PRAGUE (AP) — The 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, 6.4 billion lower than the same period last year.

CEZ attributed the 27.3% decline to lower earnings 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.

It said it expects net profit for the full year to total 26 billion to 30 billion Czech crowns.

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

CEZ’s 2023 net profit was 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 decline to a windfall tax on profits introduced as energy prices rose.

In 2022, the company’s profit soared on an enormous rise in prices caused by the Russian invasion of Ukraine, higher profits from commodity trading on foreign markets and high operational reliability of its power plants.