The Czech Press Agency reports that CEPS (the transmission-grid operator, 100% owned by CEZ) had a net profit of CZK 231 mil. in 2001 (after a loss of CZK 711 mil. in 2000). CEPS’ profit should be around zero in 2002 as 2001’s performance was extraordinarily influenced by a one-off item.
Separately, the Czech Press Agency reported that Minister of Industry Deputy M. Vlasakova met with representatives from Iberdrola concerning direct CEZ privatization. Similar meetings were held with Electricite de France, International Power, and RWE. E.ON and Enel have also expressed interest in a direct sale. Also, the minister of industry, M. Gregr, denied that CSFB is representing his ministry in the CEZ privatization. Although there seems to be significant effort to complete the privatization soon, we believe it is unlikely to be completed before the general elections in June; it seems that this is the majority view on the market as well.
(Jiri Soustruznik)