Bloomberg News

CEZ Third-Quarter Profit Falls 79% on Temelin Outage, Carbon Tax

November 09, 2011

Nov. 9 (Bloomberg) -- CEZ AS, the Czech Republic’s largest power producer, said third-quarter profit fell 79 percent because of an unplanned outage at one of its nuclear plants, a tax on carbon emission credits and writedowns.

Net income in the three months through Sept. 30 declined to 2.4 billion koruna ($130 million) from 11.4 billion koruna a year earlier, the Prague-based company said today in a statement on its website. That missed the 7.5 billion koruna median estimate of 11 analysts in a Bloomberg survey.

CEZ was forced to extend the planned outage of the second unit at its Temelin nuclear power plant by 35 days in the summer because of technical problems, reducing total electricity production. Slower economic growth, a new tax on free carbon emission allowances and a writedown of goodwill on the Mibrag mine also reduced profit.

The utility reiterated its full-year targets for net profit of 40.6 billion koruna and for earnings before interest, tax, depreciation and amortization, which it expects to total 84.8 billion koruna.

Third-quarter Ebitda fell 7 percent to 18.5 billion koruna, CEZ said. Revenue during the three-month period rose 3 percent to 47 billion koruna, almost matching the 47.7 billion koruna estimated by the analysts.

CEZ will continue to focus on developing its nuclear power plants Dukovany and Temelin, according to the company today. The company plans to extend Dukovany’s lifespan beyond the current 2025 deadline, keep increasing the output of existing reactors at both Dukovany and Temelin, and build new reactors on both locations, it said.

The company will cash in 46 million euros ($63.4 million) from its sale of the Mibrag mine in Germany to Czech utility EP Holding in July, it said. Germany is seen as a “risky environment” after its decision to exit nuclear power and limit coal-burning plants, CEZ said in the statement.

--Editor: Douglas Lytle

To contact the reporter on this story: Ladka Bauerova at lbauerova@bloomberg.net

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


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