According to CTK, Severoceske doly increased its net income by 31.3% y/y to CZK 2.64bn, which is 6% above our estimate. Revenues for the same period increased by 11.7% y/y to CZK 8.93bn, which is 2.2% above our estimate. Better than expected figures were reached mainly due to increased sales to CEZ as well as to municipals. Mining increased by 2% to 22.216m tons of liginite.
Our view:
Although the figures came better than we expected, the difference is rather small. As CEZ already reported its full-year 2006 figures last Thursday, we don’t expect this to have a trading impact today.