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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 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- ________
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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:
REPORT 1:
PRESS RELEASE CONCERNING RESULTS OF CEZ OPERATIONS
Net Profit of CEZ Group (consolidated) in 1st Q of Year Increased by 39 percent
to CZK 10.4 billion
In the 1st Q of this year, the CEZ Group achieved net profit in the amount of
CZK 10.371 million, which represents a year-on-year increase of 39 percent. The
operating profit of the Group amounted to CZK 14.816 million.
The increase resulted from an increase in the business margin, higher sales, a
significant improvement in the operations of the Bulgarian distributors in the
CEZ group, and the addition of the Romanian Electrica Oltenia to the Group. As
opposed to the increasing revenues, the costs were kept under control and grew
at a slower rate.
"The results of operations reveal the very good situation in the company,
especially at the operational level. The results increasingly reflect our
foreign acquisitions. Operational profit of the Bulgarian distributors has
almost doubled on a year-on-year basis. In addition to the Bulgarian and
Romanian distributors, we managed to acquire the first production facilities
abroad this year. As a result of the acquisition of the Polish power plants,
Elcho and Skawina, and, newly, Bulgarian Varna, our production capacity has
increased by as much as 17 percent. This is promising for us to continue to give
our shareholders good news," said Martin Roman, Chairman of the Board of
Directors and General Manager of CEZ.
In the first quarter of this year, power generation at power plants within the
CEZ Group reached 16,763 GWh, which means a year-on-year increase by 4 percent.
From the historical point of view, these are the highest figures reached by CEZ
in the first quarter.
Power demand in the Czech Republic has increased on a year-on-year basis by 5.7
percent, which would be equal to 4.4 percent after taking into account the
influence of the cold weather in the first quarter of the year. The Czech
economy continues to grow, showing that power consumption is always linked to
the GDP development with a coefficient of roughly 0.6. Household consumption has
grown by 6.7 percent and industrial consumption by 6.5 percent.
As of the end of March, the CEZ Group had 29,817 employees, which means a
year-on-year reduction by 2,271 persons, in particular due to the pending
integration of the CEZ Group.
"The results of operation of the first quarter require us to change the
anticipated net profit of the CEZ Group for this year. Net profit should be at
the level of CZK 27.2 billion, which is more than originally planned by 0.5
billion," said Petr Voboril, Head of Finance.
2
REPORT 2:
CEZ, a. s.
BALANCE SHEET in accordance with IFRS as of March 31, 2006 (in CZK Millions):
------------ ----------
current year prior year
------------ ----------
Assets 283,249 274,208
Fixed assets 256,860 258,658
Property, plant and equipment 171,505 175,555
Plant in service 289,320 291,100
Less accumulated provision for depreciation 132,312 130,368
Net plant in service 157,008 160,732
Nuclear fuel, at amortized cost 7,056 7,823
Construction work in progress 7,441 7,000
Other non-current assets 85,355 83,103
Investments and other financial assets, net 84,661 81,816
Intangible assets, net 694 1,287
Current assets 26,389 15,550
Cash and cash equivalents 9,399 983
Receivables, net 9,602 8,008
Income tax receivable 2,013 1,399
Materials and supplies, net 2,776 2,732
Fossil fuel stock 567 730
Emission rights 240 125
Other current assets 1,792 1,573
Equity and liabilities 283,249 274,208
Equity 182,639 174,276
Stated capital 58,414 58,237
Retained earnings and other reserves 124,225 116,039
Long-term liabilities 65,345 66,329
Long-term debt, net of current portion 29,385 30,480
Accumulated provission for nuclear
decommissioning and fuel storage 35,697
Other long-term liabilities 152 152
Deferred tax liability 15,034 13,021
Current liabilities 20,231 20,582
Short-term loans
Current portion of long-term debt 7,612 7,770
Trade and other payables 8,861 9,899
Income tax payable
Accrued liabilities 3,758 2,913
3
INCOME STATEMENT in accordance with IFRS as of March 31, 2006 (in CZK Millions):
-------------- -----------------
current period prior year period
-------------- -----------------
Revenues 23,960 17,696
Sales of electricity 23,028 16,906
Heat sales and other revenues 932 790
Operating expenses 14,658 10,752
Fuel 4,096 3,479
Purchased power and related services 4,910 1,568
Repair and maintenance 417 397
Depreciation and amortization 3,405 3,364
