CEZ has incorporated Romanian distribution company Electrica Oltenia into its group and now controls 51% of the company. Electrica Oltenia is the largest of the eight Romanian distributor companies, with a 19% market share. CEZ paid EUR 47.4mn for a 24.6% stake and EUR 103.6mn for an increase of its stake to 51%. Electrica Olternia will be consolidated in 4Q2005. We estimate that Electrica Oltenia will add 8.5% to consolidated 2006 sales and 3% to EBITDA. CEZ also bidding for a 67.5% stake in distribution company Electrica Muntenia Sud, which servers 1,075m customers in the capital, Bucharest, and neighboring counties Ilfov and Giurgiu.
Oltenia, In EUR millions 2003 2004 2005E
Revenues 361 399 427
EBITDA -17 70 60
EBIT -119 49 30
Net profit -58 46 27
Net debt (debt - cash) 1 1 0
Average No. of employees 2,960 2,930 2,900
No. of customers 1,364,901 1,371,398 1,378,255