CEZ Group, an influence producer and distributor within the Czech Republic, has posted CZK 29.6 billion ($1.3 billion) in web earnings for 2023, its highest over the past 10 years excluding a rare 2022.
For 2022, when oil and fuel costs throughout the globe soared following Russia’s invasion of Ukraine, the state-owned firm had reported web earnings of CZK 80.7 billion ($3.5 billion).
Final yr, sustained manufacturing and good points from commodity buying and selling offset decrease electrical energy costs and decrease home demand for electrical energy, in addition to increased taxes, CEZ stated in a information launch.
Earnings earlier than curiosity, taxes, depreciation and amortization fell 5 p.c to CZK 124.8 billion ($5.3 billion). “The year-on-year comparability was impacted by the newly launched levy on extra revenues from era, which added CZK 10 bn [$428.4 million] to 2023 prices”, CEZ stated.
Web revenue adjusted for extraordinary or nonrecurring objects stood at CZK 34.8 billion ($1.5 billion), primarily impacted by “the creation of provisions for the property of Severoceske doly resulting from a important deterioration in market circumstances for future coal-fired energy era”, CEZ stated referring to its coal mining unit within the Severoceska brown coal basin.
Working revenues climbed 18 p.c to CZK 340.6 billion ($14.6 billion).
“Regardless of the numerous decline in electrical energy costs, we had been capable of meet our preliminary monetary targets”, Daniel Benes, chairman of the board of administrators and chief government of CEZ, stated in an announcement. “This was primarily as a result of secure and dependable era at our nuclear energy crops, which had been capable of generate greater than 30 TWh [terawatt hours] for the fifth consecutive yr”.
Nonetheless, that represented a decline of two p.c resulting from downtimes at CEZ’s two nuclear crops within the cities of Dukovany and Temelin. “The capital initiatives and measures carried out throughout these downtimes will contribute to the environment friendly era of extra emission-free vitality”, CEZ stated.
CEZ highlighted that era from renewable sources rose 9 p.c.
In the meantime coal and gas-fired era decreased 13 p.c “as a results of decrease supply deployment in view of the deterioration in market working circumstances”, the announcement said.
“Within the Czech Republic, the share of coal-fired era has reached 27 p.c, whereas within the early Nineties the share of coal was nonetheless over 70 p.c”, it stated.
In a method launched Could 20, 2021, CEZ pledged to chop the share of coal-fired electrical energy from 39 p.c in 2019 to 25 p.c by 2025 and 12.5 p.c by 2030.
“The way forward for the Czech vitality sector will likely be based mostly on renewable sources and secure nuclear energy”, Benes added. “Already now 74 p.c of our earnings are generated by emission-free actions. We’re altering quickly; twenty years in the past coal was nonetheless the primary supply of revenue”.
Moreover steady era CEZ’s 2023 outcomes acquired assist from “the wonderful buying and selling efficiency of our buying and selling enterprise, which achieved the second-best outcome ever and generated a buying and selling margin of CZK 9.4 billion [$402.7 million]”, the chief government stated.
Energy consumption in CEZ’s distribution territory fell 4 p.c to 33.6 tWh. “The lower is especially resulting from diminished buyer consumption as a results of excessive commodity costs and climate circumstances”, CEZ stated. “The autumn in consumption was additionally influenced by the increase in rooftop photovoltaic installations by prospects”.
CEZ spent almost CZK 46 billion ($2 billion) in capital for fastened property final yr, up CZK 11 billion ($471.3 million). “The biggest quantity, greater than CZK 22 bn [$942.6 million], was expended within the Technology phase, of which almost CZK 9 bn [$385.6 million] was spent on the acquisition of nuclear gasoline”, CEZ stated.
For shareholder returns, it stated, “[T]he dividend coverage in place signifies a dividend of CZK 39 to 52 [$1.7–2.2] per share”.
To contact the writer, electronic mail jov.onsat@rigzone.com