Czech utility PRE's net profit fell 6.5 percent to CZK 3.12 billion last year

Energy group Pražská energetika (PRE) reported a 6.5 percent year-on-year drop in net profit last year to CZK 3.12 billion. Revenue, by contrast, rose 26.5 percent to almost CZK 48.2 billion. This is according to the annual report by Pražská energetika (PRE), highlighted today by Ekonomický deník. The company attributed the drop in profit to a higher tax burden resulting from changes to tax regulations.

PRE Group's earnings before interest, taxes, depreciation and amortization (EBITDA) rose last year to CZK 6.87 billion, up 18 percent from 2022. “One notable point is that pre-tax profit increased by CZK 1 billion year on year to CZK 5.1 billion. However, PRE was affected by the government's decision to tax the extraordinary profits of companies operating in the energy sector. Instead of the CZK 1 billion it would have paid at the 19 percent tax rate, PRE Group paid almost CZK 2 billion in income tax,” Ekonomický deník reported.

Weather conditions, high energy supply prices and energy-saving measures also led to a year-on-year decline in supply volumes. PRE's electricity supply volume fell 4.2 percent year on year to 6.12 terawatt-hours (TWh), while gas supplies dropped 14 percent to 0.85 TWh. The volume of electricity distributed in Prague fell 2.4 percent to 5.86 TWh.

PRE Group's core activities include the sale and trading of electricity and gas. With more than 838,000 customer points, it is the third-largest electricity supplier in Czechia. More than 58 percent of the company is owned by Pražská energetika Holding, whose majority owner is the City of Prague. Another major shareholder is Germany's EnBW Energie Baden-Württemberg, which owns 41.4 percent.