Latest news with #MartinNovak
Reuters
4 days ago
- Business
- Reuters
CEZ raises guidance on 2025 profit
PRAGUE, Aug 7 (Reuters) - Czech electricity producer CEZ ( opens new tab raised its full-year profit outlook on Thursday, boosted by higher power prices than expected, cost savings and stronger distribution revenue. 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)
Yahoo
16-05-2025
- Business
- Yahoo
CEZ AS (XPRA:CEZ) Q1 2025 Earnings Call Highlights: Revenue and EBITDA Growth Amidst Net Income ...
Operating Revenue: 93.4 billion CZK, a 7% increase year-on-year. EBITDA: 43 billion CZK, a 7% increase. Net Income: 12.8 billion CZK, a 6% decline. CapEx: Nearly 7 billion CZK, a 6% decline. Dividend Proposal: 47 CZK per share, 80% of adjusted net income. EBITDA Guidance for 2025: Increased to 127-132 billion CZK. Net Income Guidance for 2025: Maintained at 25-29 billion CZK. Distribution Growth: Over 50% year-on-year, driven by inclusion of GasNet and increased investments. Sales Segment Growth: Almost 90% year-on-year, influenced by lower cost deviations and colder winter. Gas Volume Growth: 12% increase due to colder winter. Electricity Volume Growth: 0.7% increase, indicating economic recovery. Renewable Generation Decline: 39% decrease due to dry winter. Coal Generation Increase: 24% increase due to colder winter. Hedging Update: 2/3 sold for 2026, with average achieved price of 94. Warning! GuruFocus has detected 10 Warning Sign with XPRA:CEZ. Release Date: May 15, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. CEZ AS (XPRA:CEZ) reported a 7% year-on-year increase in operating revenue, reaching 93.4 billion Czech crowns. The company's EBITDA also improved by 7%, reaching 43 billion Czech crowns. CEZ AS (XPRA:CEZ) successfully disposed of its Polish power plants, achieving a profit of 1 billion Czech crowns. The company signed a contract with the Czech government to transfer 80% of shares in a new nuclear project, which will not impact its balance sheet with future debt. CEZ AS (XPRA:CEZ) proposed a dividend of 47 Czech crowns per share, representing 80% of adjusted net income, indicating strong financial health. Net income declined by 6% compared to the first quarter of 2024, reaching 12.8 billion Czech crowns. CapEx saw a slight decline of 6%, reaching almost 7 billion Czech crowns. The company faced a negative impact of 5.5 billion Czech crowns due to declining power prices. Depreciation and amortization increased by 66%, driven by accelerated depreciation of coal assets and inclusion of gasnet. The generation segment experienced a decline of 5.5 billion Czech crowns, mainly due to price effects and lower output from renewables. Q: Can you explain the increase in depreciation and amortization guidance and its impact on net income? A: Martin Novak, CFO, explained that the increase is due to higher depreciation on gas net assets and nuclear assets, which was underestimated. Despite the increase in EBITDA, the windfall tax impacts net income, particularly for power generators like CEZ, which is why the net income guidance remains unchanged. Q: Are there any tangible plans for nationalizing CEZ under a different government? A: Pavel Cyrani, Vice Chairman, stated that discussions about increasing government ownership are part of the election campaign, and it's difficult to comment on the rationale. The future strategy will depend on the election results and the new government's plans. Q: With the sale of the new nuclear project, where do you see the best opportunities to reinvest freed-up CapEx? A: Martin Novak noted that the sale preserves funds for planned investments rather than freeing up new funds. CEZ plans to invest heavily in distribution, renewables, and prolonging the life of current nuclear assets, with a focus on maintaining a balanced debt capacity. Q: What is the current average power price and volume for this year? A: Martin Novak stated that the current estimate is between 120 and 125 per megawatt hour, as included in their financial guidance. Q: What are the implications of the nuclear project disposal on liabilities and operational roles? A: Martin Novak clarified that the contingent equity liability of 1.7 billion is now removed. CEZ retains a 20% stake with a contract ensuring a 10% return on equity, with no significant risk involved. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
