CEZ´s net profit falls by 12.3 pct yr/yr to Kc35.2bn in 2013


27.02.2014 09:10

Prague - Net profit of power utility CEZ fell by 12.3 percent year/on-year to Kc35.2bn last year and its operating revenues rose by 1 percent to Kc217.3bn, CEZ told CTK.


Sídlo společnosti ČEZ v Praze - ilustrační foto. ČTK Šulová Kateřina

According to CEZ, the main reasons for the fall of profit include a notable decrease in wholesale prices of electricity owing to support to renewable sources of energy, the economic stagnation in Europe and uncertainty over regulatory conditions in the energy sector.

For this year, CEZ expects to post a profit of about Kc27.5bn.

Operating Profit Before Depreciation (EBITDA) last year decreased by 4.4 percent year-on-year to Kc82.1bn, which was Kc1.1bn above the company's expectations.

For this year, CEZ expects EBITDA to fall further to Kc70.5bn.

"Future discussions in the European Union regarding Europe’s climatic and energy policy until 2030 will be an important indicator of the future developments in the energy sector," CEZ CEO Daniel Benes said.

According to analyst Miroslav Frayer of Komercni banka, CEZ´s results are mostly in line with estimates and fulfilled full-y6_7ear targets. The outlook for net profit and EBITDA for this year is a disappointment, however. Owing to this outlook, Frayer said he perceived the data released today negatively.

"Prices of CEZ shares should follow previous sessions and keep falling," Frayer said.

Owing to deteriorating conditions in the energy sector, CEZ had to create temporary adjustments or write off assets. Last year it created adjustments accounting for 2.7 percent of its fixed assets.

"We continued to upgrade our coal power plants, which has resulted in significant emission and fuel consumption reductions," CEZ said.

CEZ also continued to increase the performance of its nuclear power plants.

CEZ is the biggest Czech power utility. Its majority shareholder is the state, which holds 70 percent of its shares via the Finance Ministry.

CEZ shares are traded on the Prague Stock Exchange (BCPP).

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