After releasing selected Q1 figures last Wednesday, CEZ released complete Q1 unconsolidated CAS and consolidated IAS results on Friday.
We believe that the CAS figures in coming quarters will gain in importance as they will not be distorted by transactions related to CEZ’s recent acquisition of stakes in regional power distributors from the state.
Reported CAS sales were near our projections; we had projected somewhat higher operational costs and depreciation charges, but these was mostly offset by the higher reported financial costs and income-tax.
Importantly, the results confirm that on a y-o-y comparison, 2002 represented the bottom from an operational-cash-flow-generation point of view (note the 11% EBITDA increase), but higher depreciation will depress earnings below the EBITDA level.
CAS, CZK mil. QI 2003 QI 2001 % change QI 2003e
Sales 13,896 13,406 3.7% 13,827
EBITDA 6,491 5,857 10.8% 6,222
EBIT 3,768 3,783 -0.4% 3,133
Pre-tax income 2,658 5,500 -51.7% 2,522
Net income 2,267 5,108 -55.6% 2,017
The consolidated IAS figures (including those of the transmission-grid operator, CEPS) told a similar story, but a rise in sales was accompanied by a decreasing EBITDA margin in Q1 2003.
IAS, CZK mil. QI 2003 QI 2001 % change QI 2003e
Sales 15,835 15,687 0.9% 15,945
EBITDA 7,784 8,102 -3.9% 8,291
EBIT 4,644 5,692 -18.4% 4,586
Pre-tax income 4,548 5,826 -21.9% 4,159
Net income 3,337 5,174 -35.5% 3,327
Given our projections, wee see the results as neutral.
CEZ is to hold a press conference today at 10 a.m. CET; Q1 results and issues related to the acquisition of the regional distributors are to be discussed.
Jiří Soustružník