According to ČEZ, the decline in net profit was due to the deterioration of market conditions for coal energy in connection with the increase in the European Union’s climate goals and the recommendation of the Czech Coal Commission to stop burning coal by 2038.
–
“For these reasons, the market value of Severočeské doly decreased and CEZ Group created a provision for long-term assets of the mining company of CZK 8.7 billion in accordance with accounting standards, reflecting lower expected demand for coal and earlier cessation of coal mining,” said CEZ spokesman Ladislav Cross.
–
Adjusted for extraordinary effects, such as provisions, CEZ’s net profit fell by 31 percent to 11.3 billion.
–
According to the latest climate proposals presented in July, the EU wants to increase the share of renewables in energy consumption, among other things, in the fight against global warming.
–
In the first half of the year, CEZ Group’s energy production from emission-free renewable sources increased by nine percent year-on-year and production from nuclear sources by four percent.
–
On the contrary, according to ČEZ, production from coal sources fell by 23 percent, mainly due to the sale of the Počerady power plant and the shutdown of the Prunéřov I power plant. Overall, the share of ČEZ’s coal production is already below 30 percent.
–
“We continue to implement our accelerated Clean Energy of Tomorrow strategy, which focuses on growing the share of emission-free sources and the Czech Republic and Central Europe,” commented CEZ CEO Daniel Beneš on the group’s results.
–
“CEZ Group’s CO2 emission intensity from electricity generation fell by 19 percent year-on-year in the first half of the year, and we completed the sale of Bulgarian assets for 8.6 billion crowns,” added Beneš.
–
According to ČEZ, the sale of Bulgarian assets affected the economic results in the first half of the year and will also affect the full-year result.
–
“Overall, CEZ Group is leaving Bulgaria with a positive cash balance in excess of one billion crowns and is continuing international arbitration against the Bulgarian state, where we are claiming potential additional income for CEZ shareholders,” said CEZ Board member and CFO Martin Novak.
–
In the first half of the year, according to ČEZ, energy sales to end customers in the Czech Republic increased significantly – by 11 percent for electricity and by 20 percent for gas.
–
Electricity consumption in ČEZ Distribuce’s distribution area increased by nine percent year-on-year.
–
It grew by eight percent for large companies and by two percent for households. Consumption thus reached a higher level than in 2019, ie before the start of the covid-19 pandemic.
–
Therefore, CEZ Group is raising estimates of this year’s full-year financial results.
–
“We are increasing the full-year EBITDA outlook to the level of 58 to 60 billion crowns and net profit adjusted for extraordinary effects to 18 to 20 billion crowns due to the positive development across all segments. CEZ Group’s net debt fell by CZK 43 billion in the first half of the year, ”said Novák.
–
However, according to data on the ČEZ website, electricity production fell by seven percent year-on-year to 27.7 terawatt hours (TWh) in the first half of the year. Compared to last year, the number of employees in the group also decreased, by seven percent to around 30,300 at the end of the first half of the year.
–
CEZ is the largest Czech energy company. Its majority shareholder is the state, which holds about 70 percent of the shares through the Ministry of Finance.
—
