CEZ's Consolidated Quarterly Report on Operational, Economic and Financial Results for 1st Half 2000, in accordance with IAS
- Demand for electricity (15 TWh) increased by 2.3%, from that high voltage consumption including consumption of autoproducers increased by 6.1%, while low voltage consumption lowered by 2.3%
- CEZ´s share in the electricity wholesale market decreased from 72.8% to 64.1%
- Net income, Ke 3.8 bln higher by Ke 3.1 bln (by 434%) due to the fluctuating exchange rate of Ke, as well as changes in the foreign currency portion of the debt
- Maximum load reached 10,128 MW and is by 2% (202 MW) higher than in 1999
- Installed capacity of CEZ power plants 10,145 MW decreased during the 1st quarter 2000 by 6 MW
- The extraordinary general meeting of shareholders in January 2000 confirmed conclusions of both 1999 general meetings
Prague, 2nd May 2000
| Income Statement in Accordance with International Accounting Standards (IAS) | 31 March 2000 | 31 March 1999 | Index 00/99 | |
|---|---|---|---|---|
| Operating revenues | Kč 1,000 | 14,772,566 | 15,203,032 | 97.2% |
| Operating expenses | Kč 1,000 | 10,316,407 | 10,584,767 | 97.5% |
| Fuel | Kč 1,000 | 3,521,402 | 3,381,754 | 104.1% |
| Purchased power | Kč 1,000 | 1,537,604 | 2,138,476 | 71.9% |
| Depreciation and amortization | Kč 1,000 | 2,163,334 | 2,115,332 | 102.3% |
| Operating income | Kč 1,000 | 4,456,159 | 4,618,265 | 96.5% |
| Other expenses (income) | Kč 1,000 | -391,800 | 2,914,229 | x |
| Income before taxation | Kč 1,000 | 4,847,959 | 1,704,036 | 284.5% |
| Income tax | Kč 1,000 | 1,022,342 | 986,922 | 103.6% |
| Net income | Kč 1,000 | 3,825,617 | 717,114 | 533.5% |
| Earnings per share (EPS) | Kč 1,000 | 6.5 | 1.2 | 533.5% |
| Price earning ratio (P/E)* | 1 | 8.6 | 4.6 | 189.8% |
| Return on equity (ROE) net* | % | 7.3 | 6.1 | 119.2% |
| Return on total assets (ROA) net* | % | 4.1 | 3.4 | 118.5% |
| Assets turnover* | 1 | 0.26 | 0.29 | 89.9% |
| Total indebtedness (provisions excluded) | % | 35.6 | 33.1 | 107.6% |
| Long-term indebtedness | % | 22.9 | 22.3 | 102.9% |
| * For the last 12 months | ||||
Revenues, Expenses, Income
Income Statement, Balance Sheet and Cash flow are converted to International Accounting Stan-dards (IAS) from Czech Accoun-ting Principles and may differ sig-nificantly from the same data prepared according to Czech Accounting Principles.
Net income for the period January to March amounted to Kč 3.8 bln, an increase of Kč 3.1 bln (434%) in comparison with the same period of the previous year. This improvement results mainly from fluctuating exchange rate of Kč, as well as from changes in foreign currency portion of the debt.
Total revenues of ČEZ during the first three months amounted to Kč 14.8 bln and were Kč 0.4 bln (2.8%) lower than in the same period of previous year.
Operating expenses amounted to Kč 10.3 bln, and were Kč 0.3 bln (2.5%) lower than in 1999.
Other income amounted to Kč 0.4 bln, in contrary to other expenses Kč 2.9 bln in previous year, i. e. interannual improvement by Kč 3.3 bln. This results, as mentioned, from exchange rate changes, as well as from changes in foreign currency portion of the debt.
Income tax amounted to Kč 1 bln, and remained at the same level as in 1999.
Earnings per Kč 100 share increased from 1.2 Kč to 6.5 Kč due to the higher profit.
Price earning ratio increased from 4.6 to 8.6. This is due to an increase of share price (by 142%) accom-panied by an increase of profit (by 27.5%).
Return on equity ntto rose - as a result of higher increase of profit in comparison with the increase of average capitalization - from 6.1% to 7.3%.
Return on total assets ntto rose from 3.4% to 4.1% due to higher increase of profit in comparison with the increase of average total assets.
Total indebtedness with provisions excluded increased and amounted to 35.6%, long-term indebtedness increased, too and amounted to 22.9%.
The number of employees decreased from 9,266 at the beginning of the year to 9,183 as of 31 March 2000 (by 83 employees), the annual decrease represents 10.4% (1,064 employees) from that ČEPS took 473 employees over.
