At a press conference yesterday, CEZ announced that its 2001 IAS net income was CZK 9.3 bil., i.e., CZK 1.1 bil lower than our forecast. The discrepancy was caused mainly by higher reserves and provisioning (higher maintenance reserves and provisions against receivables from E.ON and Enron). The gross dividend to be paid out of the 2001 profit is expected to be approximately CZK 2.5–3 per share. CEZ expects exports in 2002 to be equal to or higher than in 2001 (12.1 TWh), and export prices to rise. CEZ said that it would use bank loans and possibly bond financing as a financing source for the planned acquisition of state’s stakes in regional distributors.
The stock did not react to the results or the statements; it is likely that the market is waiting for the details of the newly proposed power-sector restructuring plan (CEZ selling 66% in CEPS, the transmission grid operator, and acquiring the state’s stakes in regional distributors). The Cabinet could discuss the plan on Wednesday.
The Czech Press Agency reports that fuel loading of the second reactor of the Temelin nuclear power plant reactor began yesterday, which is in line with the activation schedule.
(Jiri Soustruznik)