CEZ Attributes Profit Fall To Taxes, Power Prices, Unrepeated Gains
August 16 2011 - 5:22AM
Dow Jones News
Czech state-owned power company CEZ AS (BAACEZ.PR) Tuesday said
its 40% annual decline in second-quarter net profit was due to
lower power prices than a year earlier, new taxes and
foreign-exchange losses, as well as gains in 2010 that didn't recur
this year.
Last year, CEZ benefited from a 600 million koruna ($35.4
million) rise in shares in Hungary's MOL Nyrt. (MOL.BU), while this
year those shares didn't match the gain, said Martin Roman, CEZ's
chairman and chief executive. CEZ last year also gained over CZK1
billion in profit from sales of carbon emissions allowances, which
weren't repeated, he said.
Profit was also hit by a CZK2.6 billion annual decline in
earnings before interest, taxes, depreciation and amortization due
to lower power prices than in the second quarter of last year, CEZ
Finance Chief Martin Novak said.
The Czech koruna's appreciation on year and new taxes on revenue
from solar power generation, as well as taxes on the market value
of carbon emissions allowances the company got for free, also hit
profit, the company said.
On Monday, the company said its net profit for the second
quarter fell 40% to CZK6.74 billion.
-By Sean Carney, Dow Jones Newswires; +420 222 315 290,
sean.carney@dowjones.com
Go to http://blogs.wsj.com/emergingeurope/ for the new Dow Jones
blog on Central and Eastern Europe, covering business, politics,
society and more, written by our correspondents across the
region.
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