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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 March 2006
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- ________
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The following information was filed by CEZ, a. s. in Czech language with the
Prague Stock Exchange as required by its rules and regulations:
2005 PRELIMINARY UNAUDITED GROUP RESULTS OF CEZ GROUP
NET PROFIT OF CEZ GROUP REACHES 22.3 BILLION CROWNS, REPRESENTING 56%
YEAR-ON-YEAR GROWTH
Under IAS, the CEZ Group achieved a net profit of CZK 22.3 billion, which
represents an year-on-year increase of CZK 8 billion. Aside from the group's
improved operating results, the increase in net profit was also influenced by
the acquisition of four distribution companies in Southeastern Europe. Further,
one-time effects in connection with the acquisitions made a contribution; for
instance, the set-off the badwill of Romanian Oltenia had the positive effect of
increasing net profit by CZK 2.6 billion.
"In addition to very good operating results, the expansion of the CEZ Group also
contributed to the increase in net profit. The operating figures of the
Bulgarian distribution companies began to have an impact on the results of the
CEZ Group throughout the year, those of Romanian distributor, Electrica Oltenia,
only in the last quarter. This year, the results of Romanian Oltenia will be
part of the group results for the entire year, so that - also with a view to the
acquisition of two Polish power plants this year - one may say that the results
of the CEZ Group continue to rise. Other potential acquisitions also look
hopeful, such as the purchase of a Bulgarian power plant in Varna; and the
savings stemming from the integration of the CEZ Group in the Czech Republic
will continue to make a contribution as well," commented Martin Roman, Chairman
of the Board and CEO of CEZ.
The operating result increased year-on-year by 49% to CZK 294 billion, whereas
revenues grew faster than expenses. Operating revenues rose by 21.8% to CZK
125.1 billion, whereas operating expenses only increased by 15.4 % to CZK 95.7
billion.
As of the end of last year, the CEZ Group consisted of a total of 93 companies,
of which 36 were consolidated via the full-equity method, and 5 via the
equivalence method. The results newly and primarily reflect, throughout the
entire year, the results of the three Bulgarian distribution companies. For the
last quarter, they also comprise the results of the Romanian distribution
company, Electrica Oltenia.
As of the end of 2005, the CEZ Group employed a work force of 29,905. The
year-on-year growth of 7,137 is due to the 7,662 staff members of four
international distributors in Southeastern Europe, whereas staff was reduced by
525 in the CEE region.
GROUP CEZ
Consolidated Income Statement in accordance with IFRS
(in CZK Millions)
2004 2005
- ------------------------------------------------ -------- --------
Revenues 102,670 125,083
Sales of electricity 92,183 115,949
Heat sales and other revenues 10,487 9,134
2004 2005
- ------------------------------------------------ -------- --------
Operating expenses 82,885 95,663
Fuel 9,305 9,010
Purchased power and related services 26,519 37,474
Repairs and maintenance 4,872 4,229
Depreciation and amortization 19,842 20,737
Salaries and wages 11,368 13,426
Materials and supplies 4,625 4,020
Emission rights 0 -1,053
Other operating expenses 6,354 7,820
Income before other expense/income and 19,785 29,420
income taxes
Other expenses/income 1,284 2,097
Interest on debt, net of capitalized interest 1,823 1,800
Interest on nuclear provisions 2,425 2,447
Interest income -721 -437
Foreign exchange rate losses/gains, net -1,765 266
Gain(-)/Loss on sale of subsidiary/associate
Negative goodwill write-off 0 -1,704
Other expenses/income, net 244 -343
Income from associates -722 -102
Income before income taxes 18,501 27,323
Income taxes 4,233 5,025
Net income 14,268 22,298
Net income attributable to:
Equity holders of the parent 13,213 21,452
Minority interests 1,055 846
Earning per Share in CZK - basic 22.3 36.3
Earning per Share in CZK - diluted 22.3 36.2
GROUP CEZ
Consolidated Balance Sheet in accordance with IFRS
(in CZK Millions)
2004 2005
- ------------------------------------------------------ ------- -------
Assets 299,250 324,221
Fixed assets 271,725 280,412
Plant in service 402,864 439,417
Less accumulated provision for depreciation 182,932 199,756
Net plant in service 219,932 239,661
2004 2005
- ------------------------------------------------------ ------- -------
Nuclear fuel, at amortized cost 7,956 7,860
Construction work in progress 11,308 11,570
Investment in associates 2,011 929
Investments and other financial assets, net 26,426 13,811
Intangible assets, net 3,379 6,057
Deferred tax assets 713 524
Current assets 27,525 43,809
Cash and cash equivalents 8,942 16,791
Receivables, net 9,189 14,792
Income tax receivable 26 1,478
Materials and supplies, net 3,333 3,671
Fossil fuel stock 724 756
Emission rights 0 134
Other current assets 5,311 6,187
