CEZ said that it will start selling non-core assets, mainly property starting next year. The value of the assets marked to sell was not specified, CEZ’s spokesman mentioned several billions. We believe that the decision comes on the back of restructuring of CEZ and integration of the distribution companies, which should made several real estate asset redundant. We see the decision as positive as the CEZ should reduce its maintenance costs while boosting its cash flow. CEZ follows Cesky Telecom’s decision to sell its real estate assets and to lease back some of them. As the sale boosts CEZ’s cash flow and the market may speculate about dividend increase on the back of the news, it may have a positive impact on CEZ’s trading, nevertheless, we reiterate our Hold recommendation.
Separately, NPP Dukovany will shut down its one unit on March 11 due to planed maintenance and fuel change. The block will be disconnected for 33 days. NPP plans to deliver record electricity production this year about 14,000 GWh compare the last year 13,700 GWh.