FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For the month of October 2005
Commission File Number 333-7182-01
CEZ, a. s.
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(Translation of registrant's name into English)
c/o Duhova 2/1444
140 53 Prague 4
Czech Republic
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(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F.
Form 20-F X Form 40-F
--- ---
Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(1): ____
Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(7): ____
Indicate by check mark whether by furnishing the information contained in this
Form, the registrant is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No X
--- ---
If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82- ________
The following information was filed by CEZ, a. s. in Czech language with the
Prague Stock Exchange as required by its rules and regulations:
Report A - Press Release Concerning Results of CEZ Operations
Report B - Unaudited Financial Statements in accordance with IFRS as of
September 30, 2005
Report C - CEZ, a. s., Quarterly Report on Operational, Economic and
Financial Results for 1st through 3rd Quarters 2005
Report D - Preliminary, Non-binding Bid for Polish Coal Company, Katowicki
Holding Wenglowy S.A.
REPORT A:
PRESS RELEASE CONCERNING RESULTS OF CEZ OPERATIONS
CEZ's net profit (unconsolidated) for the first three quarters of this year
nearly doubled to CZK 13.4 billion.
In the first three quarters, the energy utility, CEZ, achieved an operating
profit of CZK 14,959 million, a 60% increase yr/yr. The net profit amounted to
CZK 13,420 million, up 94% yr/yr. The increase in the net profit was largely due
to CZK 4 billion in dividends received from subsidiaries. The company's sales
rose by CZK 4 billion, while its expenses fell by more than CZK 1.5 billion.
"We are pleased by the fact that the sales have increased markedly; we have
succeeded in keeping down our expenses. In the expenses incurred in connection
with electricity generation, we have significantly reduced the cost of repairs,
in part as a result of a smaller extent of overhauls, but also the cost of fuel.
There has been a favorable trend in the balance of provisions. A marked decrease
in the cost of electricity purchased abroad is reflected in the volume of trade
on the side of sales, but the revenues have increased," said Vice-Chairman of
the Board and CFO, Petr Voboril.
The financial resources generated from operating activities reached CZK 25
billion, up yr/yr by CZK 7 billion. The funds spent in investments (including
financial investments) rose by CZK 3.5 billion to CZK 11 billion. The increase
was primarily due to the successful acquisition of the Romanian distribution
company, Electrica Oltenia.
Electricity generation in CEZ's power plants in the first three quarters of this
year reached 44,204 GWh. Coal-fired power plants still generate the most
electricity, accounting for 56% of total output. The generation in nuclear power
plants reached 41%. The remaining 3% was generated by hydroelectric power plants
and other renewable sources.
A 2.3% growth in demand for electricity in the Czech Republic has increased the
domestic sales of CEZ's electricity, while on the other hand, exports have
declined. "In the coming years, we will focus on the domestic market. We expect
domestic sales to increase, and anticipate that exports will continue to
decline. Here, we will focus on and have already made arrangements for exports
to the regions of Southeastern Europe," said CEZ's Vice-Chairman of the Board
and Commercial Director, Alan Svoboda.
The results presented are not consolidated, but the subsidiaries of the CEZ
Group have also performed very well. The spotlight is held by the first
successful acquisition by CEZ of three Bulgarian distribution companies. In less
than a year from the time when the local distributors became part of the CEZ
Group, actual changes have been achieved. Director and Administration Division
Manager, Radomir Lasak, commented on the situation in Bulgaria as follows:
"Control over the companies was obtained faster than we had expected.
Coordination of activities among the local distributors has brought the first
cost savings in the order of tens of percent, and the year-on-year increase in
profits is close to 50 percent. This year's electric energy losses have been
reduced by about 10% in all the three distributors, and our distribution
companies were the first to obtain a license for trade in electricity in the
free Bulgarian market."
