Analysts expect drop in CEZ's profits, revenues for 2025

Prague, March 10 (CTK) - Energy company CEZ recorded a decline in profits and revenues last year, with adjusted net profit falling by about 12 percent yr/yr to below CZK28bn, according to estimates of analysts polled by CTK.

At the same time, however, the company would achieve profit at the upper limit of its original targets for last year. Lower electricity prices and the absence of the windfall tax after several years will have an impact on this year's results, the analysts agreed.

CEZ is to present its results for 2025 on Thursday.

In 2024, CEZ posted a net profit of CZK30.5bn, which was a year-on-year increase of almost 3 percent. Adjusted net profit, which is key to the amount of dividends, fell to CZK31.8bn.

J&T Bank analyst Milan Lavicka noted that last year's results will be the last to reflect the windfall tax. Adjusted net profit should be around CZK27.9bnn, which would represent a 12 percent decline compared to the previous year, according to him.

Lavicka also said he expected a year-on-year decrease in the company's operating profit, estimating it at around CZK136.6bn. Although this would represent a drop of around 1 percent compared to the previous year, CEZ would still reach the upper limit of its own targets for last year, he said. The company's revenues should reach CZK329.1bn, 5 percent less han in 2024, Lavicka added.

Komercni banka analyst Bohumil Trampota also expects a year-on-year decline in CEZ's financial results. According to him, net profit could amount to CZK27.5bn and operating profit to approximately CZK137.1bn. "This would mean that CEZ would meet its full-year targets," he noted.

The company is also expected to publish its own financial outlook for this year on Thursday.

According to Lavicka, CEZ's finances will no longer be burdened by the windfall tax, but on the other hand, the average realised price of electricity is expected to fall by more than a fifth compared to last year. He therefore expects a significant decline in operating profit to CZK115bn, while adjusted net profit should rise to CZK40bn.

Trampota expects a similar development, forecasting a decline in operating profit to CZK112.5bn and, conversely, an increase in net profit to CZK37.4bn.

The CEZ board is expected to announce its dividend proposal in the coming months. Given the company's current dividend policy, analysts expect a dividend of 80 percent of profits. According to their calculations, this would mean approximately CZK41 per share, which is less than a year ago. The company paid CZK 47 per share from the 2024 profits.

The CEZ group is one of the largest energy companies in Czechia. Its majority shareholder is the state, which holds approximately 70 percent of the shares through the Finance Ministry. In recent weeks, the government announced a plan to take full control of the company. It wants to achieve this during the current election period.

tam/er

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