CEZ Boosts 2026 Profit Forecast as Middle East Crisis Drives Energy Prices Higher
CEZ's Financial Performance and Outlook Amid Global Energy Uncertainty
First-Quarter Results and Updated Profit Forecast
PRAGUE, May 14 (Reuters) - CEZ lifted its 2026 earnings outlook on Thursday, due to a rise in prices and generation resulting from the Middle East conflict, as the Czech electricity producer posted a 6% rise in first-quarter adjusted net profit.
CEZ, majority owned by the Czech state and due for a re-organisation in the coming years, said it expected adjusted net profit of between 30 billion crowns and 34 billion crowns ($1.44 billion to $1.64 billion) in 2026, versus its previous outlook of 27 billion crowns to 31 billion crowns.
EBITDA and Profit Projections
Earnings before interest, tax, depreciation and amortisation is expected in a range of 107 billion crowns to 112 billion crowns, also higher than the previous outlook.
Impact of Middle East Crisis on CEZ Operations
CEZ said it expected higher realised prices of electricity, higher utilisation of coal-fired plants and increased coal mining volumes because of the Middle East crisis, which has led to a blockade of the Strait of Hormuz, a major global waterway for oil and gas.
2025 Financial Results
CEZ earned adjusted net profit of 28.1 billion crowns and EBITDA of 137.0 billion in 2025.
Quarterly Performance Breakdown
Adjusted Net Profit and Key Drivers
In the first quarter, adjusted net profit rose to 13.5 billion crowns, above the average estimate of 12.3 billion crowns in a Reuters poll. The end of a windfall tax was the key driver of earnings, while lower prices and generation weighed.
EBITDA Decline
EBITDA fell 18% year-on-year to 35.3 billion crowns for the quarter.
Future Output and Pricing
Pre-Sold Output for 2027
The company said it had pre-sold 31.9 terawatt hours of its 2027 output at an average of 86 euros per megawatt hour, versus a previous price of 85 euros.
Exchange Rate Information
($1 = 20.7650 Czech crowns)
(Reporting by Jason Hovet; Editing by Mrigank Dhaniwala)
