WOOD Flash – CEZ: 3Q20 adjusted results in line; write-downs on foreign subsidiaries and mining
This morning (10 November), CEZ reported an adjusted net profit of CZK 2.23bn (+330% yoy) on revenues of CZK 49.3bn (+3% yoy) and EBITDA of CZK 12.2bn +24% yoy. Compared to our estimates, EBITDA was fully in line, as was adjusted net profit (the base for dividend payments). On the bottom line, the reported loss was CZK 1.17bn, which was driven by impairments: on heating plants at its Polish subsidiary; (CZK 1.8bn); on windfarms and goodwill in Romania (CZK 1.5bn); and at the Severocesky mining unit (CZK 1.7bn), due to lower expected production volumes going forward. Compared to our forecast we note that the Sales segment came in more weak than expected: speaking to the company, this was due to the ESCO companies in Germany and Czech, as due to the pandemic, there were issues with companies placing orders.CEZ Group is a dynamic, integrated electricity conglomerate based in the Czech Republic and with operations in a number of countries of Central and Southeastern Europe and Turkey. Co. is an international group consisting of nearly 120 companies, Czech and foreign. Co.'s primary activities involve the production and transmission of electricity through nuclear, coal-fired and hydro power stations; production and distribution of heat and processing of secondary products generated during the production of electricity and heat as well as coal mining. Co. has operating companies in Poland, Bulgaria, Romania, the Netherlands, Ireland, Germany, Hungary, Albania, Turkey, Serbia, and Slovakia.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
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