Net (consolidated) profit of CEZ Group for the first half of this year increased by 41 per cent to 16.4 billion CZK

The CEZ Group reached the net profit of 16,433 million CZK for the first half of this year, which constitutes growth by almost 41 per cent as against last year. The increase results from the rise of trade margin, growth of the volume of sold and distributed electricity by almost one third, cost savings due to integration of CEZ Group and extension of the Group by the Romanian distribution firm Electrica Oltenia and recently by two Polish power plants (they affected the results only with one month). Also the first foreign acquisition of CEZ Group involving three Bulgarian distribution companies shows improved results. While revenues have grown, CEZ managed to keep the fixed costs under control.

The operating results indicate a very good condition of the company, particularly on the operation level. Our completed foreign acquisitions have been reflected positively in the result ever more. In addition to the Bulgarian and Romanian distribution companies, this year we acquired two Polish power plants Elcho and Skawina. It is a good basis for further improvement of the results that will be affected also by so far the last successful acquisition of the power plant in Varna, said Martin Roman, the Chairman of the Board of Directors and the CEO of CEZ.

In the first half of this year, power generation in power plants of CEZ Group reached 31.9 TWh and increased by 4.3 per cent as against last year. Historically, it is the highest production of CEZ Group in the first half of a year. Sale of electricity on the wholesale market in the Czech Republic has grown by 6.3 per cent. Increased demand arose especially from economic growth and only for the minor part from climatic influences.

In the Czech Republic, electricity demand has grown by 4.3 per cent compared to last year. After deducting the effect of colder weather in the first half of this year when the average temperature was 1.1 degree Celsius lower than last year, the increase would amount to 3.5 per cent.

At the end of June, the number of employees of CEZ Group was 30,560, which is almost three thousand up on last year and results from extension of CEZ Group by new companies. Without that, the number of employees would be reduced by 710 workers as against last year.

Net profit for the whole this year is expected to be in the region of 28 billion CZK which is the level when we increase the value of the shareholders' investments. Last year it happened for the first time since the company establishment. It is not possible to measure profit according to the absolute amount but only according to the invested property which is manifold higher in power engineering companies due to power plants and networks than in companies operating in other fields. CEZ Group property exceeds 350 billion CZK, said Petr Voboril, Director of Finance Division.

Ladislav Kriz, Press Officer, CEZ

15. 8. 2006