photo: cez.cz
Prague - CEZ Energy Group's financial performance is still under the considerable influence of the special windfall profits tax. It is because of this that analysts expect the company's net profit to drop by one percent year-on-year to around CZK 21 billion in the half-year. Despite this, they believe that the company is performing above expectations at the beginning of the year. This means that it is possible to increase ČEZ's full-year outlook, which originally counted on a net profit of CZK 25-30 billion for the full year 2024. This follows from analysts' comments to ČTK.
In the first quarter of this year, the semi-state ČEZ increased its net profit by a quarter year-on-year to CZK 13.6 billion. The company's operating income, on the other hand, fell by six percent to CZK 87.4 billion.
"At the level of net profit, the tax on extraordinary gains will once again have a significant impact on the figures. In the second quarter, we expect an effective tax rate of 57 percent, significantly higher than in the same period last year (42 percent)," said J&T Bank analyst Milan Lávička. He also recalled the impact of higher costs and lower expected profits from commodity derivative trades. Lávička expects the half-year net profit to reach CZK 21.3 billion.
Bohumil Trampota, an analyst at Komerční Banka, also expects a decline in the economy compared to last year. According to him, in the second quarter alone, the year-on-year drop in net profit was more than 46 percent. "This will be affected by the absence of above-standard profits from trading, which we do not count on this year," he said. Overall, Trampota said half-year profit should be around CZK 20 billion.
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