CEZ's board proposes dividend of Kc52 per share, Kc18 more yr/yr

Prague, May 20 (CTK) - Energy group CEZ's board has proposed a dividend of Kc52 per share before tax from 2020's profit, which is Kc18 more yr/yr, and if the general meeting agrees, some Kc28bn will be paid to shareholders in total, CEZ spokesman Ladislav Kriz told CTK today.

As a majority shareholder, the state would receive roughly Kc20bn.

The proposed dividend reflects the sale of CEZ's Romanian assets, the firm said.

In 2020, CEZ paid out Kc34 per share from the 2019 profit. Shareholders received Kc18.3bn in total, of which Kc12.8bn went to the state.

This year's general meeting will take place on June 28, the company said today.

CEZ is 70 percent owned by the state via the Finance Ministry.

CEZ's net profit fell by Kc9bn yr/yr to Kc5.5bn in 2020. The decline was due to a greater volume of provisioning because of the sale of Romanian assets, worsening of conditions for coal power, and rising carbon credit prices, the group said.

In contrast, net income adjusted for extraordinary non-monetary items, from which the dividend is paid, rose by 21 percent to Kc22.8bn. Sales grew by 4 percent to Kc213.7bn, the highest figure since 2013.

The proposal expects 100 percent of CEZ's 2020 consolidated net profit adjusted for extraordinary items will be distributed, Kriz said today.

CEZ has proposed the highest dividend in more than ten years but has failed to dazzle the market nonetheless, Trinity Bank chief economist Lukas Kovanda said. In order to say how generous CEZ is, its dividend plans for next year must be known, too, he said, adding that if next year's dividend remains between Kc50-60, shareholders may view this year's figure as favourable.

The proposed dividend of Kc52 per share means roughly 20 percent of the proceeds from the sale of Romanian assets will be added on top of the group's entire adjusted profit, Ceska sporitelna analyst Petr Bartek said. The payment of about one-third of the proceeds had been expected but a lower figure is understandable given the planned growth in renewables announced today, he added.

The sale of CEZ's assets in Romania to London-based firm Macquarie Infrastructure and Real Assets (MIRA) was finalised in late March. The contract was signed last October, with the transaction subsequently approved by the the European competition authority and the Romanian security council.

The price of the deal was not disclosed. CEZ received Kc25bn-Kc30bn for the assets, according to analysts' earlier estimates.

Dividends paid out by CEZ for 2006-2020:

year	dividend per share (in Kc)
2020	52*
2019	34
2018	24
2017	33
2016	33
2015	40
2014	40
2013	40
2012	40
2011	45
2010	50
2009	53
2008	50
2007	40
2006	20

Source: CEZ

* - proposal

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