CEZ raises guidance on 2025 profit
The company reported earnings before interest, tax, depreciation and amortisation (EBITDA) up by 7% to 30.9 billion Czech crowns ($1.47 billion) in the second quarter, beating the 30.2 billion crown consensus forecast in a Reuters poll of analysts.
For the full-year, CEZ raised its EBITDA guidance to between 132 billion and 137 billion crowns, up from a previous outlook of 127 billion to 132 billion crowns.
CEZ shares traded 0.4% up at 1,245 crowns, having added 40% over the past year on the expected end of a windfall tax and speculation that the next government after the country's October election might buy out minority shareholders to take full control.
Chief Financial Officer Martin Novak said that while its acquisition of gas distribution network GasNet last year helped overall performance, the improved outlook was based on other factors.
Those were "slightly higher electricity prices relative to the original outlook ... operational cost savings, higher balances from electricity billing and higher distribution revenue", said Novak, adding that lower commodity prices also helped.
Adjusted net profit fell 47% to 4 billion crowns in the second quarter, against 5.5 billion crowns estimated in a Reuters poll, with CEZ citing higher depreciation and amortisation owing to the GasNet acquisition and higher coal asset write-offs.
However, CEZ also raised its full-year outlook for adjusted net profit, to between 26 billion and 30 billion crowns, up from previous expectations of 25 billion to 29 billion crowns.
CEZ's net income has been burdened by a windfall tax on profits for 2023-2025, with the company expecting to pay between 29 billion and 33 billion crowns this year.
Novak said that advance tax payments toward this year's dues mean that no further impact is expected from the first quarter of 2026, when the tax expires.
($1 = 21.0480 Czech crowns)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
24 minutes ago
- Reuters
Petrobras swings to profit in Q2, announces dividends of $1.6 billion
SAO PAULO, Aug 7 (Reuters) - Brazilian oil firm Petrobras posted on Thursday a 26.7 billion reais net profit for the second quarter, reversing a 2.6 billion real net loss in the same period last year. In a separate filing, Petrobras also announced 8.66 billion reais ($1.60 billion) in dividends and interest on equity to shareholders. ($1 = 5.4156 reais)
Reuters
24 minutes ago
- Reuters
CureVac settles patent dispute litigation with Pfizer and BioNTech
Aug 7 (Reuters) - CureVac ( opens new tab said on Thursday that the company and GSK (GSK.L), opens new tab have entered an agreement to a resolve patent dispute with Pfizer (PFE.N), opens new tab and BioNTech ( opens new tab related to mRNA-based COVID-19 vaccines. As part of the settlement, CureVac and GSK will receive a combined payment of $740 million and single-digit royalties on sales of COVID-19 vaccines in the U.S. going forward. CureVac will also grant BioNTech and Pfizer a non-exclusive license to manufacture, use, import and sell mRNA-based COVID-19 and influenza products in the U.S.
Reuters
an hour ago
- Reuters
Sun Life's second-quarter profit rises on strong Asia unit performance
Aug 7 (Reuters) - Canada's Sun Life Financial ( opens new tab reported a jump in second-quarter profit on Thursday, driven by strong growth in its Asia unit, where insurers are expanding to tap a growing, under-insured middle class and offset weakness in the U.S. market. "Sun Life's Q2 results were driven by record underlying net income in Asia with strong protection business growth, higher wealth management and investment earnings," CEO Kevin Strain said in a statement. Underlying net income from the company's Asia operations helped lift overall earnings to C$716 million ($520.88 million), or C$1.26 per share, for the quarter ended June 30, up from C$646 million, or C$1.11 per share, a year earlier. However, underlying earnings from its individual protection business declined 10% to C$299 million. Underlying earnings from its group health and protection business rose 7% to C$326 million, while individual protection earnings fell 10% to C$299 million. Wealth and asset management income was flat at C$455 million. The Toronto-based company reported underlying EPS of C$1.79, compared with analysts' average estimate of C$1.78 per share, according to LSEG data. Underlying earnings from Sun Life Financial's group health and protection businesses, which provide insurance policies to employer and government plan members, rose 7% to C$326 million. Sun Life also said David Healy will become President of Sun Life U.S. effective Sept. 1, 2025, succeeding Dan Fishbein, who plans to retire in March 2026. Shares of Sun Life have declined about 1% this year, while rival Manulife ( opens new tab, which also reported strong Asia growth this week, is down 6.4%. ($1 = 1.3746 Canadian dollars)
