According to HN daily spot price of electricity reached yesterday on European Energy Exchange (EEX) in Leipzig record highs of EUR 2,000/MWh. This is due to extreme heat in Europe, which forces some Western European countries to reduce their output as cooling systems have problems. CEZ on the other hand managed to sell 170 MW of its surplus at prices close to the record high.
Our view:
These fluctuations on EEX are not exceptional and occur from time to time. Although selling at peak, this particular trade should not have any significant impact on CEZ financials as 170 MW is only marginal in connection to CEZ production. Thus we see this news as neutral and reiterate our Buy recommendation.