Czech utility CEZ's annual meeting to decide on dividend today; management proposed CZK 47 per share

The annual general meeting of energy company CEZ will decide today on the payment of a dividend from the company's adjusted profit for last year. In the spring, the company's board proposed paying out 80 percent of profit, equivalent to CZK 47 per share and a total dividend of CZK 25.3 billion. If CEZ's proposal is approved, the state, as majority shareholder, would receive more than CZK 17.6 billion. The final decision will rest with the annual general meeting. In addition to the dividend, it will follow its standard agenda, including consideration of the company's financial performance.

Last year, CEZ paid a dividend of CZK 52 per share from adjusted profit. In total, it distributed CZK 28 billion among shareholders, of which the state received more than CZK 19 billion.

This year's board proposal is at the upper end of CEZ's current dividend payout ratio, which stands at 60 to 80 percent of adjusted profit. The management of the energy group proposed the same payout ratio in each of the previous two years. While the board's proposal was approved last year, in 2023 shareholders approved a counterproposal from the Ministry of Finance to pay out 100 percent of adjusted profit. This year, the Ministry of Finance, which represents the state as a shareholder, has not commented on the dividend proposal. It is no longer possible to submit a counterproposal on the dividend once the annual general meeting is underway.

In addition to distributing last year's profit, the annual general meeting will discuss standard items listed in the official notice, such as approval of the financial statements and a decision on the amount of money allocated for donations.

The CEZ energy group earned CZK 30.5 billion last year. The company's net profit rose by almost three percent year on year. EBITDA also increased, while the company's profit adjusted for extraordinary items, which determines the dividend, fell year on year. Last year, it came to CZK 31.8 billion, down CZK 3 billion from the previous year.

The CEZ 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.