PRAGUE (AP) — Czech power company CEZ on Tuesday reported net profit of 23.4 billion Czech crowns ($984 million) in the first three quarters of the year, down 6.4 billion than at the same time last year.

CEZ attributed the 27.3% drop to lower profits in trading and mining.

The company is preparing to build two new nuclear reactors and recently signed an agreement with Britain’s Rolls-Royce SMR to develop and build small modular nuclear reactors.

The group expects a net profit for the full year of between 26 and 30 billion Czech crowns.

The Czech state has a stake of almost 70% in the company.

CEZ’s net profit in 2023 amounted to 29.6 billion Czech crowns, down more than 63% from the previous year, which saw record profits.

The country’s main electricity producer attributed the drop to a one-off profits tax introduced as energy prices rose.

In 2022, the company’s profits soared thanks to a huge price hike caused by the Russian invasion of Ukraine, higher profits from commodity trading in foreign markets, and high operational reliability of its power plants.

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