Křetínský’s EPH Reports Robust First-Half Profits, Fueled by Slovak Power Plant Acquisition
Table of Contents
- 1. Křetínský’s EPH Reports Robust First-Half Profits, Fueled by Slovak Power Plant Acquisition
- 2. Strategic Acquisition Drives Growth
- 3. Financial Highlights and Future Investments
- 4. Key Projects Underway
- 5. The Future of Energy in Europe
- 6. Frequently Asked Questions about EPH and the Energy Market
- 7. What role did the russia-Ukraine war play in EPH’s profit surge?
- 8. Slovak Power Plants Propel Křetínský’s €2 Billion Profit surge
- 9. The Energy Empire of Daniel Křetínský: A deep Dive
- 10. Key Assets Driving the Profit Increase
- 11. The Role of european Energy Market Dynamics
- 12. EPH’s Strategic Decisions & Investment
- 13. The Mochovce 3 Reactor: A Game Changer
- 14. Regulatory Scrutiny and Future Challenges
Published: september 16, 2025 | Last Updated: September 16, 2025
Energy and Industrial Holding (EPH), controlled by Czech Billionaire Daniel Křetínský, announced a substantial increase in net profit before depreciation (EBITDA) for the first half of 2025, reaching EUR 2.355 billion, approximately 50 billion Czech Crowns. This impressive figure was achieved despite a challenging market environment characterized by declining commodity prices and reduced volatility.
Strategic Acquisition Drives Growth
The primary driver of this financial success has been the recent acquisition of Slovak Power Holding in May. This acquisition granted EPH a controlling 66% stake in Slovakia’s largest electricity producer. The remainder is held by the Slovak State. This move considerably boosted the company’s financial performance, contributing to a broader trend of consolidation within the European energy sector.
According to company statements, the acquisition is projected to enhance the Group’s EBITDA by an additional EUR 1.8 billion over the next twelve months, increasing total EBITDA to EUR 4 billion. Revenue from long-term capacity contracts, vital for maintaining network stability, is a key factor in this anticipated growth.
Financial Highlights and Future Investments
The Group’s free cash flow for the period ending June 2025 reached EUR 2.4 billion, with the Slovak power plants contributing EUR 1.3 billion. Total energy production across EPH’s assets amounted to 54.9 TWh, with the Slovak facilities accounting for 18.3 TWh. This represents a meaningful increase in overall energy output.
Jan Špringl, Vice-Chairman of the Board of directors and CEO of EPH, emphasized the company’s resilience and commitment to lasting practices. He stated the results demonstrate the durability of EPH’s business model and its dedication to both financial performance and a cleaner energy future.
EPH intends to continue investing in key projects aligned with Environmental, Social, and Governance (ESG) principles. Notably, the company is committed to phasing out coal by 2030. This commitment mirrors increasing global pressure to transition towards cleaner energy sources. According to the International Energy Agency, investments in renewable energy reached $1.7 trillion in 2023.
Key Projects Underway
Several significant projects are currently in growth, including a 800 MW hydrogen-burning steam-gas source launched in March at the Tavazzano power plant in Italy. The fourth block of the Mochovce nuclear power plant is nearing completion, with hot hydro-skid testing recently finalized. Further, a 880 MW steam power plant is scheduled for launch in Ostiglia, Italy, in 2026.
EPH is also planning to construct battery storage facilities with a combined capacity of 695 MW (1.544 MWh) across key European markets,including the United Kingdom,Italy,France,Germany,the Netherlands,and Slovakia. These investments aim to stabilize revenue streams and mitigate construction-related risks.
| Project | Location | capacity | Status |
|---|---|---|---|
| Hydrogen-Burning Steam-Gas Source | Tavazzano, Italy | 800 MW | Operational (Launched March 2025) |
| Mochovce Nuclear Power Plant – Block 4 | Slovakia | 1000 MW | Nearing Completion |
| Steam Power Plant | Ostiglia, Italy | 880 MW | Scheduled for Launch 2026 |
| Battery Storage Facilities | UK, Italy, France, Germany, Netherlands, Slovakia | 695 MW (1.544 MWh) | Planning Stage |
The Future of Energy in Europe
EPH’s strategy highlights a broader trend among European energy companies to diversify their portfolios and invest in sustainable technologies. The energy landscape is rapidly evolving,driven by climate change concerns and geopolitical factors. Companies are increasingly focusing on renewable energy sources, energy storage, and grid modernization to ensure a reliable and sustainable energy supply. The European Union’s Energy System Integration Strategy aims to create a more interconnected and efficient energy system across the continent.
Did you know? Europe is a leader in wind energy, with over 178 GW of installed capacity as of 2023, according to WindEurope.
Pro tip: Keep abreast of developments in energy storage technology as it will be crucial for integrating intermittent renewable energy sources into the grid.
