Together with its partner, Akkök of Turkey, the CEZ Group has accepted from their contractor a newly built combined heat and power (CHP) plant of Egemer in southeast Turkey and started its live operation. Being a highly efficient source of heat and power with 57% efficiency and a service life of minimum 30 years, the plant should generate up to 7,000 GWh of electricity every year.
CEZ Group’s operating revenues amounted to CZK 101.7 bn in H1 2014. Its EBITDA achieved CZK 39.9 bn and net income was CZK 17.2 bn. The year-on-year drop reflects continually worsening conditions in the energy business, decreasing wholesale electricity prices, as well as this year’s extraordinarily warm and dry winter. CEZ Group tries to counterbalance those effects by cuts in fixed costs and by additional business opportunities.
The parties listed below today announced that they have entered into an amicable settlement agreement.
CEZ entered into settlement agreement with Albania: it will end the Dispute and it will recover almost CZK 3 bn
In Vienna CEZ signed a settlement agreement with Albanian counterparty under supervision of Energy Community Secretariat. According to the agreement CEZ, after fulfillment of conditions precedent, will get in annual installments EUR 100 m in total, i.e. the amount similar to initial investment into purchase of Albanian distribution company. Conditions for ending of arbitrage are part of the agreement.
Czech President Supported ČEZ in Romania; Local Government Officials Expressed Willingness to Resolve Issues with Renewable Energy Source Incentives
The main topic of today’s meeting of President Miloš Zeman with ČEZ’ CEO Daniel Beneš, ČEZ’ Foreign Assets Division Director Tomáš Pleskač, and Romanian Minister of Energy Răzvan-Eugen Nicolescu were changes in the business environment in the energy sector. The President supported investments of Czech corporations in Romania; further negotiations concerning the method of allocating green certificates to ČEZ’ Fantanele and Cogealac wind farm will follow.
In the first quarter of 2014, the CEZ Group recorded a Net Profit of CZK 9.9 bn, with its Operating Profit Before Depreciation (EBITDA) at CZK 21.2 bn and Operating Cash Flow at CZK 15.6 bn; this was 5% less than in Q1 2013. These results reflect the deteriorating business conditions in the energy sector, lower electricity wholesale prices and the stagnating European economy. The year-on-year profit was also affected by the above-average temperatures and below-average precipitation in Q1 2014, combined with the extraordinary revenues posted in Q1 2013.
At today´s meeting the Board of Directors of the power company CEZ decided on date of General Meeting of Shareholders and on proposal of the sum of the dividend from the last year’s profit to be submitted to the General Meeting of Shareholders. The Board of Directors will propose a gross dividend amounting to CZK 40 per share (nominal value CZK 100), the same as last year. General meeting of Shareholders will take place on 27 June 2014.
Today ČEZ cancelled the procurement procedure in accordance with Public Procurement Act for construction of two nuclear units in the location of Temelin nuclear power plant and subsequently sent a relevant notice on cancellation of procurement procedure for public contract to participants. Information was received by all participants – consortium of Westinghouse Electric Company LLC and Westinghouse Electric Czech Republic s.r.o., consortium of ŠKODA JS, Atomstroyexport and Gidropress and also earlier excluded AREVA NP.
The Supervisory Board of ČEZ has today discussed a proposal for a change in the corporate organizational structure that would ensure that each of the Members of the Board of Directors will once again be responsible for a corresponding division. The newly defined divisions also respond to the current developments in the European energy sector where the impacts of regulation and legislation on business have become ever more evident. At the same time, the responsibility for management areas in the CEZ Group will be evenly distributed across all members of the Board of Directors, thus ensuring a greater management effectiveness. All changes will take effect as of 1 May 2014.
The CEZ Group has exceeded the originally estimated results for 2013. Operating Profit Before Tax (EBITDA) decreased by 4.4% year on year to CZK 82.1 bn, exceeding the expected value by CZK 1.1 bn. Its Net Profit declined by 12.3% year on year to CZK 35.2 bn (CZK 0.2 bn above the expectations). The main factor behind the year-on-year decline is a major drop of the wholesale prices of electricity due to massive subsidies going into renewable energy sources, combined with a stagnating European economy and ongoing uncertainty concerning the regulatory environment in the energy sector. In 2014, the CEZ Group expects its EBITDA to reach CZK 70.5 bn and its Net Profit approximately at CZK 27.5 bn.