Hurricane Kyrill that crossed over Czech Republic last week caused damages to ČEZ around CZK 83.2m (CZK 0.14 per share or EUR 0.005 per share). ČEZ has insurance for very high and high voltage line, but it lack insurance for low voltage line. Insurance will cover approximately 70% of the total damage. Interruption of energy supply impacted more than one million customers and during the most critical time there were 27% customers without electricity.
Our view:
CEZ will only have to pay around 30% of the total damages since the biggest damages affected very high and high voltage line and that is covered by the insurance therefore we do not have any expectation for change in stock price today.