CEZ turns up the heat

Czech energy company CEZ, the biggest foreign firm on the Warsaw Stock Exchange, brought in a record profit of CZK 28.8 (zł.4) billion for 2006, 29-percent higher than in 2005. CEZ attributes the positive figures to an increased demand for energy, a stronger Czech currency and continuous acquisition. The company's projections for this year predict an even greater net profit of CZK 35.1 (zł.4.81) billion, thanks to increased efficiency at the Temelin nuclear plant in the Czech Republic.

The rate of foreign acquisitions doubled for the company in 2006, producing a total EBITDA of CZK 4.7 (zł.0.6) billion. Poland was the site of the two most important takeovers: firms Elcho and Skawina, which use coal to produce 592 and 238 megawatts, respectively.

As for the investment in Skawina, CEZ is considering expanding the plant and increasing production to 660 megawatts. "At the moment, we are examining all the opportunities," said the CEO, Martin Roman. The estimated cost of the investment is almost EUR 1 (zł.3.9) billion.

"Poland is the most important market for us and we want to expand our presence there," Roman declared. He did note, however, that the outcome and projects depend to a large extent on efficiency in the privatization of energy companies.

The company has been listed on the Warsaw bourse since October 2006 and is included in the blue-chip WIG20 index.