Sale of Electricity
In comparison with the same period of 1999, electricity sales decreased by Kč 1.6 bln 
(10.9%), but when auxiliary services (invoiced separately from February 2000 to ČEPS, included into “Heat sales and other revenues?) are transferred into electricity sales, the decrease is much lower, only Kč 0.6 bln (4.1%).
Demand for electricity (14,967 GWh) increased by 2.3% (332 GWh), from that high voltage consumption including consumption of autoproducers increased by 6.1% (480 GWh). On the contrary, low voltage consumption as a whole, decreased by 2.3% (153 GWh), especially households consumed less by 2.6% (116 GWh) - partially due to the warmer weather in 2000, commercial consumers less by 1.6% (37 GWh).
ČEZ´s share in meeting demand for electricity in the Czech Republic decreased from 72.8% to 64.1% as a result of higher production of independent producers (by 1,305 GWh, i. e. 26.4%), and higher import by traders (by 95 GWh, i. e. 28.6%). The finished contract for electricity purchase from Elektrárny Opatovice contributed to this lowered ČEZ portion on the market, too. The total sales of ČEZ in the Czech Republic decreased by 1,140 GWh (9.6%). On the contrary, ČEZ increased electricity export by 2,246 GWh (263%).
ČEZ´s installed capacity (10,145 MW) decreased during the period January - March 2000 by 5.67 MW, because ČEZ stopped operation of Štvanice water power plant, now it is operated by its owner, state enterprise České energetické závody.
Investment Program
As a whole, capital investment during the first quarter of 2000 reached Kč 3.5 bln. In comparison with the first three months of 1999 this is a decrease of Kč 0.6 bln (14.1%).
The construction of NPP Temelin continues according to the approved time schedule, the total amount spent during the first quarter was Kč 1.7 bln. The International Atomic Energy Agency (IAEA) mission inspected this power plant in February and stated good level of preparedness for its commissioning. At the beginning of April hot function tests of 1st unit, which controlled all appliances at the level of the normal operational parameters (but without nuclear fuel loaded) were finished successfully.
Financing
During period January - March 2000 ČEZ well and in time fulfilled all its financial commitments.
Net cash provided by operating activities increased to Kč 4.7 bln (by Kč 2.1 bln).
The total cash provided for investing activities decreased by Kč 0.6 bln and reached Kč 3.5 bln, financing activities contributed by Kč 0.2 bln.
In March ČEZ established program for short term securities (promissory notes) with eight banks, the total amount of Kč 9 bln (with Kč 7.5 bln committed).
Other information
In January joint company JVCD (with Vivendi - Dalkia) was established. This joint venture company will be engaged in electricity and heat business in North Moravia region.
The extraordinary general meeting (in January 2000) confirmed con-clusions of both 1999 general meetings and newly negotiated coal purchases and sponsor program for 2000.
| Income Statement in Accordance with International Accounting Standards (IAS) (Kč 1,000) | 31 March 2000 | 31 March 1999 |
|---|---|---|
| Operating revenues | 14 772 566 | 15 203 032 |
| Sales of electricity | 12 852 132 | |
| Heat sales and other revenues | 1 920 434 | 771 402 |
| Operating expenses | 10 316 407 | 10 584 767 |
| Fuel | 3 521 402 | 3 381 754 |
| Purchased power | 1 537 604 | 2 138 476 |
| Repairs and maintenance | 1 016 737 | 948 500 |
| Depreciation and amortization | 2 163 334 | 2 115 332 |
| Salaries and wages | 888 982 | 836 797 |
| Nuclear decommissioning and fuel storage | 255 501 | 255 501 |
| Materials and supplies | 396 121 | 373 377 |
| Costs of ash storage, air and water pollution and environmental claims | 89 796 | 86 399 |
| Other operating expenses | 446 930 | 449 235 |
| Income before other expenses/income and income tax | 4 456 159 | 4 456 159 |
| Other expenses/income | -391 800 | 2 914 229 |
| Interest income | -48 512 | -39 233 |
| Interest on debt, net of capitalized interest | 146 115 | 170 354 |
