CEZ raises its outlook again due to rising energy prices

PRAGUE, Aug 11 (Reuters) - Czech utility CEZ lifted its outlook for a second straight quarter on Tuesday due to a rise in prices and nuclear power generation resulting from the Middle East conflict.

The company, majority owned by the Czech state, reported second-quarter adjusted net profit of 4.3 billion crowns ($204.48 million), up 8% year-on-year because of the elimination of a windfall tax but below a Reuters poll estimate of 7.3 billion crowns due to revaluations in trading.

• CEZ said it expected its full-year adjusted net profit to reach between 31 billion and 35 billion crowns, versus a previous outlook of 30 billion to 34 billion crowns.

• It said earnings before interest, taxes, depreciation and amortisation (EBITDA) should reach 109 billion to 114 billion crowns.

• First-half adjusted profit stood at 17.8 billion crowns and EBITDA at 59.0 billion crowns.

• Improved performance from the distribution segment, increased output from nuclear plants and higher prices for generated electricity due to the Middle East conflict are behind the better outlook, the company said.

• The assumed average realised price in the outlook rose to €106 to €110 per MWh, from €104 to €108.

• CEZ Chief Financial Officer Martin Novak said on a media call that "the vast majority" of expected 2026 output has already been pre-sold.

• Novak said that the creation of subsidiary CEZ Energy — part of a wider restructuring — is going according to plan.

• CEZ's board is still to decide which customer segments will be transferred to CEZ Energy and the transfer will take place by the end of the first quarter of 2027.

• S&P earlier this year cut its outlook for CEZ due to potential changes; Novak said debt allocation will be key as far as ratings.

($1 = 21.0290 Czech crowns)

(Reporting by Jason Hovet; Editing by Sharon Singleton)