Table: Results of CEZ's Operations (Unconsolidated) for the First Nine Months of
2005
(CZK mil.) yr/yr change
- --------------------------------------------------------------------------------
Operating revenues 49,750 + 8.9%
- - sales of electricity 48,133 + 9.0%
- --------------------------------------------------------------------------------
Operating expenses 34,791 - 4.2%
- --------------------------------------------------------------------------------
Operating profit 14,959 + 59.7%
- --------------------------------------------------------------------------------
Profit before tax 16,203 + 79.2%
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Profit after tax 13,420 + 93.9%
- --------------------------------------------------------------------------------
Note: according to the International Accounting Standards
REPORT B:
UNAUDITED FINANCIAL STATEMENTS IN ACCORDANCE
WITH IFRS AS OF SEPTEMBER 30, 2005
BALANCE SHEET IN ACCORDANCE WITH IFRS AS OF SEPTEMBER 30, 2005 (IN CZK
MILLIONS):
- --------------------------------------------------------------------------------
current year prior year
- --------------------------------------------------------------------------------
ASSETS 263 562 255 496
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Fixed assets 243 327 245 108
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Property, plant and equipment 171 400 178 935
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Plant in service 283 480 280 092
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Less accumulated provision for depreciation 127 185 118 224
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Net plant in service 156 295 161 868
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Nuclear fuel, at amortized cost 8 021 7 909
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Construction work in progress 7 084 9 158
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Other non-current assets 71 927 66 173
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Investments and other financial assets, net 70 773 64 883
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Intangible assets, net 1 154 1 290
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Current assets 20 235 10 388
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Cash and cash equivalents 7 084 1 141
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Receivables, net 6 456 5 368
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Income tax receivable 2 710
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Materials and supplies, net 2 672 2 538
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Fossil fuel stock 574 705
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Other current assets 739 636
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EQUITY AND LIABILITIES 263 562 255 496
- --------------------------------------------------------------------------------
Equity 169 779 162 477
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Stated capital 58 303 59 218
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Retained earnings and other reserves 111 476 103 259
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Long-term liabilities 66 816 67 351
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Long-term debt, net of current portion 36 901 38 071
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Accumulated provision for nuclear
decommissioning and fuel storage 29 915 29 280
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Other long-term liabilities
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Deferred tax liability 14 856 11 885
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Current liabilities 12 111 13 783
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Short-term loans
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Current portion of long-term debt 1 838 1 809
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Trade and other payables 7 143 8 703
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Income tax payable 515
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Accrued liabilities 3 130 2 756
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INCOME STATEMENT IN ACCORDANCE WITH IFRS AS OF SEPTEMBER 30, 2005 (IN CZK
MILLIONS):
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current period prior year period
- ------------------------------------------------------------------------------------------------------
July - January - July - January -
September September September September
- ------------------------------------------------------------------------------------------------------
Revenues 15 980 49 750 14 601 45 700
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Sales of electricity 15 611 48 133 14 264 44 168
- ------------------------------------------------------------------------------------------------------
Heat sales and other revenues 369 1 617 337 1 532
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Operating expenses 11 952 34 791 12 160 36 332
- ------------------------------------------------------------------------------------------------------
Fuel 3 251 10 299 3 259 10 458
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Purchased power and related services 1 875 5 538 1 932 6 497
- ------------------------------------------------------------------------------------------------------
Repair and maintenance 776 1 896 1 030 2 320
- ------------------------------------------------------------------------------------------------------
Depreciation and amortization 3 432 10 164 3 353 10 145
- ------------------------------------------------------------------------------------------------------
Salaries and wages 1 296 3 228 901 2 910
- ------------------------------------------------------------------------------------------------------
Materials and supplies 473 1 262 400 1 239
- ------------------------------------------------------------------------------------------------------
Other operating expenses 849 2 404 1 285 2 763
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Income before other expense/income and
income taxes 4 028 14 959 2 441 9 368
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Other expenses/income 610 -1 244 -26 327
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Interest on debt, net of capitalized
interest 470 1 234 485 1 200
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Interest on nuclear provisions 512 1 537 490 1 470
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Interest income -59 -130 -53 -114
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Foreign exchange rate losses/gains, net -311 364 -280 -121
- ------------------------------------------------------------------------------------------------------
Other expenses/income, net -2 -4 249 -668 -2 108
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Income before income taxes 3 418 16 203 2 467 9 041
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Income taxes 894 2 783 716 2 119
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Net income 2 524 13 420 1 751 6 922
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CASH FLOW STATEMENT IN ACCORDANCE WITH IFRS FOR NINE-MONTS PERIOD ENDED
