According to HN daily and newswires, CEZ reiterated on Wednesday during energy conference in Prague its plans to focus on gas power plants in upcoming years. The company previously planned investments of up to CZK 150bn into coal fire plants but currently sees based on launched projects that some CZK 50bn will be redirected into gas power plants mainly due to uncertainty about CO2 credit auctioning after 2012. These plans include gas power plant in Pocerady, Uzin in the Czech Republic , one in Slovakia , Hungary (with MOL) and one in Varna , Bulgaria . CEZ’s Alan Svoboda didn’t confirm speculations about possible sale of standing Pocerady coal power plant, which he sees as a possible scenario in diversifying CEZ’s portfolio but not preferable. Besides Svoboda doesn’t see anticipated slowdown in Western Europe to have impact on the company’s sales.
We don’t see any new material information presented during a conference and see them mostly as a recapitulation of previously announced projects or plans. Current uncertain situation about CO2 credit auctioning after 2012 makes investment decision more complex and company needs to take portfolio approach.