Today, before the market opened, EZ announced the results for the 3rd quarter. EBITDA for the 3rd quarter reached K 32.6 billion (+9% yoy), which was 14% above the consensus compiled by the company. The sales segment (+46% y/y) and the construction segment (+71% y/y) contributed to this. The production segment was thus above our estimates, due to slightly better than expected production from coal and better marble. Initial prices for 2023 were stable at EUR 125/MWh (+26% y/y).
Adjusted net profit for 3Q23 reached K9.0 billion (-52% y-o-y), which is roughly 3.5% above consensus due to EBITDA, while depreciation was affected by the write-down of its assets in the amount of K1.8 billion and the company recovered the exchange rate difference in the amount of K 0.7 billion. The effective tax rate increased to 61% from 13% due to the extraordinary tax, compared to our forecast of 55% effective tax.
Outlook for 2023: EZ raised its EBITDA outlook by around 7% to K115-120bn from K105-115bn (-11% mid-year range), but kept its profit outlook at K33-37bn ( -55% y/y in the center of the variance). Sales are about 1% below the Reuters consensus. The company lived up to the estimated realized price spread (from EUR 120-134 to EUR 124-129), while reducing the production outlook by 0.7 TWh due to the estimates for coal compared to the estimates for nuclear sources (i.e. a positive structural shift). From the point of view, the EZ segment slightly increased the expected EBITDA in all segments with the highest nominal change in manufacturing and retail. The revenue outlook associated with non-standard taxes was raised to K37-45 billion from K30-40 billion.
The results were slightly above estimates, thanks to the improving sales segment and better production from coal and good results in the manufacturing segment. The slightly revised outlook for EBITDA is positive, as EZ left the adjusted outlook for net profit unchanged due to the expected impact of foreign taxes. Overall, we rate the results as slightly positive. Petr Brtek, esk spoitelna analyst.
esk spoitelna is the bank with the longest tradition on the esk market. It has been one of the cornerstones of the Czech banking system for 200 years. Currently, 4.7 million clients provide services for piblin. Since 2000, it has been part of the international financial group Erste Group Bank.
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