During the conference call to 4Q12 Results, CFO Novak said that EBITDA guidance could improve of about 2 bln. CZK in case of successful outcome of lignite contract negotiation with Czech Coal (which seems to be almost done). /NEUTRAL; The impact is in-line with our quick estimate after management has mentioned this option during press conference and stock has partly recovered after that. We expect NI could therefore improved of 1 bln. CZK to 38 bln. CZK for FY2013.
CEZ reduced its plan to build new wind farms in Romania by two thirds, citing uncertainty over the country’s renewables incentive scheme and higher funding needs for projects in the Czech Republic. The company plans to build as much as 300 megawatts of wind farms by 2016 in Romania, compared with a previous plan of about 1 000 MW. / CEZ finished a 600 MW wind farm project in Fantanele and Cogealac in eastern Romania, the biggest onshore wind farm in Europe, last year to benefit from a renewables incentive scheme in the country. Romania will scale back renewable-power subsidies to limit electricity-price increases for consumers by changing its incentive program in July or at the beginning of next year, Minister-Delegate for Energy Constantin Nita said in an interview yesterday. It intends to cut the maximum value of so-called green certificates granted for clean-energy generation, he said. Slightly NEGATIVE as CEZ earned 2.5 bln. CZK on EBITDA level in Romania in 2012 and this earnings additions could be lower since 2014 and beyond.