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International economic results of the CEZ Group in 2002

23. 4. 2003

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International economic results of the CEZ Group in 2002

According to the International Financial Reporting Standards (IFRS), CEZ Power Company Group generated a net profit of 8.4 billion CZK in 2002 and 9.1 billion CZK in 2001.

The company profit has been reduced by a number of factors, such as the postponed payment of income tax amounting to 0.6 billion CZK, which reflects this year’s sale of 66% equity which CEZ held in the CEPS company (the operator of a transmission network) and which has thus become state property. The drop was also partly caused by the fact that the domestic electricity market was fully opened for producers. CEZ has so far been very successful in coping with the newly opened market, especially in view of the difficulties that the liberalisation process meant for power companies in Western Europe. The first year of a liberalized market always affects the economy of the major producers, and in the case of CEZ this was further magnified by the fact that the company reduced the prices of its electricity.

Operating profit of the company amounted to 11.3 billion CZK, compared to 14.7 billion CZK in 2001.

Total revenue dropped only by one per cent to 55.6 billion CZK and the total costs went up to 44.3 billion CZK, compared to 41.4 billion CZK in 2001.