Central Europe’s biggest listed utility ČEZ Group reported a net income of 14.2 billion Czech crowns (515 million euros) in the first quarter of 2020.
The significant increase in profit was mainly caused by the electricity’s prices’ growth, while the COVID-19 pandemic has had only a limited impact on the Group.
Daniel Beneš, Chairman of the Board of Directors and CEO of ČEZ, welcomed the company’s financial performance, which exceeded all the expectations.
“We benefited from the medium-term hedging of our production revenues on wholesale markets and hedging contracts in Germany also brought us 1.4 billion Czech crowns due to an increase in the difference between Czech and German electricity market prices,” he said. “We assume that the COVID-19 pandemic will affect ČEZ Group only temporarily and to a limited extent. ČEZ Group maintains a strong financial health and remains a stable company and a security for shareholders.”
Martin Novák, Member of the Board of Directors and Director of the Finance Division, estimated that the pandemic would cause an up to 4 billion Czech crowns (145 million euros) hit to full-year 2020 EBITDA.
Operating revenues reached 57 billion Czech crowns (207 million euros), increasing year-on-year by 10 per cent. Electricity production from traditional sources decreased year-on-year by 5 per cent while electricity production from new energy sources increased by 8 per cent, mainly due to better weather conditions in Germany and Romania.
In regards to the Dukovany nuclear power plant, Pavel Cyrani, Vice-Chairman of the Board of Directors reminded that the government is willing to conclude two agreements with ČEZ for its construction.
At the same time, the Deputy Prime Minister will discuss with the European Commission further measures for the Czech Republic’s transition to low-carbon energy. ČEZ Group is also gradually transitioning from coal to emission-free sources, year-on-year ČEZ has shut down 500 megawatts (MW) of coal-fired units.