CEZ's Consolidated Quarterly Report on Operational, Economic and Financial Results for 1st Half 2001, in accordance with IAS
- Demand for electricity (27.5 TWh) increased by 2.6%
- ČEZ power plants´ share in the electricity wholesale market increased from 56.4% to 57.1%, ČEZ´s share (including repurchased electricity) slightly decreased from 64.4% to 64.3%
- Net income CZK 6.9 bn, an increase of CZK 1.9 bn (by 37.9%)
- Maximum load reached 10,445 MW, 3.1% (317 MW) higher than in 2000
- The annual general meeting took place in June; payment of dividends to shareholders was approved for the first time in company history
- Assistance to The National Property Fund of the Czech Republic for completion of power privatization will be provided by Deloitte & Touche; the company WEIL, GOTSHAL & MANGES will be the solicitors
Prague, 31 st July 2001
|Income Statement in Accordance with International Accounting Standards (IAS)||30 June 2001||30 June 2000||Index 01/00|
|Operating revenues||CZK m||29,684||26,411||112.4 %|
|Operating expenses||CZK m||20,284||19,186||105.7 %|
|Fuel||CZK m||6,922||6,490||106.7 %|
|Purchased power||CZK m||2,479||2,721||91.1 %|
|Depreciation and amortization||CZK m||4,651||4,603||101.0 %|
|Operating income||CZK m||9,400||7,225||130.1 %|
|Other expenses (income)||CZK m||1,040||521||199.6 %|
|Income before taxation||CZK m||8,360||6,704||124.7 %|
|Income tax||CZK m||1,463||1,703||85.9 %|
|Net income||CZK m||6,897||5,001||137.9 %|
|Earnings per share (EPS)||CZK||11.6||8.4||138.1 %|
|Price earning ratio (P/E)*||1||5.9||7.3||80.8 %|
|Return on equity (ROE) net*||%||7.0||6.8||102.9 %|
|Return on total assets (ROA) net*||%||4.2||3.9||107.7 %|
|Assets turnover*||1||0.26||0.26||100.0 %|
|Total indebtedness (provisions excluded)||%||25.7||26.8||95.9 %|
|Long-term indebtedness||%||21.1||23.6||89.4 %|
|* For the last 12 months|
Revenues, Expenses, Income
Income Statement, Balance Sheet and Cash Flow Statement have been converted to International Accounting Standards (IAS) from Czech Accounting Principles and may differ significantly from the same data prepared according to Czech Accounting Principles. Presented data includes full consolidated data of ČEZ and ČEPS, and equity earnings of the affiliate (37.21% of the profit was from SeveroČeské doly).
Net income for the period January to June amounted to CZK 6.9 bn, an increase of CZK 1.9 bn (37.9%) in comparison with the same period in 2000. This improvement resulted from higher EBIT (by CZK 2.2 bn) and lower income taxes (by CZK 0.2 bn). However, exchange rate gains in the first half of 2000 were CZK 0.2 bn, while current exchange rate losses are CZK 0.4 bn, i. e. a combined deterioration of CZK 0.6 bn.
The total revenues of ČEZ amounted to CZK 29.7 bn and were CZK 3.3 bn (12.4%) higher than in the first half of 2000.
Operating expenses amounted to CZK 20.3 bn, and were CZK 1.1 bn (5.7%) higher than in the previous year.
Other expenses doubled to CZK 1.0 bn in comparison with the same period of 2000.
Income taxes amounted to CZK 1.5 bn, a decrease of CZK 0.2 bn (14.1%) in comparison with the same period of 2000.
Earnings per share increased from 8.4 CZK to 11.6 CZK due to an increase in profit.
The price earning ratio decreased from 7.3 to 5.9 due to the reduction in share prices (by 7.6%), while profit (for the last 12 months) increased by 13.9%.
The net return on equity (for the last 12 months) increased from 6.8% to 7.0% as a result of a slight increase in the average capitalization in comparison with that of profit.
The net return on total assets increased (from 3.9% to 4.2%) due to a slight increase in the average total assets in comparison with that of profit.
Assets turnover (for the last 12 months) stayed at the same level.
Total indebtedness (provisions excluded) decreased and amounted to 25.7%; long-term indebtedness also decreased to 21.1%.
The number of ČEZ employees decreased from 8,795 at the beginning of the year to 7,995 as of 30 June 2001, a drop of 800 employees (9.1%). In comparison with the same period of 2000, this is a reduction of 1,116 employees (12.2%).
Sale of Electricity
Revenues from sales of electricity (CZK 27.7 bn) increased by CZK 2.7 bn (by 10.6%). This is because of a change in methodology, where auxiliary services are now paid by REAS to ČEPS for all electricity delivered by REAS to final consumers, not only for electricity sold by ČEZ to REAS (as in 2000). The sale of electricity to regional distribution companies was 19 002 GWh, an increase of 400 GWh (by 2.1%).
Demand for electricity in the Czech Republic increased in comparison with the same half of last year by 693 GWh (by 2.6%) and reached 27.5 TWh. High voltage consumption increased as a whole by 534 GWh (by 3.4%). Low voltage consumption rose by 160 GWh (by 1.5%), although only household consumption increased (as a result of temperatures being, on average, 1.7°C lower than those for the first half of 2000).
ČEZ power plants´ share in meeting demand for electricity in the Czech Republic increased from 56.4% to 57.1% due to larger sales to regional distribution companies and stagnation of other producers´ production, consumption and sales. ČEZ´s share in meeting demand for electricity (including repurchased electricity from inland and abroad) slightly decreased by 0.1% to 64.3%.
In total, capital investments reached CZK 7.0 bn, 2.3 bn less than in the previous year.
