- CEZ’s FY 2004 results were ahead of the market’s expectations by at all levels. Net income surpassed the consensus by 8%.
- CEZ’s FY2004 unconsolidated figures show a performance of the electricity generation business, which is the main component of CEZ’s total value.
- Y-o-y comparison below EBIT not meaningful due to one off items (e.g. disposal of 66% stake in CEPS, PRE, CEZ’s headquarters)
- As expected, results showed a strong improvement on the top line due to higher average yield per MWh sold
- Higher sales were influenced by increasing electricity prices and higher volume of domestic sales (due to increased control over distribution companies) offsetting lower exports
- EBITDA positively impacted by increased yield per MWh sold and higher operating efficiency (higher proportion of electricity generated in NPP) despite increased costs of electricity purchases on the back of NPP Temelin’s cut offs (1H2004)
- Pre-tax impacted by one off loss of CZK 1.1bn related to revaluation of derivatives (booked in 1Q) and divestment of minority stakes.
- More details will be available at today’s analysts meeting at 10.00am CET
- On the back of strong FY 2004 were revising our recommendation and fair value.
|
CAS unconsolidated (CZK m)
|
|
|
2004
|
% change
|
2004
|
Consensus (Bloomberg)
|
|
Sales
|
62,290
|
14.1%
|
60,907
|
62,000
|
|
EBITDA
|
-
|
-
|
22,770
|
23,500
|
|
EBIT
|
11,200
|
29.9%
|
10,388
|
11,000
|
|
Pre-tax income
|
-
|
-
|
15,624
|
-
|
|
Net income
|
12.,360
|
-11.3%
|
11,425
|
11,700
|
|
EPS
|
20.9
|
-11.3%
|
19.3
|
19.8
|