Bloomberg News

CEZ Chief Says Temelin Plant Priority, Plans Wind Farms Abroad

October 11, 2011

Oct. 11 (Bloomberg) -- CEZ AS, the Czech Republic’s largest utility, will focus on building two new reactors at the Temelin nuclear plant, upgrading domestic power stations and building wind farms in Poland, Romania and Germany.

Extending the 2,000-megawatt Temelin site will be the company’s “absolute priority” this decade, Chief Executive Officer Daniel Benes said today at a press conference in Prague.

CEZ’s focus shifted from foreign acquisitions to the domestic market last year. The utility will now be “consolidating its operations in Bulgaria, Albania, Romania and other eastern European markets while investing only into renewable resources like wind farms and hydropower stations abroad,” Benes said.

CEZ expects to have 3,000 megawatts installed in renewable resources outside of the Czech Republic by 2016, Benes said. “Profit from foreign renewable energy sources will serve to finance the construction of new reactors at Temelin,” he said.

The foreign unit’s earnings before interest, tax, depreciation and amortization will exceed 10 billion koruna ($549 million) this year, division director Tomas Pleskac said at the conference. The company expects a similar result next year.

The 2010 dividend from CEZ’s foreign operations will be about 10 million koruna, Pleskac said. The company is still considering leaving Turkey, he said.

CEZ shares erased an earlier gain of as much as 1.3 percent and were down 0.1 percent to 711 koruna at 12:34 p.m. in Prague.

--Editors: Rob Verdonck, Stephen Cunningham

To contact the reporters on this story: Ladka Bauerova in Prague at lbauerova@bloomberg.net;

To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net.


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