CEZ will report a limited set of its consolidated IFRS Q1 2004 figures this morning. Since the Q1 unconsolidated CAS figures and results of the majority-owned distributors have already been released, these are of limited importance. The y-o-y development of the consolidated figures is influenced by (i) the acquisition of the 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 (a reflection of rising wholesale electricity prices) is accompanied by higher domestic volume sales (+22% y-o-y), which more than compensate for lower export volumes (-23% y-o-y) in terms of nominal sales and profits in electricity generation. This, together with improving sales and margins in the distribution segment, has resulted in a significant y-o-y improvement in consolidated performance.
Separately, Standard&Poor has assigned BBB+ long-term debt ratings to CEZ’s EUR 300-400m bond issue (maturity of between 5 and 7 years) that should be placed this week. The rating on the bonds is the same as CEZ’s ratings.
Jitka Oppitzová