ČEZ raises net profit by a quarter, helped by end of Czech windfall tax

Energy group ČEZ earned 26.6 billion crowns in the first nine months of this year. The company’s net profit thus rose 24 percent year on year. This was mainly due to the end of the windfall tax on extraordinary profits. Net profit adjusted for one-off items, which is key for the dividend, also increased. By contrast, the company’s operating profit fell year on year. This is according to figures published by ČEZ today. The company’s management also raised its full-year earnings outlook, now expecting net profit of 34 to 37 billion Kč.

The company said the higher net profit forecast was primarily due to the recent sale of its 49 percent stake in Slovak company JESS for 189 million euros (4.6 billion Kč). The sale will be reflected in the financial results only in the fourth quarter, when it will increase net profit by 2.2 billion crowns.

The group’s net profit adjusted for one-off items rose 19 percent year on year to 26.3 billion crowns.