The year-on-year sales growth enjoyed by the ČEZ Group can further be attributed to a greater output of the wind turbines in Rumania and a power generation capacity growth in the Czech Republic (up by 1.4 TWh or 4%) to 33.2 TWh. This primarily stems from a higher power generation level after the Tušimice power plant overhaul and upgrade was completed. The ČEZ Group's results were also positively influenced by the settlement of its past-due receivables from the Rumanian State Railways (CFR) at CZK 965 million.

On the other hand, the year-on-year EBITDA figures were negatively affected by the Albanian regulator's decision on the tariffs and conditions of business for the power distribution company in the country and the growth of the market prices of electricity imported to Albania to cover the loss. Nevertheless, we succeeded at obtaining a new decision from the regulator, which reduced the input price of electricity purchased from the state-owned KESH power stations from 2,830 to 2,200 ALL/MWh with retroactive effect on electricity supplied since January 1, 2012. Moreover, a study has been approved that defines a more objective method of calculating the initial amount of the distribution company's bad debt in line with an independent analysis.

"The ČEZ Group maintained its strong position in terms of liquidity, enjoyed a good financial health, and is therefore a crucial pillar of the Czech economy. On August 1, we started to distribute dividends to our shareholders from the profit of 2011; they total CZK 24 billion," said Martin Novák, Vice-Chairman of the Board of Directors and Chief Financial Officer of ČEZ, a. s.

In mid May we completed a project of increasing the installed capacity of the Dukovany Nuclear Power Plant (from the original 4 * 440 MW to 4 * 510 MW); however, its positive effect on the amount of power generated in the second quarter was eliminated by the related longer down times. ČEZ also reached an agreement with the European Commission on putting an end to its investigation by means of settlement. As part of the settlement, ČEZ, a.s. is going to divest one of its coal power plants in the Czech Republic with an installed capacity over 800 MW. "In this manner, ČEZ will eliminate a risk of costly proving that it has not engaged in any unfair competition. At the same time, the sale will be consistent with its own strategy of coal source development, i.e. to operate just upgraded low-emission power plants with secured fuel supply," said Pavel Cyrani, Strategy Division Director with ČEZ, a.s.

The ČEZ Group continues to fulfill its five strategic initiatives; the one with the highest priority is to complete two new blocks of the Temelín Nuclear Power Plant. On July 2, 2012, ČEZ, a. s. received bids from three qualified bidders who had fulfilled the requirements for envelope opening stipulated by the Public Contracts Act. "We would like to select the winner by September 2013 and by the end of that year we want to have the contract signed with them," confirmed Daniel Beneš, Chairman of the Board of Directors and Chief Executive Officer of ČEZ, a.s..

Table: The ČEZ Group's financial performance over the 1st half of 2012