“ČEZ Group’s Q1 financial results accord with our expectations and reflect gradual stabilisation in energy markets. Price stabilisation is evidenced by the fact that, at the beginning of April, we paid off the last billion EUR of a specific loan agreement with the Czech State, which provided a total of EUR 3 bn. to us in 2022, for covering extraordinary margining requirements, i.e., the obligation to supply substantial funds for securing trading in energy commodities,” said Chairman of the Board of Directors and CEO of ČEZ Daniel Beneš, adding: “The future of the Czech energy sector will be based on renewable sources and safe nuclear energy. A major milestone came in the development of nuclear energy in the Czech Republic in April, as the European Commission approved state aid for a new nuclear unit in Dukovany. On the same day, we received updated bids from both bidders for the construction of the new nuclear units.”
Operating income in Q1 was down by CZK 6.0 bn. year on year, to CZK 87.4 bn. Operating income before depreciation and amortisation (EBITDA) was up by CZK 7.8 bn. year on year, to CZK 40.3 bn. The year-on-year comparison was impacted by levies on excess production revenues that added CZK 10 bn. to Q1 2023 costs. On the other hand, the decrease in power generation margin in particular had a negative effect, given the reduction in electricity realisation prices and the growth in the purchase price of emission allowances.
Power generation from renewable and nuclear sources was down by 3% year on year. Whereas renewable sources produced 0.2 TWh more electricity, particularly thanks to above-average hydrological conditions and higher use of pumped-storage hydro power plants, generation from nuclear sources was down by 0.5 TWh, due to the different schedules of planned outages of nuclear power plants.
Electricity consumption in the distribution territory of ČEZ Distribuce decreased by 1% year on year, to 9.3 TWh, with household consumption being down by 2%, primarily on account of the warm weather in Q1 2024. Total climate- and calendar-adjusted electricity consumption was up by 1% year on year, to 9.8 TWh.
The full-year financial outlook remains unchanged from the initial prediction published in March. Operating income before depreciation and amortisation (EBITDA) between CZK 115 and 120 bn. and a net profit adjusted for extraordinary effects between CZK 25 and 30 bn.