CEZ's Consolidated Quarterly Report on Operational, Economic and Financial Results for 1st Three Quarters 2000, in accordance with IAS
- Demand for electricity (38.1 TWh) increased by 1.8%
- ČEZ´s share in the electricity wholesale market decreased from 73.8% to 65.2%, largely as a result of lower sales of ČEZ´s own generation and in part due to changes of methodology and a contract termination in January 2000 for electricity purchased, from Elektrárny Opatovice, for resale
- Net income CZK 5.2 bn higher by CZK 3.2 bn (by 159%) mainly due to the fluctuating exchange rate of CZK, changes in the foreign currency portion of the debt, as well as a provision for terminated retrofit costs of Tušimice I included in 1999 base
- Maximum load reached 10,128 MW and is by 2% (202 MW) higher than in 1999
- The non-commercial tests of the 1st unit of Nuclear Power Plant Temelín were started
- The Czech government adopted an electricity sector privatisation plan in October
Prague, 30th October 2000
|Income Statement in Accordance with International Accounting Standards (IAS)||30 Sept 2000||30 Sept 1999||Index 00/99|
|Depreciation and amortization||CZK||6,529,727||6,410,729||101.9%|
|Other expenses (income)||CZK||850,345||2,378,052||35.8%|
|Income before taxation||CZK||6,744,198||3,954,867||170.5%|
|Earnings per share (EPS)||CZK||8.8||3.4||258.8%|
|Price earning ratio (P/E)*||1||7.6||12.5||60.8%|
|Return on equity (ROE) net*||%||7.3||4.0||182.5%|
|Return on total assets (ROA) net*||%||4.1||2.3||178.3%|
|Total indebtedness (provisions excluded)||%||33.7||33.9||99.4%|
|* For the last 12 months|
Revenues, Expenses, Income
Income Statement, Balance Sheet and Cash Flow are converted to International Accounting Stan-dards (IAS) from Czech Accounting Principles and may differ significantly from the same data prepared according to Czech Accounting Principles.
Net income for the period January to September amounted to CZK 5.2 bn, an increase of CZK 3.2 bn (158.6%) in comparison with the same period of 1999. This improvement results mainly from fluctuating exchange rate of CZK, changes in the level and structure of the foreign currency portion of debt, as well as from the 1999 terminated retrofit of Tušimice I (CZK 2.3 bn).
Total revenues of ČEZ amounted to CZK 37.7 bn and were CZK 0.5 bn (1.2%) lower than in the same period of previous year.
Operating expenses amounted to CZK 30.1 bn, and were CZK 1.7 bn (5.4%) lower than in 1999.
Other expenses amounted to CZK 0.9 bn, i. e. a decrease of CZK 1.5 bn. This results, as mentioned, mainly from exchange rate changes, as well as from changes in the foreign currency portion of debt.
Income tax amounted to CZK 1.5 bn, a decrease of CZK 0.4 bn (21.8%) in comparison with the same period of the previous year.
Earnings per share increased from 3.4 CZK to 8.8 CZK due to the higher profit.
Price earning ratio decreased from 12.5 to 7.6 due to the higher increase of profit in comparison with the slight increase of share price.
Return on equity net rose from 4.0% to 7.3% as a result of a higher increase of profit in comparison with the increase of average capitalization.
Return on total assets net rose from 2.3% to 4.1% due to higher increase of profit in comparison with the increase of average total assets.
Total indebtedness (provisions excluded) decreased and amounted to 33.7%, long-term indebtedness increased and amounted to 24.6%.
The number of employees decreased from 9,266 at the beginning of the year to 9,007 as of 30 September 2000 (by 259 employees).
Sale of Electricity
In comparison with the same period of 1999, of the CZK 3.9 bn decrease in sales of electricity an amount of CZK 3.4 bn (for auxiliary services invoiced to EEPS separately from February 2000) was reclassified to "Heat sales and other revenues", i. e. sales of electricity as a whole decreased by CZK 0.5 bn (1.4%).
Demand for electricity (38,081 GWh) increased by 3.7% (1,374 GWh), from that 700 GWh is the result of methodology changes, i. e. the real increase is only 1.8%. High voltage consumption including consumption of autoproducers increased by 7.1% (1,572 GWh), but the real increase is - for above mentioned reasons - only 4%. On the contrary, low voltage consumption as a whole, decreased by 1.2% (174 GWh), from that commercial sector by 0.9% (46 GWh) and households consumed less by 1.3% (128 GWh) - due to warmer weather from January to September 2000 and the increase of prices by 15% since January.
ČEZ´s share in meeting demand for electricity in the Czech Republic decreased from 73.8% to 65.2%, largely as a result of lower sales of ČEZ´s own generation and in part (more than one third) from that more than one third is the result of changes of methodology and a contract terminationfinished in from January 2000 for electricity purchased, from Elektrárny Opatovice, for resale.
The total sales of ČEZ in the Czech Republic decreased by 2,226 GWh (7.5%). On the contrary, ČEZ increased electricity export by 6,121 GWh (199,6%).
As a whole, capital investment during the first nine months of 2000 reached CZK 13.9 bn, a decrease of CZK 1.2 bn (8%) in comparison with the first nine months of 1999.
The total amount spent on the NPP Temelín during the first nine months was CZK 6.4 bn. In July the Nuclear Safety Authority granted permission for fuel loading into the 1st unit. Subsequently, non-commercial tests started, followed by the activation of nuclear fuel in October.
