Net profit of Křetínský's EPH energy holding falls by more than half

Energetický a průmyslový holding (EPH), the energy group controlled by billionaire Daniel Křetínský, saw its net profit for the first half of the year fall by more than half. According to Hospodářské noviny, citing results published by the company on Thursday, the decline stems from a revaluation of the Slovak energy company Slovenské elektrárne.

Slovenské elektrárne — Slovakia's largest electricity producer — came under Křetínský's control last year. That very deal temporarily inflated the holding's profit a year earlier: in the first half of last year, it boosted the figure by €1.06 billion (roughly CZK 26 billion) thanks to a one-off effect from the acquisition.

Revenue and operating profit both grew

Meanwhile, the company's core business indicators show growth. According to the report, EPH's revenue for the first half of the year rose 29% year-on-year, to €16.7 billion (about CZK 405 billion). The holding's operating profit increased by 10%, to €1.36 billion (roughly CZK 33 billion).

In other words, the drop in net profit is not a sign of deteriorating operations, but rather an accounting effect stemming from last year's asset revaluation, which had artificially inflated the year-earlier figures.

Source: novinky.cz