SEPTEMBER 30, 2005 (IN CZK MILLIONS):
- -----------------------------------------------------------------------------------------------------------
current period prior year period
- -----------------------------------------------------------------------------------------------------------
Operating activities:
- -----------------------------------------------------------------------------------------------------------
Income before income taxes 16 203 9 041
- -----------------------------------------------------------------------------------------------------------
Adjustments to reconcile income before income taxes to net cash provided by
operating activities:
- -----------------------------------------------------------------------------------------------------------
Depreciation and amortization and asset
write-offs 10 175 10 160
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Amortization of nuclear fuel 2 197 2 404
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Gain/Loss on fixed assets retirements, net -10 -587
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Foreign exchange rate loss/gain, net 364 -122
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Interest expense, interest income and
dividends income, net -2 953 -593
- -----------------------------------------------------------------------------------------------------------
Provision for nuclear decommissioning and
fuel storage 482 492
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Provision for doubtful accounts,
environmental claims and other
adjustments -453 56
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Changes in assets and liabilities:
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Receivables -220 1 318
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Materials and supplies -134 -68
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Fossil fuel stocks 131 149
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Other current assets -102 -114
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Trade and other payables -1 097 -1 308
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Accrued liabilities 393 494
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Cash generated from operations 24 976 21 322
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Income taxes paid -3 038 -4 219
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Interest paid, net of interest
capitalized -1 060 -879
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Interest received 131 115
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Dividends received 3 964 1 679
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Net cash provided by operating activities 24 973 18 018
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Investing activities:
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Acquisition of subsidiaries and
associates -7 525 -3 745
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Proceeds from disposal of subsidiaries and
associates 1 416
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Additions to property, plant and equipment
and other non-current assets -5 294 -8 862
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Loans made -400
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Proceeds from sales of fixed assets 888 5 029
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Repayments of loans 50
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Change in decommissioning and other
restricted funds -134 67
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Total cash used in investing activities -10 999 -7 511
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current period prior year period
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Financing activities:
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Proceeds from borrowings 15 204
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Payments of borrowings -1 698 -9 516
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Proceeds from other long-term liabilities
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Payments of other long-term liabilities
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Dividends paid -5 290 -4 722
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Acquisitions/sale of treasury shares -993 -135
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Total cash provided by (used in) financing activities -7 981 831
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Net effect of currency translation in cash -50 108
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Net increase/decrease in cash and cash equivalents 5 943 11 446
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Cash and cash equivalents at the beginning of period 1 141 888
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Cash and cash equivalents at end of period 7 084 12 334
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Supplementary cash flow information:
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Total cash paid for interest 1 466 1 346
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STATEMENT OF CHANGES IN EQUITY IN ACCORDANCE WITH IFRS (IN CZK MILLIONS):
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Stated Capital Fair Value and Retained Total Equity
Other Reserves Earnings
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December 31, 2003 59 152 -30 93 646 152 768
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Net income 6 922 6 922
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Dividends declared -4 738 -4 738
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Acquisition of treasury shares -442 -442
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Sale of treasury shares 509 -202 307
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Revaluation of AFS investments
removed from equity 50 50
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Gain on sale of subsidiary CEPS, 4 101 4 101
net of tax
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September 30, 2004 59 219 20 99 729 158 968
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December 31, 2004 59 218 80 103 179 162 477
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Net income 13 420 13 420
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Dividends declared -5 309 -5 309
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Acquisition of treasury shares -1 246 -1 246
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Sale of treasury shares 331 -78 253
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Change in fair value of CF 73 73
hedges recognized in equity
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CF hedges removed from equity -157 -157
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Share options 268 268
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September 30, 2005 58 303 264 111 212 169 779
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REPORT C:
CEZ, A. S., QUARTERLY REPORT ON OPERATIONAL, ECONOMIC AND
FINANCIAL RESULTS FOR 1ST THROUGH 3RD QUARTERS 2005
Non-audited unconsolidated results in accordance with
International Financial Reporting Standards
Prague, 31 October 2005
Main features
[X] EBIT up 59.7% (by CZK 5.6 billion) year-on-year to CZK 15.0 billion.