Salaries and wages 926 874
Materials and supplies 389 369
Emission rights, net -584
Other operating expenses 1,099 701
Income before other expense/income and income taxes 6,944
Other expenses/income -860 708
Interest on debt, net of capitalized interest 440
Interest on nuclear provisions 402 512
Interest income -28 -13
Foreign exchange rate losses/gains, net -416 -7
Losses/gains on sale of subsidiaries 2
Other expenses/income, net -1,214 -224
Income before income taxes 10,162 6,236
income taxes 2,013 1,672
net income 8,149 4,564
CASH FLOW STATEMENT in accordance with IFRS for three-months period ended
March 31, 2006 (in CZK Millions):
-------------- -----------------
current period prior year period
-------------- -----------------
OPERATING ACTIVITIES:
Income before income taxes 10,162 6,236
ADJUSTMENTS TO RECONCILE INCOME BEFORE INCOME TAXES TO NET CASH PROVIDED
BY OPERATING ACTIVITIES:
Depreciation and amortization and asset write-offs 3,406 3,364
Amortization of nuclear fuel 829 906
Gain/Loss on fixed assets retirements, net -2 -11
Foreign exchange rate loss/gain, net -416 -7
Interest expense, interest income and dividends income, net -1,234 427
Provision for nuclear decommissioning and fuel storage 47 38
Valuation allowances, other provisions and other adjustments 41 -472
CHANGES IN ASSETS AND LIABILITIES:
Receivables -18 -394
Materials and supplies -44 -11
4
Fossil fuel stocks 163 34
Other current assets -377 134
Trade and other payables 110 -1,107
Accrued liabilities 942 547
Cash generated from operations 13,609 9,684
Income taxes paid -615 -1,048
Interest paid, net of interest capitalized -407 -415
Interest received 35 14
Dividends received
Net cash provided by operating activities 12,622 8,235
INVESTING ACTIVITIES:
Acquisition of subsidiaries and associates -130 -2,344
Proceeds from disposal of subsidiaries and associates
Additions to property, plant and equipment and other -2,179 -2,077
non-current assets
Loans made -201
Proceeds from sales of fixed assets 12 867
Repayments of loans
Change in decommissioning and other restricted funds -1,107 -85
Total cash used in investing activities -3,605 -3,639
FINANCING ACTIVITIES:
Proceeds from borrowings
Payments of borrowings -707 -711
Dividends paid 29 31
Acquisitions/sale of treasury shares 91 -426
Total cash provided by (used in) financing activities -587 -1,106
Net effect of currency translation in cash -14 -5
Net increase/decrease in cash and cash equivalents 8,416 3,485
cash and cash equivalents at the beginning of period 983 1,141
cash and cash equivalents at end of period 9,399 4,626
STATEMENT OF CHANGES IN EQUITY in accordance with IFRS (in CZK Millions):
--------------- -------------- -------- ------------
Stated Capital Fair Value and Retained Total Equity
Other Reserves Earnings
--------------- -------------- -------- ------------
December 31, 2004 59,218 80 103,179 162,477
Net income 4,564 4,564
Acquisition of treasury shares -679 -679
Sale of treasury shares 331 -79 252
Change in fair value of CF hedges
recognized in equity -25 -25
March 31, 2005 58,870 55 107,664 166,589
December 31, 2005 58,237 613 115,426 174,276
Net income 8,149 8,149
Sale of treasury shares 177 -86 91
Change in fair value of CF hedges
recognized in equity, net 105 105
5
Share options 18 18
March 31, 2006 58,414 736 123,489 182,639
REPORT 3:
GROUP CEZ
Consolidated Income Statement in accordance with IFRS (in CZK Millions)
1-3/2005 1-3/2006
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Revenues 33,019 41,547
Sales of electricity 30,741 38,459
Heat sales and other revenues 2,278 3,088
Operating expenses 21,892 26,731
Fuel 2,299 2,657
Purchased power and related services 9,782 12,770
Repairs and maintenance 527 672
Depreciation and amortization 5,062 5,582
Salaries and wages 2,573 2,885
Materials and supplies 828 938
Emission rights -615
Other operating expenses 821 1,842
Income before other expense/income and
income taxes 11,127 14,816
Other expenses/income 1,158 1,109
Interest on debt, net of capitalized interest 462 420
Interest on nuclear and other provisions 605 473
Interest income -83 -99
Foreign exchange rate losses/gains, net -2 -167
Gain(-)/Loss on sale of subsidiary/associate 187
Negative goodwill write-off -20
Other expenses/income, net 63 539
Income from associates -54 -57
Income before income taxes 9,969 13,707
Income taxes 2,531 3,336
Net income 7,438 10,371
NET INCOME ATTRIBUTABLE TO:
Equity holders of the parent 7,115 9,989
Minority interests 323 382
6
GROUP CEZ
Consolidated Balance Sheet in accordance with IFRS (in CZK Millions)
----------- -----------
k 31.3.2005 k 31.3.2006
----------- -----------
Assets 324,209 336,266
Fixed assets 280,400 277 516
Plant in service 439,416 441,149