| Exchange rate losses (gains) | -320 127 | 2 804 852 |
| Other expenses/income | 29 737 | 142 455 |
| Equity in earnings of affiliate | -199 013 | -164 199 |
| Income before income tax | 4 847 959 | 1 704 036 |
| Income tax | 1 022 342 | 986 922 |
| Net income | 3 825 617 | 717 114 |
| Cash Flow in Accordance with International Accounting Standards (IAS) (Kč 1,000) | 31 March 2000 | 31 March 1999 |
|---|---|---|
| Cash as at 1 January | 4 356 956 | 1 007 232 |
| Operating activities: | 4 685 973 | 2 622 969 |
| - Income before income taxes | 3 825 617 | 717 114 |
| - Depreciation and amortization | 2 165 203 | 2 137 752 |
| - Amortization of nuclear fuel | 413 655 | 419 615 |
| - Provision for nuclear decommissioning and fuel storage | 74 655 | 76 637 |
| - Changes in assets and liabilities | -1 668 552 | -591 956 |
| Investment activities | -3 450 562 | -4 016 962 |
| Financing activities | 232 805 | 2 776 759 |
| Cash as 31 March | 5 825 172 | 2 389 998 |
| 31 March 2000 | 31 March 1999 | |
|---|---|---|
| Net electricity generation in the Czech Republic (GWh) | 19 012 | 16 310 |
| Electricity generation at ČEZ - net (GWh) | 12 693 | 11 292 |
| Electricity sold by ČEZ in the Czech Republic (GWh) | 10 707 | 11 847 |
| - Electricity sold by ČEZ to REAS (GWh) | 10 482 | 11 828 |
| - Price of electricity sold to REAS (CZK/MWh) | 1 036 | 1 144 |
| - dtto incl. auxiliary servicies | 1 106 | 1 075 |
| ČEZ´s share on supply of electricity in the Czech Republic (%) | 64,1 | 72,8 |
| ČEZ´s electricity export (GWh) | 3 100 | 854 |
| ČEZ´s electricity imports (GWh) | 286 | 402 |
| Balance Sheet in Accordance with International Accounting Standards (IAS)(Kč 1,000) | 31 March 2000 | 31 Dec 1999 |
|---|---|---|
| Assets | 210 404 392 | 207 059 085 |
| Fixed assets | 195 707 447 | 194 626 391 |
| Plant in service | 164 348 232 | 163 973 512 |
| Less accumulated provision for depreciation | 75 939 547 | 73 983 232 |
| Net plant in service | 88 408 685 | 89 990 280 |
| Nuclear fuel, at amortized cost | 4 856 672 | 4 913 533 |
| Construction work in progress | 93 997 647 | 91 459 756 |
| Investment in affiliate | 5 550 363 | 5 351 350 |
| Other non-current assets, net | 2 894 080 | 2 911 472 |
| Current assets | 14 696 945 | 12 432 694 |
| Cash | 5 825 172 | 4 356 956 |
| Receivables, net | 4 510 824 | 4 491 744 |
| Materials and supplies, net | 2 262 229 | 2 172 057 |
| Fossil fuel stock | 539 909 | 796 786 |
| Prepayments | 1 558 811 | 615 151 |
| Shareholders´ equity and liabilities | 210 404 392 | 207 059 085 |
| Shareholders´ equity | 117 769 276 | 113 943 659 |
| Stated capital | 59 208 846 | 59 208 846 |
| Retained earnings | 58 560 430 | 54 734 813 |
| Long-term liabilities | 73 159 173 | 76 490 231 |
| Long-term debt, net amount due within one year | 47 288 691 | 51 084 307 |
| Accumulated provision for nuclear decommissioning | ||
| and fuel storage | 16 346 965 | 16 272 310 |
| Deferred income taxes, net | 9 523 517 | 9 133 614 |
| Current liabilities | 19 475 943 | 16 625 195 |
| Short-term loans | 2 628 947 | 2 803 947 |
| Long-term debt due within one year | 6 934 308 | 2 664 961 |
| Accounts payable | 2 591 434 | 4 552 406 |
| Accrued liabilities | 7 321 254 | 6 603 881 |
< ;TD>December 31, 1998
| Consolidated Statement of Shareholders´ Equity in accordance with IAS (CZK m) | Stated Capital | Retained Earnings | Total |
|---|---|---|---|
| 59 208 846 | 49 600 428 | 108 809 274 | |
| Net Income for period 1-3/1999 | 717 114 | 717 114 | |
| March 31, 1999 | 59 208 846 | 50 317 542 | 109 526 388 |
| Net Income for period 4-12/1999 | 4 417 300 | 4 417 300 | |
| Retained loss ČEPS of previous year | -29 | -29 | |
| December 31, 1999 | 59 208 846 | 54 734 813 | 113 943 659 |
| Net Income for period 1-3/2000 | 3 825 617 | 3 825 617 | |
| March 31, 2000 | 59 208 846 | 58 560 430 | 117 769 276 |
| Capacity, Employees | 31 March 2000 | 31 Dec 1999 |
|---|---|---|
| Installed capacity ČEZ (MW) | 10 145 | 10 151 |
| Number of employees (pers) | 9 183 | 9 266 |
| Specific number of employees (pers/MW) | 0,905 | 0,913 |
This report has not been audited.