Czech energy group ČEZ to use retained earnings for renewables and energy services

The ČEZ energy group plans to use the largest share of the funds from profits not distributed to shareholders to develop renewable energy sources and invest in energy services (ESCO) in Czechia and abroad. It also wants to support investment in distribution and improve its portfolio. ČTK was told today by group CFO Martin Novák. Last year, ČEZ reported a record net profit of 80.7 billion crowns, and the company’s management proposed paying 80 percent of it to shareholders as dividends.

„We have planned investments to develop renewable energy projects, and we are also preparing investments in ESCO companies in the Czech Republic, Slovakia, Poland, Germany and northern Italy,“ Novák said, describing the areas in which the company primarily plans to invest.

According to him, another part of the retained earnings should go toward investment in distribution, improving the company’s portfolio and other regular programmes.

The company’s current dividend policy, approved by its management a year ago, provides for a payout ratio of 60 to 80 percent of consolidated profit. The board’s proposal for this year’s dividend is therefore at the top of that range. Novák said it was a fair proposal that would maximise dividend payments to shareholders while also ensuring the company has enough cash to weather any future fluctuations in the energy market and fund planned investments. He also noted that this year’s dividend will be several times the amount paid in previous years.