Agreement with Albania Confirmed: Parties Fulfilled All Conditions Precedent; ČEZ to Obtain Nearly CZK 3 bn
On the premises of the Secretariat of the Energy Community in Vienna, the Parties mutually confirmed that all conditions precedent had been fulfilled; thus, the Settlement Agreement took effect as made between companies of the CEZ Group and Albania in June of this year. According to the Agreement, ČEZ is going to receive a total of EUR 100 million, an amount similar to its initial investment in acquiring the Albanian power distribution company.
At today's Supervisory Board of ČEZ session Petr Blažek resigned from his office of Supervisory Board member to September 29, 2014. At the same session the Supervisory Board of ČEZ co-opted Robert Šťastný as a new member of the Supervisory Board.
Masked police, gunfire or smoke grenades. So looked one of working meeting demonstrations, which took place today at the Nuclear Power Plant Temelín. Representatives from State Office for Nuclear Safety, the Integrated Rescue System, regional administration and government and Nuclear Power Plant Temelín discussed the lesson learned from the events at Fukushima NPP. Neither a representative of the European Commission was missing. Czech Police made the dynamic final dot of the meeting. For the first time in the presence of media, they demonstrated detention of persons who illegally leaked into the site of the largest Czech power plant.
The arbitration panel upheld ČEZ’ claims in an arbitration initiated in 2009 on the grounds of breached contractual conditions in a project for the reconstruction of an old power plant and the construction of a new power plant of Gacko in Bosnia and Herzegovina. The project was then stopped still before the major capital expenditures were expended. ČEZ is to receive damages totalling approximately EUR 7,5 million.
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.