Home » Business » CFO sees CEZ performance supported by higher output, renewables

CFO sees CEZ performance supported by higher output, renewables

Czech electricity producer CEZ sees future profitability supported by higher production of traditional and nuclear sources as well as growing portfolio of renewables, but power prices will be the key factor, said. Speaking after stronger-than-expected second quarter results, Novak said power prices may have stabilised and have tendency to grow slightly but the company expects no fundamental turnaround or significant growth. “We see we are succeeding in acquiring new assets in renewables and energy services, increasing internal productivity and mainly increasing output at traditional and nuclear sources,” Novak and Bloomberg in a joint interview. “If everything goes according to plan, nuclear sources will see a big increase compared with the probably toughest year 2016… so the outlook for the future – I am not talking specifically about 2018 – does not look bad. Of course power price will play a key role.” Net profit in the future will be affected negatively by an end of capitalisation of interest and higher write-offs caused by the commissioning of a new power plant, Novak said. Earlier, CEZ raised its 2017 net profit outlook to 19 billion crowns from 17 billion. The company also increased its outlook for earnings before interest, taxes, depreciation and amortisation (EBITDA) to 53 billion crowns from 52 billion. He said that despite the stabilisation of prices, the company was not planing changes to its hedging strategy of selling large portion of its output ahead. He also said the firm was concentrating on western Europe and renewable acquisitions and the planned sale of E.ON’s 47 percent stake in power plant group Uniper . Novak said CEZ did not expect any significant impact of an outage caused by fire at its hard coal-burning Detmarovice plant in late July.

Share This Post

Leave a Reply

Your email address will not be published. Required fields are marked *