ČEZ Group Reports Stable Financial Results for First Half of 2023
The ČEZ Group, a leading energy company in the Czech Republic, has announced its financial results for the first half of 2023. The group reported a net profit of 33 to 37 billion Czech koruna for the entire year, in line with its annual outlook.
According to Daniel Beneš, the Chairman of the Board of Directors and CEO of ČEZ, the results reflect the gradual stabilization of energy markets. He also mentioned that the group expects to pay a record dividend of 145 Czech koruna per share, resulting in a total payment of 110 to 120 billion Czech koruna to the Czech state in dividends, taxes, and excessive production revenue contributions.
Several factors influenced the financial results and their year-on-year comparison. The extreme fluctuations in commodity prices, particularly after Russia’s military invasion of Ukraine last year, affected the group’s revenues. The largest impact on the net profit came from the excessive production revenue contributions imposed by the government, which cost the company 11 billion Czech koruna, and the newly introduced 60% tax on unexpected profits, which added more than 13 billion Czech koruna in expenses. The company expects these measures to result in contributions of 30 to 40 billion Czech koruna for the entire year.
During the first half of the year, the ČEZ Group reduced its net debt by 113 billion Czech koruna. This reduction was attributed to the partial stabilization of the energy market, leading to lower margin deposits on commodity exchanges.
However, the group made significant payments totaling 117 billion Czech koruna between July 1st and August 1st. These payments included dividends of 78 billion Czech koruna, a corporate income tax supplement of 15 billion Czech koruna for the year 2022, and a repayment of one billion euros from a loan provided by the Czech state, equivalent to approximately 24 billion Czech koruna.
The production of electricity from coal and gas sources decreased by 22% year-on-year to 7.8 terawatt-hours (TWh) during the first half of the year. This decline was due to lower utilization of resources in response to the decline in market electricity prices and the development of emission permit and natural gas prices. The share of electricity production from coal sources reached its lowest level at 27%. On the other hand, electricity production from nuclear and renewable sources increased by 2% to 17.2 TWh. The increase was mainly driven by higher production in hydroelectric power plants and improved availability of the Dukovany nuclear power plant.
The electricity consumption on the distribution territory of ČEZ Distribuce decreased by 4% year-on-year to 17.4 TWh. Both large businesses and households experienced a 4% decrease in consumption, while small businesses saw a 7% decrease. The company attributed the decline to customers’ consumption restrictions due to high commodity prices.
In 2022, the ČEZ Group achieved a record profit of 78.4 billion Czech koruna. In June of this year, the general meeting of shareholders approved the payment of a record dividend, reflecting the company’s strong financial performance.ČEZ Group Reports Strong First Half Results and Confirms Full-Year Outlook
The ČEZ Group, a leading energy company in the Czech Republic, has announced its financial results for the first half of 2023. The group reported a net profit of 33 to 37 billion Czech koruna for the full year, in line with its expectations.
The company’s CEO, Daniel Beneš, stated that the results reflect the gradual stabilization in the energy markets. He also mentioned that the approval of a record dividend of 145 Czech koruna per share, along with the extraordinary taxation of revenues and profits of energy companies, will result in the group paying 110 to 120 billion Czech koruna in dividends, taxes, and excessive production levies to the Czech state this year.
Several factors contributed to the financial results and their year-on-year comparison, according to the energy group. The revenues were influenced by extreme fluctuations in commodity prices, particularly after Russia’s military invasion of Ukraine last year. The largest impact on the net profit came from the excessive production levies imposed by the government, which have cost the company 11 billion Czech koruna so far, and the newly introduced tax on unexpected profits, which has burdened the company with costs exceeding 13 billion Czech koruna. The company expects these measures to result in levies of 30 to 40 billion Czech koruna for the full year.
The ČEZ Group’s net debt decreased by 113 billion Czech koruna in the first half of the year. This was mainly due to the reduction in margin deposits on commodity exchanges following the partial stabilization of the energy market.
However, the group made three significant payments totaling 117 billion Czech koruna between July 1 and August 1. These payments included dividends of 78 billion Czech koruna, a corporate income tax supplement of 15 billion Czech koruna for 2022, and a repayment of one billion euros from a loan provided by the Czech state, equivalent to approximately 24 billion Czech koruna.
During the first half of the year, electricity production from coal and gas sources significantly decreased by 22% year-on-year to 7.8 terawatt-hours (TWh). This was due to lower utilization of resources due to the decline in market electricity prices and the development of emission permit and natural gas prices. The share of electricity production from coal sources reached its lowest level at 27%. On the other hand, electricity production from nuclear and renewable sources increased by 2% to 17.2 TWh. The increase was mainly driven by higher production in hydroelectric power plants and increased availability of the Dukovany nuclear power plant.
The electricity consumption on the distribution territory of ČEZ Distribuce decreased by 4% year-on-year to 17.4 TWh. Consumption by large businesses and households both decreased by 4%, while consumption by small businesses was 7% lower. The company attributed the decline to customers’ consumption restrictions due to high commodity prices.
In 2022, the ČEZ Group achieved a record profit of 78.4 billion Czech koruna. In June of this year, the company’s general meeting decided to pay a dividend of 145 Czech koruna per share, equivalent to almost the entire net profit for the previous year. The state will receive 54 billion Czech koruna from the dividend payment. The company began distributing dividends at the beginning of August.
Overall, the ČEZ Group’s financial results for the first half of 2023 demonstrate its resilience in the face of challenging market conditions. The company remains optimistic about its full-year outlook and expects to continue delivering strong performance in the energy sector.
2) What factors contributed to the decrease in electricity consumption on the distribution territory of ČEZ Distribuce by 4% year-on-year
Na for 2022, and a repayment of one billion euros from a loan provided by the Czech state.
In terms of electricity production, the group saw a decrease of 22% in the first half of the year, primarily from coal and gas sources. This decline was due to lower utilization of resources in response to market electricity prices and the development of emission permit and natural gas prices. On the other hand, electricity production from nuclear and renewable sources increased by 2%, driven by higher production in hydroelectric power plants and improved availability of the Dukovany nuclear power plant.
Electricity consumption on the distribution territory of ČEZ Distribuce also decreased by 4% year-on-year, attributed to consumption restrictions by customers due to high commodity prices.
In 2022, the ČEZ Group achieved a record profit of 78.4 billion Czech koruna, and the approval of a record dividend reflects the company’s strong financial performance.
Overall, the ČEZ Group’s financial results for the first half of 2023 demonstrate stability and alignment with its annual outlook. The gradual stabilization of energy markets, along with cost-saving measures and increased production from nuclear and renewable sources, contribute to the group’s positive performance.