[X] Net income grew 93.9% to CZK 13.4 billion (up CZK 6.5 billion) and the
full-year forecast also improved to CZK 16.0 billion.
[X] On October 20, CEZ, a. s. and the National Property Fund of the Czech
Republic signed an agreement on the sale of the State's 55.8% stake in the
brown coal mining company Severoceske doly a.s. for CZK 9.05 billion.
[X] A transaction making CEZ, a. s. the 51% owner of the Romanian distribution
company Electrica Oltenia settled on October 4.
[X] CEZ, a. s. commenced a squeeze-out of minority shareholders from four CEZ
Group electricity distribution companies whose distribution licenses are
passing to CEZ Distribuce, a. s.
[X] Over the period from January to the end of September, the price of CEZ,
a. s. shares on the Prague Stock Exchange increased by 117.0% (from CZK 341
to CZK 739). In October the shares succumbed to an across-the-board stock
market correction and on October 27 they closed at CZK 634.
[X] On July 20, the Czech Government allocated to CEZ, a. s. emission permits
for 36.9 million tons per year of carbon dioxide for the 2005-2007 period.
[X] Moody's credit rating agency upped the company's rating from A3 to A2,
leaving the outlook at stable.
[X] On October 27, CEZ, a. s. submitted a preliminary bid for Polish hard coal
mining company Katowicki Holding Weglowy S.A.
- --------------------------------------------------------------------------------------------------------------------------
January - January - Index Index
September 2005 September 2004
CZK m GWh CZK m GWh 05/04 (CZK) 05/04 (GWh)
Revenues 49 750 45 700 108.9%
Sales of electricity 48 133 43 971 44 168 46 347 109.0% 94.9%
Distribution companies 27 747 27 861 25 375 28 602 109.3% 97.4%
Eligible customers, market operator, other 4 012 3 283 3 730 3 284 107.6% 100.0%
Traders 5 946 6 902 3 260 4 400 182.4% 156.9%
Export 5 451 5 583 6 758 8 531 80.7% 65.4%
Trading outside the Czech Republic 359 343 1 225 1 530 29.3% 22.4%
Revenues from sale of ancillary services 4 619 3 820 120.9%
Heat sales and other revenues 1 617 1 532 105.5%
Operating expenses 34 791 36 332 95.8%
Fuel 10 299 10 458 98.5%
Purchased power and related services 5 538 6 497 85.2%
of which: purchased electricity 3 837 4 018 4 739 5 048 81.0% 79.6%
Depreciation and amortization 10 164 10 145 100.2%
Operating profit (EBIT) 14 959 9 368 159.7%
EBITDA 25 123 19 513 128.8%
Other expenses(+)/income(-) -1 244 327 x
of which: dividends received -4 058 -1 679 241.7%
Income before income taxes (EBT) 16 203 9 041 179.2%
Net income 13 420 6 922 193.9%
Unit January-September 2005 January-September 2004 Index 05/04
Price earnings ratio (P/E)* 1 25.5 21.1 121.0%
Return on equity (ROE) - net % 8.1 4.4 181.9%
Return on invested capital (ROIC) % 6.3 4.0 156.6%
EBITDA margin % 50.5 42.7 118.3%
EBIT margin % 30.1 20.5 146.7%
Total indebtedness (provisions excluded) % 23.0 24.5 94.1%
Long-term indebtedness % 14.0 15.8 88.7%
*) for the last 12 months
Revenues, Expenses, Income
Favorable earnings development over the three quarters reflects excellent
performance both in operations and financing.
