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CEZ Hungary News CEZ Group Net income of CEZ Group (without minority shares) in the first three quarters of this year increased by 44 per cent to 22bn CZK

2006. 11. 15.

Net income of CEZ Group (without minority shares) in the first three quarters of this year increased by 44 per cent to 22bn CZK

The growth was influenced by historically highest production, increase in electricity sales, cost economies under the integration of CEZ Group and foreign acquisitions, the year-on-year contribution of which almost trebled. Stronger exchange rate of the koruna had a positive effect as well. While revenues were growing, operating expenses costs were successfully kept under control.

More and more do the results reflect our foreign acquisitions that have already been realized. After acquisitions of Bulgarian and Romanian distribution companies, two Polish plants, Elcho and Skawina, have been added to our group this year. We are also glad that the admission of our shares at the Polish stock exchange went through far better that expected, and roughly 10 per cent of trades with our shares are conducted through this exchange. The fact that our shares have been newly rated among the elite at the Warsaw Stock Exchange and have become a part of WIG 20 index points to the success. The profit of 22bn CZK may seem large to some people, however, if compared to CEZ Group´s total capital of over 350bn CZK, it looks different. Even our capital expenditures have been enormous this year. We have placed more than 36bn CZK into property and financial investments, said Martin Roman, Chairman of the Board of Directors and CEO of CEZ.

The electricity production in CEZ Group power plants amounted to 47.8 TWh in the first three quarters of this year and was 7.1 per cent up on the previous year. The production in the Czech plants reached 46.5 TWh and represented the highest-ever generation in that period. It was mainly production in nuclear power plants which rose, namely by 11 per cent.

The electricity demand in the Czech Republic increased by 4.3 per cent compared to the previous year due to the economic growth, and only partly due to temperature effects; the rise deducted by the influence of the cold weather this year would be 3.9 %.

There were 30,464 employees in CEZ Group as of the end of September, which represented a year-on-year increase of over three thousand, which was, however, given by CEZ Group´s enlargement by new companies. If it had not been for this influence, the number of employees would have fallen compared to the previous year.

Net profit for the whole year should be around 28.5bn CZK, which is 0.5bn CZK more than our mid-year estimate, said Petr Voboril Chief Finance Officer.

Ladislav Kriz
Press Officer, CEZ

Table: Economic results of CEZ Group for quarters 1-3 2006

 

(million CZK)   

year-on-year change

Operating revenues

113 710

+ 27,2 %

Operating costs

83 769

       + 26,5 %

Operating profit

29 941

+ 29,0 %

Pre-tax profit

28 435

+ 42,7 %

Net profit

22 019

+ 44,2 %

Note: non-audited consolidated results