CEZ will release its 3Q unconsolidated IFRS figures today, October 31 at 10:45am CET. Despite 3Q being seasonally the lowest in terms of electricity sales, we expect the top line to be positively affected by higher electricity prices. Rising prices with relatively stable total volumes sold will be directly reflected in the higher EBITDA and EBIT margin. In addition, we expect 3Q operating margins to expand versus 2Q2005 due to the higher capacity utilization of NPP Temelin and lower cost power plants. The operating performance of NPP Temelin in 2Q was impacted by the shutdown of one block, which was shut in 2Q for maintenance (three months), and faults in the second block. Net income for the 9M period should be positively impacted by dividends from CEZ’s subsidiaries, in particular the distribution companies, of CZK 4.0bn vs. last year’s CZK 1.7bn. A conference call will be held today at 5:15pm CET (4:15pm UK). Dial-in no.: +44-207 162 0125.
IFRS unconsolidated (CZK m) 9M05E 9M04 % change Consensus
Sales 48,620 45,759 6.3% 49,420
EBITDA 25,088 19,125 31.2% 25,090
EBIT 14,984 9,838 52.3% 14,980
Pre-tax income 16,872 13,601 24.0% -
Net income 14,288 9,949 43.6% 13,830
EPS (CZK, annualized) 32.2 22.4 43.6% 31.1
Separately, CEZ is bidding together with British Bancroft Private Equity for a state stake of at least 10% in Polish black coal mine Katowicki Holding Weglowy (KWH). Due to coalition talks the government might cancel the tender. CEZ is also bidding for Polish black coal power plant Kozienice and it is interested in another important power plant, PAK.