PRAGUE — On Tuesday, CEZ, the Czech energy firm, reported a net profit of 23.4 billion Czech crowns (approximately $984 million) for the first nine months of the year. This figure represents a decrease of 6.4 billion crowns compared to the same timeframe last year, reflecting a significant drop of 27.3% in earnings, primarily due to diminished revenues in trading and mining activities.

The company is planning the construction of two new nuclear reactors and has recently entered into a partnership with Rolls-Royce SMR from the UK to collaborate on the development of small modular nuclear reactors.

CEZ has projected its net profit for the entire year to fall within the range of 26 billion to 30 billion Czech crowns. The Czech government retains a nearly 70% ownership stake in the company.

For the year 2023, CEZ’s net profit stands at 29.6 billion Czech crowns, marking a significant decline of over 63% compared to last year, which saw unprecedented profit levels. This drop has been largely attributed to a newly implemented windfall tax on profits prompted by rising energy prices.

In 2022, the company’s profits skyrocketed, benefitting from a dramatic surge in prices linked to the energy crisis stemming from the Russian invasion of Ukraine. Additionally, the firm experienced increased earnings from commodity trading on international markets, alongside high operational reliability in its energy production facilities.