CEZ increases its 2025 outlook despite lower-than-expected Q2 net profits

CEZ, the Czech electricity producer, raised its profit forecast for the full year on Thursday. This was due to the earnings growth mainly driven by the acquisition and integration of the gas distribution network GasNet.

The company's EBITDA forecast for the full year has been raised from 127-132 billion Czech crowns to 132-137.

The results exceeded our initial expectations. We have therefore increased our outlook for full-year earnings," said Chief Executive Daniel Benes in a press release.

CEZ's adjusted net profit dropped 47%, to 4.0 billion crowns. This was compared to an expectation of 5.5 million crowns. CEZ cited higher depreciation, amortisation, and write-offs due to the GasNet purchase and higher writes offs of coal assets.

CEZ has also increased its forecast for the full-year adjusted profit to 26-30 billion Crowns, up from 25-29 billion Crowns.

The total revenue for the second quarter fell to 74.2 billion crowns, down from 74.3 billion crowns one year earlier. This was below the analyst average of 80.1 billion Crowns.

CEZ has said that it has benefitted so far in this year from improved sales segment results, increased production at nuclear power stations, and the consolidation of GasNet.

The report said that the decline in electricity prices and the lower profits of commodity trading were two main negative factors.

(source: Reuters)