Published 16. 3. 2022 at 16:00
To the energy giant THROUGH was very successful last year – and analysts say it will continue to do so. According to CEZ estimates, adjusted net profit should increase by as much as 80% this year, which is much more than originally expected. Over the past year, the company’s net profit fell by 3% to 22.3 billion crowns, but the result is still better than expected. CEZ expected a profit “only” in the range of 19 to 21 billion crowns. According to some, the dividend of 44 crowns is thus few, given the company’s good results.
Development of CEZ shares over the last 2 years
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With the currently proposed amount dividends, ie 44 crowns, does not agree, for example, Michal Šnobr, a major minority shareholder of ČEZ. According to him, it is precisely due to the results and expectations for 2022 that it is the proposed dividend for 2021 is low. At the general meeting will propose an increase to at least 50 crowns. He stated this on his Twitter account on Tuesday.
For comparison, in 2020 CEZ paid a dividend of 52 crowns per share, a year earlier it was 34 crowns.
According to Chairman of the Board of Directors and CEO of ČEZ Daniel Beneš The positive economic results are mainly due to the record profit from trading in commodities on foreign markets, higher realization prices of produced electricity and also the stable and safe operation of nuclear resources.
„I am proud of our employees who, in the conditions of covid limits and turbulent development on the commodity markets, were able to achieve excellent availability of production resources and thus contribute to ensuring a stable supply of electricity in the Czech Republic. At the Ordinary General Meeting, we will propose to the shareholders a dividend of CZK 44 per share, which is the result of the sum of the ordinary component of CZK 37 per share corresponding to 90% of adjusted consolidated net profit for 2021 and extraordinary components of CZK 7 per share, which reflects the contribution sales of Bulgarian assets to the total debt capacity of CEZ Group, “ stated in press release of March 15, 2022 Daniel Beneš.
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CEZ shares are going up. The outlook for next year is quite optimistic
The value of CEZ shares increased by 170 billionthe shareholders for the whole year received the highest TSR, ie the total return for shareholders among the most important European energy companies, which are included in the stock index STOXX Europe 600 Utilities.
CEZ shares on the Prague Stock Exchange on Tuesday, ie on the day of the announcement of the proposed amount, the dividends increased by almost 2% to approximately CZK 877 per share shortly after the start of trading.
Over the last year, the company’s shares have appreciated over 60%, while in mid-March it was worth 536 crowns.
Daniel Beneš believes that Acceleration of the strategy also contributed to the good results VISION 2030 – Clean Energy of Tomorrow, within which CEZ has committed itself to accelerating the overall reduction of emissions and to high ambitions in the area of sustainable business. According to the CEO, it was an important factor, of course record growth in electricity prices in wholesale markets.
“The rise in prices reflected the unprecedented rise in the cost of producing electricity from emission sources, ie the rise in the prices of emission allowances and the rise in gas prices in Europe. Thanks to its long-term strategy, ČEZ benefits significantly from this development, as its portfolio is dominated by emission-free production resources. In particular, we expect EBITDA (profit before interest, taxes and depreciation, pos. ed.) in 2022 in the amount of CZK 85-89 billion and a net profit of CZK 38-42 billion, which indicates the possibility of paying the historically highest dividend to our shareholders next year, ” adds Beneš.
After five years, the company returns CEZ’s dividend policy to 60-80%. CEZ applied this dividend policy until 2017, when the upper limit of the payout interval was temporarily extended to the level of 100% until the development strategy was specified.
The average payout ratio of comparable energy companies in Europe is around 60%. After last year’s acceleration of the strategy, ČEZ is returning to the original band, which will be reflected in the proposed dividend from the profit for 2022.
“We expect a dividend of CZK 56-62 per share, which corresponds to 80% of the expected profit and at the same time the highest value of the dividend since the establishment of the company,” said Martin Novák, Member of the Board of Directors and Director of CEZ’s Finance Division.
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