Czech utility CEZ to report quarterly results today, analysts expect profit to fall

Semi-state-owned energy company CEZ will publish the group’s results for the first quarter of this year today. Analysts estimate its net profit at around CZK 9 billion to CZK 10 billion, which would represent a year-on-year drop of tens of percent. The company’s revenue, by contrast, could rise slightly compared with last year, according to estimates. Its results will again be affected by the so-called windfall tax and last year’s acquisition of GasNet.

CEZ earned CZK 30.5 billion for the whole of last year. The company’s net profit therefore rose by almost three percent year on year. Earnings before tax, depreciation and amortisation (EBITDA) also increased, to CZK 137.5 billion. By contrast, adjusted net profit, which is key to the dividend amount, fell compared with the year before last. It stood at CZK 31.8 billion last year, CZK 3 billion less year on year.

In addition to the company’s first-quarter results, its management may also announce today its own dividend proposal based on last year’s adjusted profit. Under the company’s current dividend policy, which provides for the distribution of 60 to 80 percent of adjusted profit, this year’s dividend should amount to CZK 35 to CZK 47 per share, meaning a payout of CZK 19 billion to CZK 25 billion to shareholders. However, it is not certain that the dividend proposal will be announced today; in the past, the company has also announced it as part of the notice convening its general meeting, which is expected to take place in late June this year.

CEZ is the largest energy company in the Czech Republic. The state is its majority shareholder, holding around 70 percent of its shares through the Ministry of Finance.