Czech energy group ČEZ's net profit fell 43% year on year to CZK 29.8 billion in the first three quarters

Energy group ČEZ earned CZK 29.8 billion in the first three quarters of this year, with the company's net profit down 43 percent year on year. The main reason for the decline was the windfall tax introduced this year, which added CZK 21 billion to costs. The group's operating profit (EBITDA), by contrast, rose six percent to CZK 95 billion, driven by high market commodity prices. The figures were published by the company today.

The group also confirmed its full-year financial outlook, which forecasts an adjusted net profit of CZK 33–37 billion for 2023. The company raised its full-year EBITDA outlook to CZK 115–120 billion, up from its previous forecast of CZK 105–115 billion.

„Our results for the first three quarters reflect the gradual stabilisation of energy markets. Following approval of a record dividend of CZK 145 per share, and in view of the exceptional taxes on the revenues and profits of energy companies, we expect the ČEZ Group to contribute CZK 118–125 billion to the Czech state this year through dividends, profit taxes and levies on excess revenues from power generation,“ said ČEZ Chief Executive Daniel Beneš.

The company said several factors had affected its financial results and the year-on-year comparison. Revenue was affected by last year's extreme swings in commodity prices and the subsequent introduction of levies on excess revenues from generation, which have so far cost the company CZK 8.7 billion. The windfall tax amounted to CZK 21 billion. According to ČEZ Chief Financial Officer Martin Novák, the company is expected to pay around CZK 37–45 billion in these levies for the full year.

According to ČEZ statistics, electricity generation from emissions-intensive coal and gas-fired sources has declined steadily over the year, falling 18 percent year on year to 12 terawatt-hours (TWh). The main reasons are lower market electricity prices and movements in the prices of emissions allowances and natural gas. Coal's share of generation so far this year is 28 percent, compared with around 80 percent in the early 1990s. Nuclear power generation also fell one percent year on year because of longer planned outages at both plants. Favourable weather conditions, by contrast, lifted renewable generation by seven percent.

Electricity consumption in ČEZ Distribuce's distribution area fell four percent year on year to 24.8 TWh. Consumption by large businesses fell three percent, by households five percent and by small businesses six percent. The company said the decline was mainly due to customers reducing consumption in response to high commodity prices, as well as warm weather.

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 Ministry of Finance. The group posted a record profit of CZK 78.4 billion last year. In June this year, the company's general meeting approved a dividend of CZK 145 per share. The state received CZK 54 billion.

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