CEZYY - CEZ a. s. (CEZYY) Q1 2024 Earnings Call Transcript
2024-05-15 00:57:09 ET
CEZ, a. s. (CEZYY)
Q1 2024 Earnings Conference Call
May 14, 2024 10:00 ET
Company Participants
Martin Novak - Chief Financial Officer
Barbara Seidlova - Investor Relations
Conference Call Participants
Anna Webb - UBS
Arthur Sitbon - Morgan Stanley
Piotr Dzieciolowski - Citi
Robert Maj - Ipopema Securities
Andrzej Rembelski - PKO BP
Presentation
Operator
Hello, everyone and welcome to CEZ Group Conference Call on First Quarter 2024 Results. Martin Novak, Chief Financial Officer, will go through the presentation and then, we will have room to ask questions for which we also have Mr. Ludak Horn, Head of Trading available for the answers.
Now, I’m handing over to Martin to go through the presentation.
Martin Novak
Thank you. Good afternoon and good morning to everybody. So, I’ll start with a brief presentation. On the first table, you can actually see our financial highlights and the full year outlook. Our EBITDA has grown by 24% to CZK40.3 billion. Our net income and at the same time adjusted net income has reached CZK13.6 billion or 25% improvement year-on-year. We confirm our guidance of CZK115 billion to CZK120 billion for 2024 and on EBITDA and adjusted net income, at a level of CZK25 billion to CZK30 billion. So, there is no change compared to our last presentation that was out on March 21.
On the next slide, you can actually see main variances between Q1 2023 and Q1 2024. As I already said, our EBITDA has grown by 24% and you can see the main factors actually on Slide #4 there, the biggest variances are basically two. The first one is in the segment of generation – on generation segment. Last year in first quarter, we had an additional cost of CZK10 billion related to price caps on various power plants as it was introduced by the government. And actually full year cost at the same time was as well, CZK10 billion. So basically, all those caps are drop payments above those caps have materialized in the first quarter. Clearly, this has been – this is not valid any longer, December 2023 and that’s why we don’t have this extraordinary cost. And therefore, we have CZK10 billion lower cost, meaning CZK10 billion better result in Q1 2024. At the same time, we also seen narrower margins, mainly on the lignite plants. So, about CZK5 billion, so, this is partially compensating those lack of those price caps....
CEZ, a. s. (CEZYY) Q1 2024 Earnings Call Transcript