Operating profit grew year-on-year (by 59.7%), driven by higher sales of
electricity (up 9%), which were also accompanied by a decline in operating
expenses (by 4.2%). Sales of electricity were up, despite reduced volumes,
thanks to higher prices. The average selling price in the Czech Republic grew
11.1% in year-on-year terms, and the export price (excl. crossing-border
profiles) was up 23.3%. Sales of directly exported electricity fell, as the
volume decline had a greater impact than did the higher prices, but part of
export was shifted to sales to domestic traders. The greatest increase in sales
was seen in the electricity distribution companies category (up CZK 2.4 billion,
or 9.3%), and when adjusted for reduced purchasing from these companies the
increase was CZK 3.4 billion (14.1%). Sales outside of the Czech Republic fell
substantially, affecting both sales revenues and electricity purchasing
expenses. Sales of ancillary services were up 20.9%.
Operating expenses fell by CZK 1.5 billion (4.2%) in year-on-year terms. In
addition to reduced expenses on electricity purchasing tied to lower sales
outside of the Czech Republic, there was also a CZK 0.4 billion (18.3%) decrease
in repairs and maintenance expenses, due in part to fewer overhauls and lower
expenses for repairing hydro power plants, which underwent extraordinary repairs
last year to deal with flood damage. Other expenses also declined, due in
particular to reduced provisioning. Since generation was lower, fuel expenses
were also down (by CZK 159 million, or 1.5%), despite the fact that reduced
output of Temelin Nuclear Power Station led to a partial shift of generation
from nuclear plants to fossil plants, which are more expensive to operate.
Personnel expenses were up CZK 317 million (10.9%) year-on-year.
The most important factor contributing to the CZK 1.6 billion year-on-year
improvement in financing performance were dividends received (CZK 4.1 billion,
up CZK 2.4 billion year-on-year). Financing expenses, on the other hand, were up
(by CZK 0.5 billion) due to changes in the balance of foreign exchange losses
and gains.
THE NUMBER OF EMPLOYEES fell by 177 during the third quarter, due to transfers
of employees to newly formed process companies. For example, 93 employees were
transferred to CEZ Sprava majetku. In year-on-year terms, the decline in
employees is 108 persons.
Sales of Electricity
CZECH REPUBLIC ELECTRICITY DEMAND in the first three quarters of 2005, according
to our estimates, was 42.0 TWh, which corresponds to year-on-year growth of 0.9
TWh (2.3%). CEZ, a. s. SUPPLIES IN COVERING ELECTRICITY DEMAND grew by 4.4%.
This growth is partly caused by moving buyout of electricity from IPP from
regional distribution companies to CEZ.
Total electricity sales increased by 7.9% to CZK 43.5 bn primarily due to
increase in electricity price. Total volume of electricity sold in January -
September was lower by 2.4 TWh (5.1%), from which sales outside the Czech
Republic represent 1.2 TWh (2.7%). Decrease of electricity supplied from CEZ's
power plants thus amounts 1.2 TWh. Lower export (by 34.6%) is compensated by
higher domestic sale as more export from the Czech market is organized by
traders.
3.2 TWh of electricity generated in "virtual power plant" was sold in the August
auction. Also in August, the annual two-round auction of electric power for the
domestic market was held. In the auction, which was for 2006, a total of 13.2
TWh (beside the electricity to CEZ Prodej, s.r.o.) was sold at an average price
of CZK 1,143/MWh. Total volume of domestic contracts incl. agreement concluded
with CEZ's subsidiary CEZ Prodej, s.r.o. represents 90 % of expected domestic
sales for 2006. Further, CEZ has concluded or negotiates about export up to 10
TWh southeastward.
In conjunction with the ongoing transformation of CEZ Group, final customers of
ZCE, VCE, SCE, STE, SME and CEZ are being transferred to the newly created
company CEZ Prodej, s.r.o. This portfolio represents a volume of more than 30
TWh for the next year.
