CEZ released its consolidated 9M 2003 IFRS figures on Friday. A y-o-y comparison of the 9M consolidated results is biased by CEZ’s acquisition of several regional distributors in April 2003. Unlike the H1 2003 results, Severoceska energetika’s (CEZ owns 51% in SCE) results are fully consolidated in the 9M results.
Both sales and operating expenses exceeded our expectations, possibly due to lower intra-group sales. The y-o-y increase of sales reflects the enlargement of the CEZ group and increased domestic volume sales (reflecting a higher market share), and rising exports, which more than offset a y-o-y decrease of domestic wholesale prices on the back of continuing sector liberalization.
While EBITDA was slightly higher than we expected (the EBITDA margin was 36.6%), EBIT was in-line with our expectations due to higher-than-expected depreciation as the second unit of JETE started commercial operation in April 2003.
The financial result and the bottom line were significantly influenced by the profit realized on CEZ’s divestiture of a 66% stake in CEPS, the national transmission-grid operator.
Overall, we see the results as neutral.
IFRS, CZK m 9M 2003 9M 2002 % change
Sales 58,046 39,543 n.m.
EBITDA 21,252 16,445 n.m.
EBIT 9,158 8,348 n.m.
Pre-tax income 19,448 9,320 n.m.
Net income 13,345 6,525 n.m.
Min. and eq. 144 0 n.m.
Net income 13,201 6,525 102.3%
EPS (CZK) 22.30 11.02 102.3%