CEZ Group

EBITDA reached CZK 64.3 bn and remained almost unchanged year on year (down by CZK 0.2 bn). The CEZ Group has not changed its expected operating results for the entire year, with EBITDA expected to reach CZK 81 bn. Net Income declined by CZK 1.6 bn to CZK 31.7 bn in a y-o-y comparison. The main factor behind this decline were adjustments to assets created due to regulatory and legislative interventions in the European energy sector and also due to the ongoing trend of declining wholesale prices of electricity. For the same reasons, the CEZ Group has adjusted its all-year Net Income outlook to CZK 35 bn.

The Supervisory Board of ČEZ has today discussed and acknowledged Martin Roman’s resignation from his offices of member and chairman of the Supervisory Board. Then the Board co-opted Michal Mejstřík and Jan Mareš as its new members. Thus, the Supervisory Board now has all member offices filled. Václav Pačes, its Vice-chairman, is going to chair the Board until a new chairman has been elected.

The CEZ Group joins the Big 3 mobile operators with a more flexible and transparent offering. Mobile by ČEZ has been designed for those who seek attractive tariffs and services yet do not want to be bound and have to pay for what they do not use - from now on you can say no to fixed-term price plans and additional fees! Moreover, the existing customers of ČEZ Prodej (ČEZ Sales) can send short messages within the ČEZ network completely for free, and they can share this benefit with up to three of their friends.

On October 14 2013, during an official ceremony in Barcelona, Spain, CEZ Bulgaria EAD was awarded with a Silver Stevie Award in the ‘Human Resources’ category.

The Polish Chorzów ELCHO power plant, belonging to the CEZ Group, the most modern and environmentally friendly power and heat producer in Silesia, is going to supply more heat to the citizens of Katowice and Siemianowic Śląskich.

EBITDA rose by CZK 0.9 bn (1.9%) year on year to CZK 49.2 bn. Net Income grew by 5.3% y-o-y to CZK 28.6 bn. The CEZ Group has not changed its expected results for the entire year; EBITDA is expected to reach CZK 81 bn and Net Income CZK 37.5 bn. The main factor behind the y-o-y Net Income growth was the end of operations in Albania, correction factors for distribution in the Czech Republic, and trading in emission allowances. Negative factors included in particular declining electricity prices, a lower quantity of emission allowances allocated for production, and the overall uncertainty concerning the future direction of the energy sector.

ČEZ has received a letter from the European Commission in which the Commission approved the sale of the Chvaletice power plant to Litvínovská uhelná. There are no more obstacles that would prevent the power plant from being handed over to the new owner on September 2, 2013. This will also put a definite end to the investigation of ČEZ conducted by the European Commission.

ČEZ today notified the Albanian party of its decision to seek compensation for damage incurred due to its non-protected investment in the power distribution company of CEZ Shpërndarje, with the International Arbitration Tribunal according to the Energy Charter Treaty.

The Net Profit was up by 24 percent year on year (CZK 3.5 billion), reaching CZK 17.9 billion, which is the second best result ever recorded by the ČEZ Group in the first calendar quarter. Operating Profit Before Depreciation (EBITDA) rose by CZK 2.1 billion year on year (up by 8%) and ended at CZK 28.3 billion. The primary factor that contributed to the year-on-year profit growth was the termination of business activities in Albania combined with extraordinary profits from trading in emission allowances, and also Energotrans’ integration in the ČEZ Group. Thus, the ČEZ Group has so far successfully compensated the adverse trend of declining electricity prices and the unfavorable developments in the European energy sector.

ČEZ has selected the highest offer it had received in its process to divest some of its coal-fired power plants. Today, ČEZ signed a contract to sell the Chvaletice power plant to Litvínovská uhelná a. s. The selling price is CZK 4.12 billion. Moreover, ČEZ will annually obtain 90% of the market value of CO2 emission allowances allocated for free to the Chvaletice power plant, which will then be used to further upgrade its power plants. This concerns 5.3 million tons of allowances in a total value of some CZK 450 million in their current prices. The signed contract does not cover any coal supply arrangements with ČEZ. The European Commission now just needs to confirm that the buyer, Litvínovská uhelná a.s., is sufficiently qualified.