William Malcolm

CEZ’s Net Profit Up 9% In H1

ČEZ’s net profit grew by nine percent year-on-year to CZK 14.7 billion in the first half of the year. Operating profit before depreciation (EBITDA) increased by 11 percent to CZK 38.7 billion, CEZ’s operating revenues increased by six percent to CZK 106.3 billion, the company announced today.

The company reported that the coronavirus pandemic had only a limited impact. This is one reason why it has increased its profit outlook for this year to CZK 21 to CZK 23 billion from the previous forecast of CZK 19 to CZK 22 billion.

In the first half of the year, ČEZ benefited from about 17 percent higher year-on-year secured electricity prices, which, together with high profits from commodity trading, helped it to 11 percent year-on-year growth in operating profit. The company also optimized production from the more expensive coal-fired power plants.

Electricity consumption in ČEZ Distribuce’s distribution area in the first half of the year decreased by five percent year-on-year, mainly due to coronavirus. Use by large enterprises was lower by 9.7 percent, while household consumption grew by 4.2 percent. In the second quarter, electricity consumption was 10.7 percent lower year on year.

CEZ sold two Polish wind power projects, Krasin and Sakówko, to KGAL Group in the second quarter.

ČEZ still does not rule out applying for a tender in which the Czech Telecommunication Office (ČTÚ) will distribute radio frequencies for fast 5G mobile networks in the form of an electronic auction. The company is currently analyzing the conditions announced by the CTU on Friday. ČEZ said they could enter the tender itself, but did not exclude a consortium with another company.

CEZ is the largest Czech energy company. The majority shareholder of the company is the Czech government, which holds 70 percent of the shares through the Ministry of Finance.