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Business performance of the electricity producer CEZ, a. s. in the first half-year of 2000

8. 8. 2001

Others

Business performance of the electricity producer CEZ, a. s. in the first half-year of 2000

In the first half of this year the CEZ joint-stock company succeeded in cutting down its costs by 802 million CZK, in comparison with last year, and also managed to increase its total revenue by 923 million CZK up to 30.9 billion CZK. Profit after taxation increased by 1.6 billion CZK (i.e. by more than 52.1%) and totalled 4.6 billion CZK, which was due to increased revenues, reduced costs and lower income tax.

 

Total revenue 30,909  (in mil. CZK)
Revenue for electricity 25,636  (in mil. CZK)
Total costs 25,212  (in mil. CZK)
Fuel 6,847  (in mil. CZK)
Profit before taxation 5,697  (in mil. CZK)
Profit after taxation 4,632  (in mil. CZK)
Note: These figures were calculated according to Czech accounting standards and have not been audited.

Resources generated by CEZ as a percentage of total electricity demand in the Czech Republic
I.-II. Q 2000 56.4%
I.-II. Q 2001 57.1%

CEZ a. s. managed to halt the trend of decreasing its share in meeting total electricity demand in the Czech Republic, for the first time since the mid 90s

In the first half of this year the CEZ joint-stock company succeeded in cutting down its costs by 802 million CZK, in comparison with last year, and also managed to increase its total revenue by 923 million CZK up to 30.9 billion CZK. Profit after taxation increased by 1.6 billion CZK (i.e. by more than 52.1%) and totalled 4.6 billion CZK, which was due to increased revenues, reduced costs and lower income tax. Total net profit amounted to 6.9 billion CZK (+ 37.9%), according to International Accounting Standards (IAS).

"I am particularly pleased with the fact that we succeeded in reversing the trend of the past few years, during which our share in satisfying the total electricity demand in our country had been gradually decreasing,? says Jaroslav Mil, the Chairman of the Board of Directors and the General Manager of CEZ, a.s. The electric power producer CEZ proved to be able to stand up to competition and retain its prominent position in the Czech market," adds Mr. Mil.

New company management, which has just entered the second year of its mandate, thus successfully fulfilled its principal objective, which was increasing the efficiency of the company. This year's gross production output should increase by 42%, compared to 1999, up to 547 MWh/month/person. Also added value produced by one employee is estimated to increase by one quarter (i.e. by 288 thousand CZK per one person and day), compared to last year.

The corporate rightsizing of CEZ, a.s. did not have any drastic social impact; the total numbers of company staff were reduced from 9,111 (30.6. 2000) to 7,995 (30.6. 2001), i.e. by 1,116 people (-12.2%).

CEZ, a.s. concluded agreements with all regional distribution companies. The demand for electricity in the Czech Republic increased by 693 GWh (i.e. 2.6%) compared to the last year, and reached the level of 27.5 TWh. The company sold 19,002 GWh to regional distributors, which translates into an annual increase by 400 GWh (i.e. by 2.1%).

Discussions are now held with E.ON, who asked for terminating the existing contract; the contracted supply of electricity to this customer was discontinued on July 1. However, it is assumed that the termination of this contract will not reduce the planned production output of CEZ, a.s., taking into consideration the growing domestic electricity demand and the export potential of CEZ, a. s.

 

Ladislav Krizpress, spokesman of CEZ