Frequently Asked Questions about EPH and the Energy Market
- What is EPH’s primary focus? EPH is a leading energy group focused on power generation, distribution, and trading, with an increasing emphasis on sustainable energy solutions.
- How does the Slovak Power Holding acquisition impact EPH? The acquisition significantly increases EPH’s EBITDA and overall energy production capacity, strengthening its position in the Central European energy market.
- What are EPH’s sustainability goals? EPH is committed to phasing out coal by 2030 and investing in renewable energy sources and energy storage technologies.
- What is EBITDA and why is it vital? EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is a measure of a company’s profitability before accounting for financing and accounting decisions.
- What role does hydrogen play in EPH’s future? EPH is investing in hydrogen-burning technology as a cleaner option to conventional fossil fuels.
What role did the russia-Ukraine war play in EPH’s profit surge?
Slovak Power Plants Propel Křetínský’s €2 Billion Profit surge
The Energy Empire of Daniel Křetínský: A deep Dive
Czech billionaire Daniel Křetínský’s investment group, EPH (Energetický a Průmyslový Holding), has seen a dramatic surge in profits, largely fueled by its Slovak power generation assets. Recent financial reports indicate a profit increase exceeding €2 billion, marking a significant leap from previous years. This success story is deeply intertwined with the performance of Slovenské Elektrárne (SE),Slovakia’s dominant electricity producer,and the broader European energy market dynamics. Understanding the factors driving this profitability requires a look at the specific assets, market conditions, and strategic decisions made by Křetínský’s EPH.
Key Assets Driving the Profit Increase
EPH’s Slovak portfolio is centered around Slovenské Elektrárne,a company with a diverse energy mix. Here’s a breakdown of the key contributors:
* Nuclear Power Plants: Mochovce and jaslovské Bohunice nuclear power plants represent the backbone of SE’s generation capacity.these facilities provide a stable, low-carbon energy source, crucial in a market increasingly focused on sustainability. Increased output from these plants,coupled with high electricity prices,has been a major profit driver.
* Hydroelectric Power Plants: SE also operates a network of hydroelectric power plants, contributing to the overall energy mix and providing adaptability in responding to demand fluctuations.
* Coal-Fired Power Plants: While phasing down, existing coal-fired plants have benefited from temporary spikes in demand and pricing, particularly during periods of energy security concerns. Though, the long-term trend points towards their decommissioning.
* Gas-Fired Power Plants: These plants offer a crucial bridge fuel and provide flexibility to balance the grid, especially with the increasing integration of intermittent renewable energy sources.
The Role of european Energy Market Dynamics
The ample profit surge isn’t solely attributable to EPH’s asset base. Several external factors have played a critical role:
* Post-Pandemic Energy Demand: The rebound in economic activity following the COVID-19 pandemic led to a significant increase in energy demand across Europe.
* Russia-ukraine War Impact: The geopolitical instability caused by the war in Ukraine dramatically reshaped the European energy landscape.Reduced Russian gas supplies led to soaring natural gas prices, which in turn pushed up electricity prices.
* Carbon Pricing: The rising cost of carbon emissions under the EU Emissions Trading System (ETS) has made low-carbon energy sources, like nuclear, more competitive and profitable.
* Electricity Price Volatility: Extreme price volatility in the wholesale electricity market allowed EPH to capitalize on short-term trading opportunities. This included hedging strategies and optimizing power plant dispatch.
EPH’s Strategic Decisions & Investment
Křetínský’s EPH hasn’t simply benefited from favorable market conditions; strategic decisions have amplified the gains.
* Long-Term Contracts: Securing long-term power purchase agreements (PPAs) provided revenue stability and reduced exposure to price volatility.
* Modernization of Existing Assets: Investments in upgrading and extending the lifespan of existing power plants, particularly the nuclear facilities, have increased efficiency and reliability. The Mochovce 3 nuclear reactor completion is a prime example.
* Diversification of Energy Sources: While heavily reliant on nuclear, EPH has been actively diversifying its energy portfolio, including investments in renewable energy projects.
* Strategic Acquisitions: EPH’s broader strategy of acquiring undervalued energy assets across Central and Eastern europe has created synergies and economies of scale.
The Mochovce 3 Reactor: A Game Changer
The completion of the Mochovce 3 nuclear reactor in late 2023 was a pivotal moment. This new unit added approximately 1,000 MW of capacity to Slovakia’s grid, significantly increasing SE’s generation output.The reactor’s low operating costs and zero-carbon emissions have made it a highly profitable asset, contributing substantially to the recent profit surge. Delays and cost overruns plagued the project for years, but its eventual commissioning proved to be a strategic win for EPH.
Regulatory Scrutiny and Future Challenges
despite
