CEZ’s profit fell by 43 percent year-on-year

At the same time, the group confirmed the full-year management outlook, which expects a adjusted net profit of 33 to 37 billion crowns for the entire year 2023. The company increased its full-year EBITDA outlook to 115 to 120 billion crowns, previously it had stated 105 to 115 billion crowns.

“The economic results for the first three quarters reflect the gradual stabilization of the energy markets. After the approval of the record dividend of CZK 145 per share and taking into account the extraordinary taxation of sales and profits of energy companies, we assume that the ČEZ Group will pay 118 to 125 billion crowns to the Czech state this year in dividends, taxes on profits and levies from excessive production sales,” said the CEO CEZ Daniel Beneš.

According to the company, several factors influenced the economic results and their year-on-year comparison. Revenues are affected by last year’s extreme fluctuations in commodity prices and subsequently introduced levies from excessive production sales, which have so far cost the company CZK 8.7 billion. The tax on windfall profits then amounted to CZK 21 billion. According to ČEZ financial director Martin Novák, the company should pay around CZK 37 to 45 billion in these levies for the whole year.

During the year, according to ČEZ statistics, the production of electricity from emitting coal and steam-gas sources gradually decreased, which decreased by 18 percent year-on-year to 12 terawatt hours (TWh). The reason is mainly the decline in market prices of electricity and the development of prices for emission allowances and natural gas. So far this year, the share of production from coal is 28 percent, while it was still around 80 percent in the early 1990s. Production of electricity from nuclear sources also fell by one percent year-on-year due to longer planned shutdowns of both power plants. On the other hand, due to favorable climatic conditions, production from renewable sources increased by seven percent.

Electricity consumption in the distribution area of ​​ČEZ Distribuce fell by four percent year-on-year to 24.8 TWh. Consumption by large enterprises fell by three percent, by households by five percent and by small enterprises by six percent. According to the company, the reason for the decrease is mainly a reduction in customer consumption due to high commodity prices as well as warm weather.

CEZ is one of the largest energy companies in the Czech Republic. Its majority shareholder is the state, which holds roughly 70 percent of the shares through the Ministry of Finance. The group recorded a record profit of 78.4 billion crowns last year. In June this year, the company’s general meeting decided to pay a dividend of 145 crowns per share. The state received 54 billion crowns from this.