The Czech energy giant ČEZ is reporting a 10% rise in first-quarter earnings to CZK 57bn, while EBITDA rose 4.2 percent to CZK 22.2bn. An 18 percent price rise for electricity helped the company improve on results from the first quarter of 2019 when prices rose 15 percent. However, the company’s profitability is being challenged by the rising cost for admissions permits which have jumped 100 percent since last year and the amount that the company is able to secure for free is now marginal. ČEZ is able to offset part of this added expense thanks to the fact that it produces 50 percent of its electricity without emissions, which improves profitability.
In spite of a slightly higher level of debt servicing costs, the company is predicting a Q1 net profit similar to that in 2019 of around CZK 10.3bn. ČEZ renewed electricity production at first block of the Temelin nuclear power plant in southern Bohemia. The block had been off-line since March 13 because of a long-planned change of fuel rods. These plans were carried out despite the state of emergency which was declared the day before the block was taken off-line and the changes fuel was carried out during the two months of lockdown.
