CEZ Group

CEZ Group’s Total Sales grew by nearly CZK 12 billion year on year (up by 8%), reaching CZK 162.5 billion. Operating Profit Before Depreciation (EBITDA) rose by CZK 2.3 billion year on year (up by 4%), reaching CZK 64.7 billion. The Net Profit increased by CZK 7 billion year on year (up by 27%) to CZK 33.4 billion. The main cause of the profit growth was a greater volume of power generated in nuclear power plants, growing volume of energy generated by the Romanian wind parks, and extraordinary financial expenses in 2011. On the other hand, there was a negative impact of the developments in Albania, where our agreement on the gradual standardization of regulatory conditions was not honored by the Albanian regulatory authority and the Government.

Due to the excellent performance of its foreign acquisitions, ČEZ has already recouped 71% of its investment. Despite the impacts of the financing crisis in the countries where ČEZ has established presence, ČEZ has been successful at fulfilling its target financial indicators and implementing key changes in line with its plans. Albania poses the only exception; due to its unstable business environment, it is the only country that has not reached the planned return on investment.

Today at 8:35 a.m., ČEZ connected the 216th wind turbine to the grid, thanks to which the Fantanele-Cogealac Wind Farm in Romania, with an installed capacity of 540 MW, surpassed its rival in Scotland, and has thus become the largest onshore wind farm in Europe.

Comments made by third parties under the market test have shown no need to materially change the commitments proposed by ČEZ to the European Commission in June this year. Under the Settlement Agreement, ČEZ undertakes to sell one of five specific power plants with an installed capacity of at least 800 MW. The European Commission can be expected to make its final and legally binding decision in the matter in late November.

ČEZ has today informed Areva that they have in their bid failed to meet statutory requirements for building two new units of the Temelín Nuclear Power Plant. Moreover, Areva has not fulfilled some other crucial criteria defined in the tender. Since the award procedure has been conducted in accordance with the Public Procurement Act, Areva’s bid had to be excluded from further evaluation.

The ČEZ Group decided to respond positively to the Albanian Government by staffing its positions in the Supervisory Board and the Board of Directors of ČEZ Shperndarje with independent experts from SCHINDLERS, a UK-based company with long-term experience in strategic negotiations. ČEZ expects this move to calm down the currently rather tense style of communication and to be instrumental in taking all the steps necessary to resolve the situation in Albania.

The German-based energy exchange EEX has enlarged its platform "Transparency on Energy Markets" with the Czech Republic. Therefore, ČEZ, like numerous companies from Austria and Germany, is going to publish the availability of its resources, outage plans and downtimes on this platform from this date onwards. The aim of this is to present the production processes in a comprehensive way. Taking this step, the company meets the European directive REMIT, which has required producers to present these data since 28 December 2011.

The sales generated by the ČEZ Group increased by CZK 9.4 billion (9%) year on year, and reached thus CZK 113 billion. Operating Profit Before Depreciation (EBITDA) increased by CZK 4.5 billion (10%) year on year to CZK 48.4 billion. The group's Net Profit rose by CZK 3.3 billion (14%) year on year to CZK 27.2 billion. The main factors that contributed to the profit growth were higher sale prices of electricity combined with a weaker crown, and a collection of past-due receivables from the Romanian State Railways. The full-year outlook remains unchanged - the ČEZ Group expects a higher Net Profit year on year at CZK 41 billion.

ČEZ has selected Deloitte Advisory, s.r.o. as its financial advisor to assist in divesting its coal power stations. Potential buyers can from now on contact Deloitte to obtain all relevant information. ČEZ has already held negotiations with companies that had expressed their interest, namely Czech Coal and EPH. Nevertheless, ČEZ is going to define a final set of sale conditions at one time for all potential buyers.

Today, on Monday, July 2, was the deadline for submitting bids for completing the Temelín Nuclear Power Plant. Three qualified bidders have submitted their bids by today’s deadline for the biggest contract in the history of ČEZ and the entire Czech Republic – Areva, a consortium of the Westinghouse Electric Company, LLC and WESTINGHOUSE ELECTRIC ČR, and a consortium of ŠKODA JS, Atomstroyexport, and Gidropress. Tomorrow, the envelopes with their bids will be opened in their presence.