CEZ expects decline of exports in 2003

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Investiční bankovnictví KB

      CEZ announced that it expects decline of exports to 15-16TWh in 2004 from record levels of around 19TWh in 2003. Despite this fact the net profit (CEZ without distribution companies) should be around 2003 levels, as weaker exports should be balanced with higher domestic sales and prices. According to current CEO, net profit for 2004 should be comparable to 2003 level after adjustment for extraordinary income from sale of stake in CEPS. Preliminary, net profit for 2003 should be around CZK 13.7bn and CZK 5.4bn after adjustment for profit from sale of stake in CEPS of CZK 8.3bn.

       Exports of CEZ soared last year as the European electricity generators were not able to deal with extreme summer temperatures. The announcement of CEZ is in line with our expectations. We assumed exports of around 16TWh in 2004. Therefore, the announcement has no impact on our estimates and fair value and thus we keep our buy recommendation on the stock.

      Tyto zprávy pro vás vytváří Investiční bankovnictví KB.