Czech energy group ČEZ cut first-quarter net profit by six percent to 12.8 billion crowns

Energy group ČEZ earned 12.8 billion crowns in the first quarter of this year, with its net profit down approximately six percent year on year. Operating revenue, by contrast, rose by six billion to 93.4 billion crowns. The results were influenced in particular by last year’s acquisition of gas distribution company GasNet. The figures were released by the company today. ČEZ management also proposed a dividend of CZK 47 per share, equivalent to 80 percent of last year’s adjusted profit.

"The ČEZ Group’s first-quarter results are in line with our expectations," said ČEZ Chairman of the Board and CEO Daniel Beneš.

The group’s earnings before interest, taxes, depreciation and amortization (EBITDA) reached 43 billion crowns in the first three months, up seven percent year on year. The company said the increase was driven primarily by last year’s acquisition of GasNet. Faster depreciation of the company’s coal assets and higher interest costs, by contrast, slowed further profit growth. This year’s sale of its Polish assets contributed one billion crowns to profit.

The company also updated its full-year outlook today, forecasting operating profit of 127 billion to 132 billion crowns. At the beginning of the year, it had expected operating profit to be two billion crowns lower. It confirmed its outlook for adjusted net profit, a key metric for the dividend, at 25 billion to 29 billion crowns, unchanged from the start of the year. Adjusted net profit amounted to 12.7 billion crowns in the first quarter.

ČEZ’s board also presented its proposal today for a dividend from last year’s profit. It should amount to CZK 47 per share, which is at the upper end of the company’s current dividend policy. The policy provides for the distribution of 60 to 80 percent of adjusted profit, which stood at 31.8 billion crowns last year. The dividend was CZK 52 per share last year.

The final decision on the dividend amount will be made by the ČEZ general meeting, which will take place on June 23.

Electricity consumption in the ČEZ Distribuce distribution area rose three percent year on year to 9.6 terawatt-hours (TWh) in the first quarter. Gas consumption in the GasNet distribution area increased 12 percent year on year to 23.6 TWh. Total electricity and natural gas supplied by ČEZ Prodej rose nine percent year on year to 4.8 TWh.

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