CEZ Group

The winning prices for single units are from 14.6 % to 15.1 % higher than this year´s wholesale electricity prices. The resulting average electricity price from the auction of the virtual power plant for 2006 so reached +14.82 % compared to the current price.

The first round of the auction, where prospective buyers bid for power-station capacity of CEZ with the total output of 400 MW, reduced to 240 MW in summer months, took place today. The obligation to offer this capacity was imposed on CEZ by the Office of Fair Trading (UOHS) this March, when it allowed CEZ to keep its majority share in the fifth distribution company

CEZ Power Company reached a net profit of 10,896 billion CZK in the first half of the year, which was a year-on-year increase of 111 per cent. Besides improving operation results, the increase in profit was mainly influenced by dividend acceptance from daughter companies amounting roughly 4 billion CZK. The trend of growing economic results of CEZ and the Group continues this year as well. The operating profit was 10.931 million CZK and was 58 percent up on last year. The company managed to reduce its costs by over 1.3 billion CZK while incomes increased by 2.7 billion CZK.

Yesterday record stock price (535.30 CZK) moved CEZ to the third place in listed companies by market capitalization in Central Europe (Czech Republic, Poland, Slovakia, Hungary, Austria). Due to the market capitalization of 10.5 billion EUR, CEZ also gained number one position among the companies whose stocks are traded on the Prague security exchange.

CEZ welcomes the decision of the government because it is important for CEZ to gain the majority in Severoceske doly, where it now owns over 37 per cent.

CEZ Power Company has today completed a contract about coal supply with Mostecka uhelna spolecnost (MUS). The contract is variant based on if/how the territorial mining limits will be rationally revalued. The contract can thus be valid for roughly 50 years. The aim of this contract is to provide supplies for at least one brand new power unit in Pocerady and for the complex renewal of three present units in the same place.

A transfer of 4,400 employees and of assets in the amount of 74b CZK will take place within the CEZ Group this year

Moody´s, a credit rating provider, has raised the long-term financial strength rating of the Power Group CEZ to a new, A3 category, from the previous Baa1. Standard & Poor´s raised the rating of CEZ as well this month, when it moved the rating outlook in the BBB+ category from "table" to "positive".

Trade prices will result from market interaction of offer and demand in the whole region of Central Europe and will not be known until the contract period for next year, i. e. during August and September.

The CEZ traders topped trade sections of other European power firms yesterday. CEZ used its flexibility and was the first power trader to sell power supply for next year for over 40 EUR per MWh on the German market. The volume of the deal totals roughly CZK 54m.