Within its distribution area, CEZ Group introduced new "Green Electricity"
environmental program, i.e. support of generation and supply of electricity from
renewable sources of energy. Funds raised from the token charge to usual rates
will go to support projects in the area of renewable energy sources.
Electricity generation in the first three quarters totaled 44,204 GWh for a
year-on-year decline of 1.3 TWh (2.7%). Generation in fossil power plants was
down 667 GWh (2.6%), while nuclear power plants generated 886 GWh less than in
the same period of last year. On the other hand, generation from renewable
sources of energy grew in volume - for hydro power plants the increase was 282
GWh (22.1%), 63 GWh of which was growth in generation in pumped-storage plants,
and wind power plants accounted for 0.1 GWh (53.0%). Fossil power plants
accounted for 55.7% of generation volume (24,624 GWh), nuclear power plants
40.8% (18,019 GWh) and 3.5% (1,561 GWh) was generated in hydro power plants and
from other renewable sources of energy.
Investment Program
Additions to property, plant and equipment and other non-current assets in the
first through third quarters totaled CZK 5.3 billion.
At the Dukovany Nuclear Power Plant, units 2 and 3 were shut down for partial
fuel replacement and the outage was utilized to carry out an upgrade of
instrumentation and control (I&C) and protection systems on these units.
Preparations continue for a replacement of I&C and protection systems on the
nuclear portion of unit 4, which will allow the unit's useful lifetime to be
extended to at least 2025. The construction of a spent fuel repository in the
power plant premises was completed. At the Temelin Nuclear Power Station, unit 2
was shut down from April to July to replace a portion of the fuel. After that,
unit 1 was overhauled from July to October. Unit 2 will run at a reduced output
level until mid-December, when it will be shut down again to correct detected
glitches. Preparations have commenced for a retrofit of the Tusimice II Power
Station, to take place in 2007-2009 at a total budgeted cost of approximately
CZK 15 billion.
Financing
NET CASH PROVIDED BY OPERATING ACTIVITIES (CZK 25.0 billion) increased by CZK
7.0 billion (38.6%) compared to the same period of 2004. Growth components
included, in particular, income before income taxes (up CZK 7.2 billion).
Further positive impact was lower income tax paid (by CZK 1.2 billion, or
28.0%). These growth components were partially offset by a CZK 1.5 billion
change in the receivables development trend, as there was huge decrease of
receivables in the same period of 2004.
Total cash used in INVESTING ACTIVITIES rose in year-on-year terms by CZK 3.5
billion (46.4%) to CZK 11.0 billion, primarily due to increased expenditures to
acquire subsidiaries and associates (Electrica Oltenia, SME). A CZK 4.1 billion
(82.3%) decline in sales of fixed assets had a similar impact on this indicator.
On the
other hand, a CZK 3.6 billion (40.3%) fall in additions to property, plant and
equipment and other non-current assets and the first installment (CZK 1.4
billion) from the sale of the CEPS stake reduced the overall cash used in
investing activities.
Net cash flow from FINANCING ACTIVITIES was an outflow of CZK 8.0 billion, while
in the same period of last year the result was a CZK 0.8 billion increase in
cash (year-on-year change: CZK -8.8 billion). The primary reason is the fact
that there is no loan drawdown to offset CZK 1.7 billion of installments paid on
loans and credits in 2005, whereas in the previous year the 3rd Eurobond issue
was brought to the market. Dividend payout (CZK 5.3 billion) increased
year-on-year (by CZK 0.6 billion), as did the balance of purchase and sale of
treasury shares (by CZK 0.9 billion).
CEZ, a. s. Ratings:
Standard & Poor's: "BBB+" with positive outlook (increase from stable outlook as
of May 2005) Moody's: "A2" with stable outlook (up from "A3" as of September
2005)
Other Information
[X] On July 1, CEZ, a. s. signed an agreement with Mostecka uhelna a.s. for
coal supplies sufficient to run at least one entirely new generating unit
and for the comprehensive retrofit of three existing generating units in
Pocerady. At the same time, terms were clarified for supplying coal to
existing generating units in the 2006-2012 period. The agreement is
variable and can remain in effect for up to nearly 50 years, depending on a
review of territorial extraction limits.
