CEZ said on Thursday adjusted net profit fell by 60% year-on-year to 10.8 billion crowns ($508.43 million) in the first quarter, and earnings before interest, tax, depreciation and amortisation (EBITDA) dropped 26% to 32.5 billion crowns.
Fluctuating commodity markets after Russia's invasion of Ukraine in early-2022 drove electricity prices sharply higher last year, creating bumper earnings for firms but causing governments to seek extraordinary profits to aid a public hit by crushing power bills.
The Czech government introduced a windfall tax and levies on power production. CEZ, which is 70% owned by the state, said levies cost it 10 billion crowns in the first quarter and the tax amounted to 9 billion crowns.
The company lowered its upper range on its earnings outlook for 2023, expecting adjusted profit of 33 billion to 37 billion crowns, down from 78.4 billion last year. EBITDA should drop in to a range of 105 billion to 115 billion crowns.
CEZ's proposed dividend for 2022 was more than double its previous high of 53 crowns paid out from 2009 profits. Shareholders will vote on it at a June 26 general meeting.
CEZ said it would pay more than 100 billion crowns to the Czech state in dividends, income taxes and levies on production sales this year.
CEZ shares ended Wednesday at 1,222 crowns, its highest closing level since 2008.
($1 = 21.2420 Czech crowns)
(Reporting by Jason Hovet; editing by Uttaresh Venkateshwaran)
