The 9M2004 IFRS consolidated results were better than forecasted at all levels except sales, which were in line. Nevertheless, since the 9M2004 unconsolidated figures (power generation and distributors) have already been released, the consolidated figures are of limited importance. In addition, the y-o-y comparison is significantly influenced by the changes in the CEZ group’s structure (the acquisition of the five distribution companies and the sale of CEPS) and the consolidation method of the distributors. CEZ also changed its accounting methodology for the sale of the 66% stake in CEPS in 2003, which led to a revision of the 9M2003 results.
Nominal sales in the electricity generation sector, the major component of CEZ’s total value, showed a strong growth due to rising domestic electricity prices and higher domestic sales volume, which more than compensated for lower export volumes. The EBITDA margin increased to 39.2% from its previous 36.6% due to a higher yield per MWh sold and a higher proportion of electricity being generated at low-operating-cost nuclear plants.
The increase in wholesale electricity prices was reflected in an increase in the end-tariffs of the distributors, which led to their higher sales (CEZ owns five out of eight domestic distributors). Restructuring at the distributors led to rising operating margins, which together with rising sales had a positive impact on the EBITDA and EBIT margins.
Tomáš Gatěk, Patria Finance