CEZ will release its 3Q unconsolidated IFRS figures on Monday, October 31. Despite the 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 are 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 was in 2Q 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 distribution companies, of CZK4.0bn vs. last year’s CZk1.7bn.
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