CEZ will report its 9M05 consolidated IFRS figures on Wednesday. The company already reported its 9M05 unconsolidated numbers, at the end of October. Q3 is traditionally characterised by the lowest sales; nevertheless, we expect the company to benefit from rising electricity prices. Continued restructuring should also support operating efficiency.
IFRS consolidated (CZK m) 9m05E 9m04 % change Consensus
Sales 87,314 73,061 19.5% -
EBITDA 35,301 28,664 23.2% -
EBIT 20,792 15,130 37.4% -
Pre-tax income 18,515 14,241 30.0% -
Net income 14,248 10,204 39.6% -
EPS (CZK, annualised) 32.1 23.0 39.6% -
A cross-Border capacity auction will take place on 29 November. The capacities should be similar to this year’s, with more capacity being available for Hungary. CEZ is becoming less dependent on exports, due to increasing domestic sales and the introduction of CO2 credits, which squeeze margins. In addition, CEZ focuses on exports to CEE markets, where CEZ acquired distribution & supply companies. In 2005, CEZ plans to export 12-13 MWh, compared to 16 MWh in 2004.
The Antimonopoly Authority approved CEZ’s acquisition of Severoceske doly coal mines, which was widely expected.
CEZ started the liquidation of the Tusimice I power plant. The expected liquidation costs are CZK 75m. For March 2007, CEZ plans the modernisation of the Tusimice II power plant. By 2020, CEZ will have renewed 12 brown-coal power plants. Modernisation depends on coal accessibility in upcoming decades.