According to Reuters,CEZ plans to increase its Bulgarian production of electricity in 2007 by 34% y/y to 4 TWh. CEZ owns TPP in Varna with installed capacity of 1,260 MW.
Our view:
Due to the amount of planned investments of CZK 10bn (some EUR 350m) over the next 8 years,we see increases in production as an obvious fact. Nonetheless we currently predict TPP Varna production to increase by 28% y/y to 3.8 TWh in 2007 with sales reaching EUR 105.4m. We see the news as slightly positive.