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Media Nuclear Power Plant news

31. 10. 2005

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Net profit of CEZ (non-consolidated) for the first three quarters of this year increased almost twice to 13.4bn CZK

CEZ Power Company reached operating profit of 14,959bn CZK in the first three quarters, which represented a year-on-year increase of 60 per cent. Net profit amounted to 13,420bn CZK, which was a year-on-year increase of 94 per cent. The increase in net profit was mainly influenced by dividends received from daughter companies in the amount of roughly 4bn CZK. Company´s revenues rose by 4bn CZK, costs fell by over 1.5bn CZK.

 We are pleased with the fact that we managed to keep a check on our costs during such an outstanding increase in revenues. We reduced significantly repair costs in costs related to electricity production. It was partly influenced by smaller volume of overhauls but also by fuel costs. Development of adjusting entries balance was favourable. The dramatic drop in foreign electricity purchase costs influenced trades volume on the side of sales, however, revenues rose,“ said  as an introduction Petr Voboril, Vice-Chairman of the Board and Financial Manager of CEZ. Creation of financial resources from operation reached 25bn CZK and rose by full 7bn CZK on the previous year. Finances expended on investments (including financial) rose by 3.5bn CZK to 11bn CZK. The rise was mainly influenced by the successful acquisition of the Romanian distribution company Electrica Oltenia.

The electricity production in CEZ power plants reached 44,204 GWh in the first three quarters of this year. Coal-fired power plants still produced the most electricity, they accounted for 56 % of the total production. The production in nuclear plants reached 41 %. The remaining 3 % were supplied by hydro power plants and other renewable resources.

The rising electricity demand in the Czech Republic has increased electricity sales of CEZ in the country by 2.3 per cent, when export has fallen on the other side. „We are going to concentrate on the domestic market in the following years. We estimate the sales in the country to increase, while we allow for continuing decrease in exports. We focus on that and we have already secured exports to the area of South-Eastern Europe,“ said Alan Svoboda, Vice-Chairman of the Board and Sales Director of CEZ.

The results being introduced are non-consolidated, but even CEZ Group´s daughter companies are reporting very good results. The first successful foreign acquisition of CEZ, three Bulgarian distribution companies, attracts special attention. The period of less than a year, since the local distributors have been a part of the CEZ Group, has brought some virtual changes. Radomir Lasak, member of the Board and director of Divize správa (Administration Division) commented on the situation in Bulgaria as follows: „Inspections in the companies were done faster than we had expected.  Activities coordination between local distribution companies has already brought first economies of tens of per cent and a year-on-year increase in profit is approaching 50 per cent. Electrical energy losses have been reduced by about 10 % by all three distributors. Our distribution companies were first to be licensed for power trading on the free trade in Bulgaria.“

Table: Economic results of CEZ (non-consolidated) for the 1st – 3rd quarter of 2005 

                                                                                                          (million CZK)                    year-on year change                              

Operating revenues

- electricity incomes

49 750

48 133

+ 8,9 %

+ 9,0 %

Operating costs

34 791

- 4,2 %

Operating profit

14 959

+ 59,7 %

Pre-tax profit

16 203

+ 79,2 %

After-tax profit

13 420

+ 93,9 %

Note.: according to the international accounting standards

Ladislav Kriz, Press Officer, CEZ