CEZ reported its consolidated IFRS Q1 2004 results yesterday. These were of limited importance as Q1 unconsolidated CAS figures and results of majority-owned distributors had already been released a month ago. The figures were in line with our estimates at the operating level and confirmed y-o-y improvement at all levels influenced by (i) the acquisition of regional distributors in April 2003 and (ii) significantly improved market conditions in the Czech Republic and the region. With regard to the latter, increasing average revenue per MWh sold by CEZ is accompanied by higher domestic volume sales, which more than compensate for lower export volumes in terms of nominal sales and profits in electricity generation. This, together with improving sales and margins in the distribution segment, resulted in a significant y-o-y improvement in CEZ’s consolidated performance; net income exceeded our forecast by 7%.
IFRS, CZKm Q12004 Q1 2003 change
Sales 27,670 15,835 74.7%
EBITDA 12,860 7,784 65.2%
EBIT 8,280 4,644 78.3%
Net income 5,250 3,337 57.3%
EPS (CZK) 8.87 5.64 57.3%
In a separate matter, Slovak Economy Minister, P. Rusko, reiterated yesterday that Cabinet would give preference to those bidders for Slovenske elektrarne interested in completing the Mochovce nuclear power plant. Remember that three of the five bidders (including CEZ) are interested in both nuclear and non-nuclear parts of SE; the deadline for binding bids is July 21.