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The operating revenues of CEZ have increased by 2 billion CZK and have reached 8.4 billion CZK.

1. 11. 2004

Others

The operating revenues of CEZ have increased by 2 billion CZK and have reached 8.4 billion CZK.

The operating revenues of CEZ Power Company increased by 32.2 per cent to 8.4 billion CZK in the first three quarters of this year. The electricity sale incomes increased by 6.6 billion CZK (by 17.6%) and reached 44.2 billion CZK. The economic results of last year were influenced by the single and unrepeatable income from the sale of 66 % share in CEPS, which has been only partly offset by this year´s sales of 34 % shares in CEPS and Prazska energetika. As a result the net profit has decreased by 27.3 % to 9.9 billion CZK compared to last year. If we excluded this influence, the net profit would be higher than last year.

"The economic results for the first three quarters on the operating level, when our operating profit has increased by 2 billion CZK, are the best evidence of the company´s position and are the most important figure for our stockholders. Also these results justify our ambition to become the leader of the Central and East-European electricity market. The success in the privatization of distributional firms in Bulgaria, when CEZ gained the most valuable group, is the first step on this path for CEZ. At the moment we are waiting for the results of the tender for Romanian distributional companies," said as an introduction Martin Roman, Chairman of the Board and CEO of CEZ and continued "We knew, that the profit would decrease purely according to the account sheets, because the single income from the sale of CEPS is unrepeatable. But the operating profit figures are very good. What is gratifying, is the fact that the indexes of productivity, which has risen by 23 per cent compared to last year, continue improving. said Martin Roman, Chairman of the Board and CEO of CEZ CEZ has increased electricity sales by 7.9 % to 46.3 TWh compared to last year. Direct CEZ electricity export has fallen by nearly 5 TWh (by 37 %), when a constituent part of electricity for export (4 TWh) has been sold to inland traders. That is a result of new regulations which require that a subject - exporter - can have only one foreign partner, who meets the requirements of respective transmission system, for a cross-border supply in a given profile. The actual decrease in export would be less than 1 TWh (7.2 %) without this influence. The increase of 7.5 TWh in the inland electricity sales, where only 3.5 TWh is a real increase in supply for the domestic market, has been influenced similarly.

The electricity generation in CEZ power plants has increased by 1.9 per cent to 45.5 TWh. Coal-fired plants have maintained the largest share of the general production, namely 55 % (25.3 TWh). The electricity production in nuclear power plants has reached 18.9 TWh (42 % share of the general production). The electricity production in hydro power plants has reached 1.3 TWh (3 %). The production in wind and solar power plants has risen three times compared to last year and has reached 0.25 GWh.

CEZ has spent 2.8 billion CZK on investments (without financial investments). An important even for CEZ took place in the third quarter, when the State Office for Nuclear Safety rendered a decision about the permission to operate the first and also the second unit of the Temelin Nuclear Power Plant. According to the Atomic Law, their trial operation has been finished. The pre-operation safety report and the inspection of the State Office for Nuclear Safety found all functions reliably secured and found no impediments to switching both units of the Temelin Nuclear Power Plant in operation. The entire power plant inspection, however, is still under way.

The number of employees has fallen by 279 (by 4 %) compared to last year due to the ongoing efficiency measures connected with the firm´s reorganization. CEZ was employing in total 6 615 people as of September 31, 2004, when the figure was 16 407 in 1992, at the time of its birth.

Satisfied stockholders and the performance results are very important for management of every company. "Therefore we are pleased that the price development of CEZ stocks responds to our steps with an increase. The quotation of CEZ stocks has risen by 80 per cent this year. The performance of investors on the stock market indicates that they regard our direction as the right one. I think that stockholders can also be satisfied with the increasing value of their firm. And that is our primary aim," concluded Martin Roman.  

 

Table: Economic Results of CEZ for the 1st - 3rd quarters 2004

                                                                                 (million CZK)           year-on-year

                                                                                                                     change

Total revenues

- electricity incomes

62 203

44 168

- 1,8 %

+ 17,6 %

Total expenses without income tax

48 602

+ 8,5 %

Operating profit

8 360

+ 32,2 %

Pre-tax profit

13 601

- 26,6 %

After-tax profit

9 949

- 27,3 %

Note: non-consolidated figures according to the Czech Accounting Standards

 

Ladislav Kriz, Press Office,  CEZ