CEZ Net Profit Drops by 43% to $1.3 Billion Due to Windfall Tax Amid Energy Price Surge
Profit fall prompts a 5 billion increase in dividends and levies to Czech state, which holds a 70% stake in the energy company, amid gradual energy market stabilization.
- CEZ's net profit for the first three quarters of the year reached 29.8 billion Czech crowns ($1.3 billion), a 43% decline compared to the same period last year, largely attributed to a windfall tax on profits as energy prices rose significantly.
- Despite the drop in profits, the Czech state, which holds nearly 70% stake in CEZ, is set to receive up to 125 billion Czech crowns ($5.4 billion) from the company in dividends, income taxes and levies on production sales, which includes the windfall tax.
- The financial yield to the Czech state from CEZ is 5 billion Czech crowns more than what was anticipated in August.
- According to CEZ's Chief Executive, Daniel Benes, these results reflect a 'gradual stabilization on energy markets,' following an enormous rise in energy prices last year influenced by the Russian invasion of Ukraine, increased commodity trading profits on foreign markets and high operational reliability in CEZ's power plants.
- Last year's significant rise in energy prices led to record dividends of 145 Czech crowns per share.
Washington Post 
Associated Press 