The updating program at NPP Dukovany continues, in September ČEZ signed a contract with ŠKODA JS for the complete renovation of the instrumentation and control system.
During period January - September 2000 ČEZ fulfilled all its financial commitments.
Net cash provided by operating activities increased to CZK 13.8 bn (by CZK 2.5 bn).
The total cash used in investing activities reached CZK 13.9 bn. As a result, there was no need for cash from financing activities. Also, proceeds from borrowings and payments of borrowings were balanced.
In March ČEZ established program for short-term securities (promissory notes) with eight banks for a total amount of CZK 9 bn (with CZK 7.5 bn committed).
In April, after drawing the 1st portion of the debt (EUR 100 m), ČEZ signed five-year syndicated guarantee EUR 85 m, that is a condition for borrowing the second portion of the loan from European Investment Bank.
ČEZ called and repaid early the 3rd domestic bond issues (CZK 4 bn) as of 6 June 2000.
The Czech government adopted a privatisation plan in October to sell shares of ČEZ together with shares in six of the eight regional distribution companies (Západočeská energetika, Severočeská energetika, Jihomoravská energetika, Východočeská energetika, Severomoravská energetika, Středočeská energetická).
In October ČEZ donated the wind power plant Dlouhá Louka to the Česká Akademie vid.
|Income Statement in Accordance with International Accounting Standards (IAS) (CZK 1,000)||30 Sept 2000||30 Sept 1999|
|Sales of electricity||32,349,017||36,248,680|
|Heat sales and other revenues||5,356,260||1,922,748|
|Repairs and maintenance||3,357,944||3,398,028|
|Depreciation and amortization||6,529,727||6,410,729|
|Salaries and wages||2,691,552||2,597,734|
|Nuclear decommissioning and fuel storage||762,680||759,662|
|Materials and supplies||1,408,864||1,430,679|
|Costs of ash storage, air and water pollution and environmental claims||259,099||245,034|
|Other operating expenses||1,959,338||2,970,364|
|Income before other expenses/income and income tax||7,594,543||6,332,919|
|Interest on debt, net of capitalized interest||651,735||612,418|
|Exchange rate losses (gains)||381,682||1,841,557|
|Equity in earnings of affiliate||-266,300||-417,763|
|Income before income tax||6,744,198||3,954,867|
|Cash Flow in Accordance with International Accounting Standards (IAS) (CZK)||30 Sept 2000||30 Sept 1999|
|Cash as at 1 January||4,356,956||1,008,231|
|- Income before income taxes||5,234,425||2,023,884|
|- Depreciation and amortization||6,552,319||6,466,743|
|- Amortization of nuclear fuel||1,105,930||1,052,239|
|- Provision for nuclear decommissioning and fuel storage||219,381||225,314|
|- Changes in assets and liabilities||539,796||991,216|
|Cash as at 30 June||4,296,645||2,510,407|
|30 Sept 2000||30 Sept 1999|
|Net electricity generation in the Czech Republic (GWh)||49,583||41,803|
|Electricity generation at ČEZ - net (GWh)||34,479||29,672|
|Electricity sold by ČEZ in the Czech Republic (GWh)||27,395||29,621|
|- Electricity sold by ČEZ to REAS (GWh)||26,771||29,443|
|- Price of electricity sold to REAS (CZK/MWh)||999||1,142|
|- dtto incl. auxiliary servicies||1,125||1,142|
|- dtto incl. auxiliary servicies, without transmission a dispatch services||1,053||1,072|
|ČEZ´s electricity export (GWh)||9,187||3,066|
|ČEZ´s electricity imports (GWh)||515||740|
|Balance Sheet in Accordance with International Accounting Standards (IAS)(CZK)||30 Sept 2000||31 Dec 1999|
|Plant in service||166,541,748||163,973,512|
|Less accumulated provision for depreciation||80,003,883||73,983,232|
|Net plant in service||86,537,865||89,990,280|
|Nuclear fuel, at amortized cost||5,078,023||4,913,533|
|Construction work in progress||100,489,716||91,459,756|
|Investment in affiliate||5,500,472||5,351,350|
|Other non-current assets, net||3,333,542||2,911,472|
|Materials and supplies, net||2,342,293||2,172,057|
|Fossil fuel stock||551,036||796,786|
|Shareholders´ equity and liabilities||212,436,466||207,059,085|
|Long-term debt, net amount due within one year||51,743,852||51,084,307|
|Accumulated provision for nuclear decommissioning|
|and fuel storage||16,491,690||16,272,310|
|Deferred income taxes, net||9,717,589||9,133,614|
|Long-term debt due within one year||3,735,760||2,664,961|
|Consolidated Statement of Shareholders´ Equity in accordance with IAS (CZK m)||Stated Capital||Retained Earnings||Total|
|December 31, 1998||59,208,846||49,600,428||108,809,274|
|Net Income for period 1-9/1999||2,023,884||2,023,884|
|September 30, 1999||-29||-29|
|Net Income for period 10-12/1999||59,208,846||51,624,283||110,833,129|
|Retained loss ČEPS of previous year||3,110,530||3,110,530|
|December 31, 1999||59,208,846||54,734,813||113,943,659|
|Net Income for period 1-9/2000||5,234,425||5,234,425|
|September 30, 2000||59,208,846||59,969,238||119,178,084|
|Capacity, Employees||30 Sept 2000||31 Dec 1999|
|Installed capacity ČEZ (MW)||10,145||10,151|
|Number of employees (pers)||9,007||9,266|
|Specific number of employees (pers/MW)||0.888||0.91|
This report has not been audited .