According to daily MF Dnes, CEZ faces decline of exports this year

Komentář
Investiční bankovnictví KB

      Daily MF Dnes wrote that the company struggles with its exports due to import restrictions by gridline operators, which decided to increase reserve capacity to cover potential problems that occurred during last year’s summer. According to spokesman of CEZ, there are import restriction to Austria and Germany, particularly Germany is the largest export market for the company. Daily MF Dnes cites a source close to the company that it faces up to 1/3 decline in exports this year.

       Decline of exports in 2004 is in line with our expectations, although we projected only 15% drop to 16TWh compared to mentioned decline by cca 37%. Decline in exports implies lower coal purchases for higher costs, which is also incorporated in our model. Therefore, we do not consider the news negative: a) statistics of the electricity market for January has not been released yet and we cannot specify y/y decline of exports from 1.5TWh exports in January 2003; b) we cannot assume change of trend based on one-month statistics; c) CEZ would look for another exports markets for example in Eastern Europe to compensate the decline of exports to Western European markets.

      Tyto zprávy pro vás vytváří Investiční bankovnictví KB.