Equity and liabilities 299,250 324,221
Equity 178,447 191,305
Equity attributable to equity holders of the parent 172,097 176,687
Stated capital 59,218 58,237
Retained earnings and other reserves 112,879 118,450
Minority interests 6,350 14,618
Long-term liabilities 82,449 81,424
Long-term debt, net of current portion 38,140 30,586
Accumulated provision for nuclear
decommissioning and fuel storage 29,441 35,864
Other long-term liabilities 14,868 14,974
Deferred taxes liability 15,603 18,556
Current liabilities 22,751 32,936
Short-term loans 240 265
Current portion of long-term debt 3,439 7,888
Trade and other payables 12,587 16,243
Income tax payable 1,227 629
Accrued liabilities 5,258 7,911
GROUP CEZ
Consolidated Cash Flow Statement in accordance with IFRS
(in CZK Millions)
2004 2005
- ----------------------------------------------------------- ------- -------
Cash and cash equivalents at beginning of period 5,023 8,942
Operating activities: 36,641 43,895
Income before income taxes 18,501 27,323
Depreciation and amortization and asset write-offs 13,549 20,757
Amortization of nuclear fuel 2,409 3,056
(Gain)/Loss in fixed assets retirements -806 61
Foreign exchange rate loss (gain) -111 266
Interest expense, interest income and dividends income, net 837 1,633
Provision for nuclear decommissioning and fuel storage 500 1,056
Provisions for doubtful accounts, environmental claims
and other adjustments -1,179 -936
Income from associates -932 -102
Changes in assets and liabilities: -1,054 -2,020
Income taxes paid -5,440 -5,946
Interest paid, net of interest capitalized -1,007 -1,927
Interest received 226 444
Dividends received 1,315 230
Investing activities: -30,500 -23,970
Financing activities: -1,935 -11,919
Net effect of currency translation on cash -287 -157
Cash and cash equivalents at end of period 8,942 16,791
GROUP CEZ
Consolidated Statement of Changes in Equity in accordance with IFRS
(in CZK Millions)
Attributable to Equity Holders of the Parent
-----------------------------------------------------------------------------
Fair
Value
and
Stated Translation Other Retained Minority Total
Capital Differences Reserves Earnings Total Interests Equity
- ------------------------------------------------ ------- ----------- -------- -------- ------- --------- -------
December 31, 2003 59,152 1 -36 102,880 161,997 9,078 171,075
Net Income - 2004 13,213 13,213 1,055 14,268
Dividends declared to shareholders of the parent -4,737 -4,737 -4,737
Dividends declared to minority interests -1,172 -1,172 -261 -1,433
Gain on sale of subsidiary CEPS, net of tax 2,436 2,436 2,436
Effect of acquisition of SKODA PRAHA
on equity 331 331 331
Change in fair value of cash flow hedges
recognized in equity -690 -690 -690
Attributable to Equity Holders of the Parent
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Fair
Value
and
Stated Translation Other Retained Minority Total
Capital Differences Reserves Earnings Total Interests Equity
- ------------------------------------------------ ------- ----------- -------- -------- ------- --------- -------
Cash flow hedges removed from equity 621 621 621
Acquisition of treasury shares -488 -488 -488
Sale of treasury shares 554 -222 332 332
Change in minority due to acquisitions 0 -3,748 -3,748
Contribution to equity 82 82 225 307
Other -3 190 -14 173 1 174
December 31, 2004 59,218 -2 85 112,796 172,097 6,350 178,447
Net Income - 2005 21,452 21,452 846 22,298
Dividends declared to shareholders of the parent -5,309 -5,309 -5,309
Dividends declared to minority interests -1,198 -1,198 -536 -1,734
Acquisition of treasury shares -1,312 -1,312 -1,312
Sale of treasury shares 331 -79 252 252
Change in fair value of cash flow hedges
recognized in equity 361 361 361
Cash flow hedges removed from equity -124 -124 -124
Effect of acquisition of Severoceske doly -9,068 -9,068 -9,068
on equity
Effect of acquisition of SKODA PRAHA 111 111 111
on equity
Share on equity movements of associates 0 0
Change in minority due to acquisitions 0 8,435 8,435
Translation differencies -787 -787 -478 -1,265
Other 266 -54 212 1 213
December 31, 2005 58,237 -789 588 118,651 176,687 14,618 191,305
ELECTRICITY 2004 2005
- --------------------------------------------------------- ------ ------
CEZ Group electricity supplied from power plants (GWh) 57,459 55,451
Electricity sold by CEZ Group in the Czech Republic (GWh) 54,719 57,360
CEZ Group electricity exports (GWh) 10,966 7,115
CEZ Group electricity imports (GWh) 152 391
Trading outside the Czech Republic (GWh) 1,977 1,068
Electricity sold by CEZ Group in Bulgaria (GWh) x 7,937
Electricity sold by CEZ Group in Romania (GWh) x 928
December December
31,2004 31,2005
- ------------------------------------ -------- --------
CEZ Group installed capacity (MW) 12 297 12 298
CEZ Group number of employees (pers) 22 768 29 905
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.
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(Registrant)
Date: March 21, 2006
By: /s/ Libuse Latalova
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Libuse Latalova
Head of Finance Administration