Czech utility ČEZ profit rises to 14.5 billion koruna, raises full-year outlook

Czech energy group ČEZ earned 14.5 billion koruna in the first quarter of this year. The group’s net profit thus rose by 13 percent year on year due to the end of the windfall tax, the company said in a press release today. Operating revenues, on the other hand, fell by nine percent to 85 billion koruna. Earnings before interest, taxes, depreciation and amortisation (EBITDA) declined by 18 percent to 35.3 billion koruna, which ČEZ attributed to lower realised electricity prices. The group also announced today that it had raised its business outlook for the full year.

"The first-quarter financial results exceeded initial expectations. This was mainly supported by the stable operation of generation assets, a relatively cold winter and the prudent procurement strategy of the sales companies. Following project preparation, we managed to significantly increase investment in modern zero-emission energy. Total investment reached 16 billion koruna, representing more than a doubling year on year," said Daniel Beneš, chairman of the board and CEO of ČEZ.

Investment activity was primarily directed towards zero-emission sources, the modernisation and reinforcement of distribution grids, and the preparation of strategic energy projects. Construction of the Mělník waste-to-energy facility (ZEVO) has begun.

ČEZ’s electricity generation volume fell by four percent year on year to 13.8 terawatt-hours (TWh) in the first quarter. Electricity distribution in the ČEZ Distribuce distribution area rose by four percent year on year to 9.9 TWh, or by two percent after weather and calendar adjustment. Gas distribution in the GasNet group’s area increased by eight percent to 25.5 TWh. "Colder weather accounted for three percent, while the remaining five percent was the result of the acquisition of Gas Distribution," the company said.

The ČEZ Group raised its business outlook for the full year. It expects EBITDA of between 107 billion and 112 billion koruna and adjusted net profit of between 30 billion and 34 billion koruna. "The main reason for raising the outlook is higher realised generation prices and higher generation and mining volumes as a result of the crisis in the Persian Gulf and rising market prices of energy commodities," ČEZ said.

ČEZ is the largest energy company in Czechia. Its majority shareholder is the state, which holds around 70 percent of its shares through the Ministry of Finance. The remainder is owned by minority shareholders. The government of ANO, SPD and the Motorists plans to nationalise the company.