CEZ Group

The CEZ energy group has detected two unauthorized emission permit transfers in connection with the recent attack on the Czech carbon emission permit registry. Last week, OTE, the Czech carbon registry operator, temporarily closed its carbon registry, allegedly due to a software attack on the core parts of its information system.

CEZ Romania SA, member of the CEZ Group, finalized the acquisition of the hydroenergy system in Caras Severin County near Resita. CEZ Romania SA bought 100% stake in TMK Hydroenergy Power SRL.

In Prague on 13 December 2010 – the ČEZ Group will produce over extra 60,000 MWh of clean power in the horizon of 12 years in hydroelectric power plants compared to the current situation. An extensive program for increasing the efficiency of ČEZ hydroelectric power plants will enable covering of the annual demand of further 17 thousand households. At the same time it is an alternative to construction of renewable sources in new locations.

General Meeting of ČEZ, the power company, exchanged members of the Supervisory Board at its meeting today.

Net profit of the energy CEZ Group generated for three quarters of this year has dropped on a year-on-year basis as expected. The drop by CZK 7.1 billion to CZK 40.2 billion is however deeper than analysts expected. Earnings before interest, taxes, depreciation and amortization (EBITDA) reached CZK 67.2 billion, which means a year-on-year decrease by 5.4%. Even in this case, the actual results surpass the analysts’ expectations.

The net profit of the energy ČEZ Group in the first half year fell year-on-year by 6.5 billion CZK to 28.7 billion CZK. Its EBITDA fell by 4.6 billion CZK. The fall in electricity prices was the main impact.

This year in May the company ČEZ drew the revenue office’s attention in writing to its suspicion that the company TES Praha, a.s. could have become an intentional or unintentional party to so-called carousel transactions resulting VAT evasion. In April ČEZ, when these transactions began intensively, it began to suspect that this trader may be breaking the law. Therefore it submitted all source documents to the revenue office. ČEZ also stopped trading with emission tickets and with other companies which used a similar trading model as TES Praha a.s. Standard trading with other reputable partners continues.

Even in the last year, the foreign companies of the CEZ Group experienced processes the purpose of which was to enhance their production capacity. In total, the accumulated EBITDA (operating income) of the foreign companies has amounted to nearly half of the investment. CEZ gains CZK 5.5 billion on dividends.

Fantanele, Romania – Yesterday (1st June) at 5:25 pm. of the local time, the first of a total of 240 wind turbines was commissioned in the project of the largest European wind farm Fantanele – Cogealac which is under construction by the CEZ Energy Company in the Romanian province Dobrogea.

The ČEZ company has delivered the documents regarding effects of the “New nuclear source in the Temelín locality, including power transmission to the Kočín switch yard” on environment today. It is a further step within the process of environmental impact assessment (EIA) that follows the preliminary proceedings and its conclusions.