CEZ has denied reports that its talks with the German utility E.ON regarding a swap of minority stakes in Czech distributors are stalled.
Considerable market speculation and even conflicting information regarding the swap might be expected; nevertheless, this is unlikely to impact upon CEZ stock.
Separately, the Ministry of Industry yesterday disclosed six scenarios of the Czech Republic’s long-term energy-sector policy. One scenario is to be chosen by Cabinet by the end of June and should be discussed by the government by year-end. A leading scenario calls for a dominant role for domestic power generation, i.e., only limited imports, and supports mostly nuclear and brown-coal-powered generation. This may reportedly include a significant capacity increase at the Temelin nuclear power plant by approx. 2030 (Temelin was originally projected to have four reactors; two have been constructed and are online).
We see this as neutral until the plan is approved, with a detailed budget provided (capex and related expenses, including projected decommissioning and spent fuel storage costs).
Jan Hájek