In the first six months of 2001 CZK 2.4 bn was spent on the NPP Temelín. Initiation of the 1 st unit continued and power levels up to 55% of the nominal load were attained before breakdown due to the turbo-generator’s vibrations. Repairs should be finished in early August when initiation will be resumed. Commissioning of the 1 st unit is expected to happen n December 2001. The work on the 2nd unit continued according to the approved schedule, hot tests are expected in the second part of August and the predicted term of fuel loading is the end of this year.
During the first six months of 2001 ČEZ fulfilled all its financial commitments.
Net cash provided by operating activities increased to CZK 11.2 bn (by CZK 3.1 bn) due to higher profit, better balance of prepayments and lower interest payments.
The favourable trend which started in the second half of 2000, when operating activities brought in a higher amount of cash than was spent on investment continues. These facts allowed a sum of CZK 2.8 bn to be used for payments on borrowings.
The annual general meeting of shareholders, which took place in June, among other things,
- approved changes in articles of association
- agreed, in connection with finishing ČEZ´s privatization, to provide information about the company to parties concerned with privatizing the State’s major stake as well as parties chosen for advisors
- approved fulfilment of company due diligence in connection with cover of company financing for the next 3 years
- approved payments of directors’ fees and dividends of CZK 2 (before taxation) per share of the nominal value of CZK 100. Dividend payments will be provided by Česká spořitelna from 1 st August to 31st October, 2001
- approved some personnel changes of the Supervisory Board.
The Natio nal Property Fund of the Czech Republic signed an agreement in June with the company WEIL, GOTSHAL & MANGES as the solicitors for completing the privatization ČEZ and six regional distribution companies.
The Czech government decided in July that assistance to the National Property Fund of the Czech Republic will be provided by Deloitte & Touche.
At the request of E. ON, termination of the ČEZ - E. ON contract is being negotiated. Electricity deliveries from ČEZ have been interrupted since the 1 st of July. As the demand for electricity in the Czech Republic is rising and other exporting possibilities exist, ČEZ does not expect a reduction in the power plants’ production due to the termination of this contract
|Income Statement in Accordance with International Accounting Standards (IAS) (CZK m)||30 June 2001||30 June 2000|
|Sales of electricity||27,674||25,017|
|Heat sales and other revenues||2,010||1,394|
|Repairs and maintenance||1,187||1,198|
|Depreciation and amortization||4,651||4,603|
|Salaries and wages||2,012||1,797|
|Materials and supplies||871||924|
|Other operating expenses||2,162||1,453|
|Income before other expenses/income and income tax||9,400||7,225|
|Interest on debt, net of capitalized interest||266||256|
|Interest on nuclear provisions||732||633|
|Exchange rate losses (gains)||358||-199|
|Equity in earnings of affiliate||-324||-204|
|Income before income tax||8,360||6,704|
|Cash Flow in Accordance with International Accounting Standards (IAS) (CZK m)||30 June 2001||30 June 2000|
|Cash as at 1 January||3,219||4,357|
|- Income before income taxes||8,360||6,704|
|- Depreciation and amortization||4,659||4,606|
|- Amortization of nuclear fuel||781||795|
|- Provision for nuclear decommissioning and fuel storage||371||199|
|- Changes in assets and liabilities||-1,697||-2,466|
|Net effect of currency translation in cash||-52||23|
|Cash as at 30 June||4,541||583|
|30 June 2001||30 June 2000|
|Net electricity generation in the Czech Republic (GWh)||35,542||34,437|
|Electricity generation at ČEZ - net (GWh)||24,543||23,438|
|Electricity sold by ČEZ in the Czech Republic (GWh)||19,413||19,023|
|- Electricity sold by ČEZ to REAS (GWh)||19,002||18,602|
|- Price of electricity sold to REAS (CZK/MWh)||951||917*/|
|ČEZ´s electricity exports (GWh)||6,758||6,235|
|ČEZ´s electricity imports (GWh)||453||505|
|*/ The 2000 price is cleaned of transfer and control service fee, which has been paid directly from regional distribution companies to ČEPS, a.s. since 2001.|
|Balance Sheet in Accordance with International Accounting Standards (IAS)(CZK m)||30 June 2001||31 Dec 2000|
|Plant in service||177,334||177,181|
|Less accumulated provision for depreciation||88,336||84,228|
|Net plant in service||88,998||92,953|
|Nuclear fuel, at amortized cost||5,877||5,764|
|Construction work in progress||108,557||103,591|
|Investment in affiliate||5,483||5,225|
|Other non-current assets, net||4,330||3,851|
|Materials and supplies, net||2,329||2,268|
|Fossil fuel stock||644||712|
|Shareholders´ equity and liabilities||225,669||222,260|
|Long-term debt, net amount due within one year||47,668||49,704|
|Accumulated provision for nuclear decommissioning|
|and fuel storage||21,322||20,902|
|Deferred income taxes, net||8,455||8,057|
|Long-term debt due within one year||5,513||4,703|
|Consolidated Statement of Shareholders´ Equity in accordance with IAS (CZK m)||Retained Earnings||Total|
|December 31, 1999||62,996||122,205|
|Net Income for the period 1 - 6 / 2000||5,001||5,001|
|June 30, 2000||67,997||127,206|
|Net Income for the period 7 - 12 / 2000||2,236||2,236|
|December 31, 2000||70,233||129,442|
|Net Income for the period 1 - 6 / 2001||6,897||6,897|
|June 30, 2001||75,946||135,155|
|Capacity, Employees||30 June 2001||31 Dec 2000|
|Installed capacity ČEZ (MW)||10,146||10,146|
|Number of employees (pers)||7,995||8,795|
|Specific number of employees (pers/MW)||0.788||0.867|