[X] CEZ, a. s. is carrying out minority shareholders squeeze out from four CEZ
Group electricity distribution companies and these companies are now
holding General Meetings to approve their contributions of part of their
business as their investment in kind to CEZ Distribuce, a. s. In accordance
with the objectives of the Group's strategic development program, VIZE
2008, CEZ Distribuce, a. s. is becoming the license holder for the entire
CEZ Group distribution area. As of today, it holds the licenses for the
former distribution service areas of ZCE and VCE, and by year end it will
obtain the distribution licenses for the remaining distribution areas.
[X] On September 22, Mr. Jiri Bis became a new member of the Supervisory Board
replacing Mr. Martin Pecina, who resigned on the same day.
[X] On September 29, the Government of the Czech Republic decided to sell a
55.8% stake in the brown coal mining company Severoceske doly a.s. The
purchase agreement between CEZ, a. s. and the National Property Fund of the
Czech Republic was signed on October 20, and the acquisition price is CZK
9.05 billion. The transaction has yet to be approved by the Antitrust
Office.
[X] On October 4, a stake in the distribution company Electrica Oltenia was
transferred to CEZ, a. s. CEZ, a. s. is now the 51% shareholder in the
Romanian power distribution company.
[X] CEZ, a. s. is participating in tenders for the privatization of two Polish
State-owned power companies. On August 19, we placed a bid for a stake in
Zespol Elektrowni Dolna Odra SA and this was followed on September 9 by a
bid for a stake in Elektrownia Kozienice SA, which made the short list.
[X] CEZ, a. s. participated in a tender for a power plant and mine in
Montenegro. However, none of the bidders satisfied the conditions set by
the tender organizer.
[X] At the present time, CEZ, a. s. has qualified as one of 10 bidders in a
tender for the privatization of the Romanian distribution company Electrica
Muntenia Sud. The deadline for submission of binding bids has been set for
December 23.
[X] On October 27, CEZ, a. s. submitted a preliminary bid for at least 10%
stake in the second largest Polish hard coal mining company Katowicki
Holding Weglowy S.A.
INCOME STATEMENT IN ACCORDANCE WITH IFRS (in CZK millions)
7.-9./2005 1.-9./2005 7.-9./2004 1.-9./2004
Revenues 15 980 49 750 14 601 45 700
Sales of electricity 15 611 48 133 14 264 44 168
Heat sales and other revenues 369 1 617 337 1 532
Operating expenses 11 952 34 791 12 160 36 332
Fuel 3 251 10 299 3 259 10 458
Purchased power and related services 1 875 5 538 1 932 6 497
Repair and maintenance 776 1 896 1 030 2 320
Depreciation and amortization 3 432 10 164 3 353 10 145
Salaries and wages 1 296 3 228 901 2 910
Materials and supplies 473 1 262 400 1 239
Other operating expenses 849 2 404 1 285 2 763
Income before other expense/income and income taxes 4 028 14 959 2 441 9 368
Other expenses/income 610 -1 244 -26 327
Interest on debt, net of capitalized interest 470 1 234 485 1 200
Interest on nuclear provisions 512 1 537 490 1 470
Interest income -59 -130 -53 -114
Foreign exchange rate losses/gains, net -311 364 -280 -121
Other expenses/income, net -2 -4 249 -668 -2 108
Income before income taxes 3 418 16 203 2 467 9 041
Income taxes 894 2 783 716 2 119
Net income 2 524 13 420 1 751 6 922
Net income per share (CZK per share) - basic 4.3 22.9 3.0 11.7
Net income per share (CZK per share) - diluted 4.3 22.7 3.0 11.7
CASH FLOW STATEMENT IN ACCORDANCE WITH IFRS (in CZK millions)
1.-9./2005 1.-9./2004
Cash and cash equivalents at the beginning of period 1 141 888
