year, unchanged from the initial forecast published in March. It expects full-year earnings before interest, taxes, depreciation and amortisation (EBITDA) of CZK 115 billion to CZK 120 billion and net profit adjusted for extraordinary effects of CZK 25 billion to CZK 30 billion.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) reached CZK 40.3 billion in the first quarter, up CZK 7.8 billion year on year. The company said the year-on-year comparison was affected by levies on excess revenues from generation, which added CZK 10 billion to costs last year. The main negative factor was a decline in the electricity generation margin, reflecting lower realised electricity prices and higher purchase prices for emissions allowances, ČEZ said.

„The ČEZ Group’s first-quarter financial results are in line with our expectations and reflect the gradual stabilisation of energy markets. Price stabilisation is also evidenced by the fact that we repaid the final billion euros at the beginning of April under a specific loan agreement with the Czech state, which provided us with a total of three billion euros in 2022 to cover extraordinary margining requirements, i.e. the obligation to provide substantial funds to secure trades in energy commodities,“ said ČEZ Chairman of the Board and CEO Daniel Beneš.

ČEZ’s total electricity generation fell by three percent year on year to 13.7 terawatt-hours (TWh) in the first quarter. Generation from renewable and nuclear sources declined by three percent to 9.1 TWh, while output from coal-fired and combined-cycle gas power plants fell by two percent to 4.6 TWh.

Electricity consumption in the distribution area of ČEZ Distribuce was one percent lower year on year in the first quarter of this year, reaching 9.3 TWh. Household consumption fell by two percent, due, according to the company, to warm weather in the first quarter of this year. „Electricity consumption adjusted for weather and calendar effects rose by one percent year on year to 9.8 TWh overall,“ ČEZ said.

The company has not yet announced its proposed dividend for shareholders from last year’s profit, which amounted to CZK 29.6 billion, down 63 percent year on year. In an April presentation for investors, ČEZ said a dividend of CZK 39 to CZK 52 per share could be expected, corresponding to a payout ratio of 60 to 80 percent of adjusted net profit. For 2022, ČEZ paid CZK 145 per share, nearly all of its CZK 78 billion profit, after shareholders approved the Finance Ministry’s proposal at the general meeting. ČEZ’s board had proposed a dividend of CZK 117 per share, or 80 percent of profit.

ČEZ is one of the largest energy companies in Czechia. The state is its majority shareholder, holding around 70 percent of the shares through the Finance Ministry.

fsl mha ptd