Our current predicted all-year results reflect the developments in Albania; we expect the EBITDA to reach CZK 85 billion and Net Profit at CZK 40 billion. Other business activities of the CEZ Group have been developing better than planned despite the economic and debt problems of the European economy; therefore, we expect just a marginal decline of our all-year figures compared to 2011.

Our EBITDA for Q1-Q3 2012 grew by CZK 2.3 billion year on year, in particular due to growing power generation volumes in Romania, the settlement of our receivables from the Romanian Railways, and the revaluation of hedging contracts for power generation in the Czech Republic for the fourth quarter of 2012. Among the negative factors, we need to mention the Albanian regulator’s decision on tariffs and terms of business for the power distribution company in the country. Nevertheless, the effects of “Albania” on cash-flow generation within the CEZ Group were significantly lower than its accounting effects. Over the first nine months of 2012, the CEZ Group generated a total of CZK 53.6 billion of cash by means of its operations, which is CZK 5.2 billion more year on year.

The CEZ Group is preparing to further centralize its shared services into a few smaller companie“The CEZ Group maintains a good financial health with its strong liquid position. The cash generated by our operationshas grown by 11 percent year on year. If it were not for the unforeseeable decisions of the Albanian regulator, then theaccounting results would have been better. Energy corporations in Western Europe feel much more heavily the impactsof the economic crisis and the growing energy sector regulation. With our active measures and the successful sale ofour power for several years ahead, we managed to postpone this impact, but in the years to come we are going to beaffected b y this trend as well. Therefore, we have intensely been looking for ways how to cut costs internally,” said Daniel Beneš, Chairman of the Board of Directors and Chief Executive Officer of ČEZ, a. s., which will allow it to save more than CZK 500 million in costs every year.     

The CEZ Group continues to fulfill its five strategic initiatives, of which the highest priority goes to building two new units of the Temelín Nuclear Power Plant. On July 2, 2012, ČEZ, a. s., received bids from three qualified bidders. On October 5, in accordance with the Czech legislation in force, ČEZ, a. s. disqualified the bid submitted by the French-based Areva due to their failure to fulfill both commercial and also legislative requirements defined for the public contract. “Although the number of bidders has decreased, we still plan to select the winner by September next year and sign a contract with the winning bidder by the end of 2013,” confirmed Daniel Beneš, Chairman of the Board of Directors and Chief Executive Officer of ČEZ, a. s.

Table: Financial Results of the CEZ Group for Q1 – Q3 2012

                                                                                         (CZK billion)        Y-o-Y change in %