Net cash provided by operating activities 24 973 18 018
Income before income taxes 16 203 9 041
Depreciation and amortization and asset write-offs 10 175 10 160
Amortization of nuclear fuel 2 197 2 404
Interest expense, interest income and dividends income, net -2 953 -593
Income taxes paid -3 038 -4 219
Other 2 389 1 225
Total cash used in investing activities -10 999 -7 511
Acquisition/sale of subsidiaries and associates -6 109 -3 745
Purchase/sale of fixed assets -4 406 -3 833
Change in decommissioning and other restricted funds -484 67
Total cash provided by (used in) financing activities -7 981 831
Proceeds from/payments of - borrowings -1 698 5 688
Acquisitions/sale of treasury shares -993 -135
Dividends paid -5 290 -4 722
Net effect of currency translation in cash -50 108
Net increase/decrease in cash and cash equivalents 5 943 11 446
Cash and cash equivalents at end of period 7 084 12 334
BALANCE SHEET IN ACCORDANCE WITH IFRS (in CZK millions)
as at 30.9.2005 as at 31.12.2004
Assets 263 562 255 496
Fixed assets 243 327 245 108
Property, plant and equipment 171 400 178 935
Plant in service 283 480 280 092
Less accumulated provision for depreciation 127 185 118 224
Net plant in service 156 295 161 868
Nuclear fuel, at amortized cost 8 021 7 909
Construction work in progress 7 084 9 158
Other non-current assets 71 927 66 173
Investments and other financial assets, net 70 773 64 883
Intangible assets, net 1 154 1 290
Current assets 20 235 10 388
Cash and cash equivalents 7 084 1 141
Receivables, net 6 456 5 368
Income tax receivable 2 710 0
Materials and supplies, net 2 672 2 538
Fossil fuel stock 574 705
Other current assets 739 636
Equity and liabilities 263 562 255 496
Equity 169 779 162 477
Stated capital 58 303 59 218
Retained earnings and other reserves 111 476 103 259
Long-term liabilities 66 816 67 351
Long-term debt, net of current portion 36 901 38 071
Accumulated provision for nuclear decommissioning and fuel
storage 29 915 29 280
Deferred tax liability 14 856 11 885
Current liabilities 12 111 13 783
Current portion of long-term debt 1 838 1 809
Trade and other payables 7 143 8 703
Income tax payable 0 515
Accrued liabilities 3 130 2 756
CAPACITY, EMPLOYEES
as at 30.9.2005 as at 31.12.2004
Installed capacity (MW) 12 153 12 153
Number of employees (pers) 6 507 6 629
Number of employees per MW of installed capacity (pers/MW) 0.535 0.545
ELECTRICITY
1.-9./2005 1.-9./2004
Electricity supplied from CEZ, a. s. power plants (GWh) 40 809 42 051
Electricity sold by CEZ, a. s. in the Czech Republic (GWh) 38 046 36 286
of which: sold to regional distribution companies (GWh) 27 861 28 602
Domestic electricity price (CZK/MWh) 991 892
CEZ, a. s. electricity exports (GWh) 5 583 8 531
CEZ, a. s. electricity imports (GWh) 16 92
Trading outside the Czech Republic (sales) 343 1 530
REPORT D:
The energy utility, CEZ, has made a preliminary, non-binding bid for the Polish
coal company, Katowicki Holding Wenglowy S.A. The privatization tender for no
less than a 10% interest in the company was launched by the Polish government at
the end of August of this year.
The preliminary bid was made by CEZ in its pursuit to create a vertically
integrated energy Group in Central and Southeastern Europe, confirming CEZ's
commitment to the Polish energy market.
Katowicki Holding Weglowy S.A. is the second largest hard coal mining company in
Poland, with an annual volume of about 18.5 million tons of hard coal.
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
CEZ, a. s.
------------------------------
(Registrant)
Date: October 31, 2005
By:/s/ Libuse Latalova
Libuse Latalova
Head of Finance Administration