Less accumulated provision for depreciation 199,756 205,331
Net plant in service 239,660 235,818
Nuclear fuel, at amortized cost 7,860 7,094
Construction work in progress 11,570 12,379
Investment in associates 929 774
Investments and other financial assets, net 13,811 15,220
Intangible assets, net 6,046 5,825
Deferred tax assets 524 406
Current assets 43,809 58,750
Cash and cash equivalents 16,791 24,641
Receivables, net 14,792 19,205
Income tax receivable 1,478 2,217
Materials and supplies, net 3,671 4,414
Fossil fuel stock 756 552
Emission rights 134 240
Other current assets 6,187 7,481
Equity and liabilities 324,209 336,266
Equity 191,289 202,130
Equity attributable to equity holders of the parent 176,673 186,961
Stated capital 58,237 58,414
Retained earnings and other reserves 118,436 128,547
Minority interests 14,616 15,169
Long-term liabilities 81,429 80,556
Long-term debt, net of current portion 30,586 29,335
Accumulated provision for nuclear
decommissioning and fuel storage 35,869 35,982
Other long-term liabilities 14,974 15,239
Deferred taxes liability 18,555 21,579
Current liabilities 32,936 32,001
Short-term loans 265 1,619
Current portion of long-term debt 7,888 7,774
Trade and other payables 16,243 13,408
Income tax payable 630 543
Accrued liabilities 7,910 8,657
7
GROUP CEZ
Consolidated Statement of Changes in Equity in accordance with IFRS (in CZK
Millions)
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Share allocated to stockholders of the parent company
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Registered Differences Valuation Undistribute Total Minority Total
capital from Differences profit shares equity
Exchange
rate
conversion
---------- ----------- ----------- ------------ ----- -------- -------
December 31, 2004 59,218 -2 85 112,796 172,097 6,350 178,447
Change in fair value of available-for-sale 35 35 3 38
financial assets recognized in equity
Change in fair value of cash flow hedges -26 -26 -26
recognized in equity
Translation differences -150 -150 -63 -213
Other movements n -4 -4 -2 -6
---------- ----------- ----------- ------------ ----- -------- -------
Gain and loss recorded directly to equity -150 9 -4 -145 -62 -207
Net Income for period 1-3/2005 7,115 7,115 323 7,438
---------- ----------- ----------- ------------ ----- -------- -------
Total gains and losses for period 1-3/2005 -150 9 7,111 6,970 261 7,231
Effect of acquisition of SKODA PRAHA 111 111 111
on equity
Acquisition of treasury shares -679 -679 -679
Sale of treasury shares 331 -78 253 253
Change in minority due to acquisitions 2,343 2,343
March 31, 2005 58,870 -152 94 119,940 178,752 8,954 187,706
---------- ----------- ----------- ------------ ----- -------- -------
December 31, 2005 58,237 -789 588 118,637 176,673 14,616 191,289
Change in fair value of available-for-sale -4 -4 -3 -7
financial assets recognized in equity
Available-for-sale financial assets removed 3 3 3
from equity to P&L
Change in fair value of cash flow hedges 105 105 105
recognized in equity
Translation differences 85 85 148 233
Other movements 1 1 1
---------- ----------- ----------- ------------ ----- -------- -------
Gain and loss recorded directly to equity 85 104 1 190 145 335
Net Income for period 1-3/2006 9,989 9,989 382 10,371
---------- ------------ ----------- ------------ ----- -------- -------
Total gains and losses for period 1-3/2006 85 104 9,990 10,179 527 10,706
Sale of treasury shares 177 -86 91 91
Share options 18 18 18
Change in minority due to acquisitions 26 26
March 31, 2006 58,414 -704 710 128,541 186,961 15,169 202,130
REPORT 4
CEZ HOLDS BACK WITH GOING PUBLIC ON WARSAW STOCK EXCHANGE
The plans of the CEZ energy corporation for a dual listing on the Warsaw stock
exchange were seriously affected by instability in the wake of the plunge of CO2
trading allowances, to which electricity prices in the European market responded
by also decreasing. This of course had an impact on the stock prices of energy
companies, including CEZ.
8
The primary thrust of CEZ behind the listing on the Warsaw Stock Exchange is
aimed at Polish pension funds, so that an initial listing with a volatility of
stock of this magnitude would be unfortunate timing. CEZ will therefore wait for
a more propitious moment, which is likely to arrive once the outlines of the
National Allocation Plans for the next period (NAP2) have been published.
This decision bears no connection with the development on the Polish political
scene, nor is any logical connection imaginable: we never assumed that the
Polish state would become one of our stockholders.
9
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: May 18, 2006
/s/ Libuse Latalova
By: ------------------------------
Libuse Latalova
Head of Finance Administration