CEZ Reports Significant Decline in Profits, Eyes Nuclear Expansion

The Czech power company CEZ reported a net profit of 23.4 billion Czech crowns for the first nine months of the year, seeing a 27.3% decline due to lower trading and mining earnings. Plans are underway for nuclear expansion, despite profits being impacted by recent windfall taxes.

The Czech power giant CEZ announced a net profit of 23.4 billion Czech crowns in the year's first three quarters, a notable decrease of 6.4 billion crowns from the same timeframe in the previous year.

The company's net earnings saw a 27.3% decline, attributed to reduced performance in trading and mining sectors. Despite this, CEZ is progressing with its ambitious plans to expand nuclear capabilities. An agreement was recently reached with Britain's Rolls-Royce SMR to develop small modular nuclear reactors.

Looking ahead, CEZ forecasts its net profit for the full year to range between 26 and 30 billion crowns. The decline in profits this year is largely due to a windfall tax as energy prices soared, unlike in 2022 when their profits peaked due to increased prices from the geopolitical impacts of the Russian invasion of Ukraine.

(With inputs from agencies.)