Tuesday 6 May 2014

Cez annual report 2013

Cez, front page, annual, report, 2013

Cez arrived with their yearly report for 2013. I forgot to check what the daily movement of the share price was at the moment of publication but generally, since the beginning of 2014, the share price has been increasing. What was then in the report? Besides from that it seemed as if a 15 year old had been in charge of the design of the Cez annual report 2013.

First of they showed  a nice map of their activities in Europe so below you can see where they are active and what they are doing there based on the colour coding. Just looking roughly at it we see that they have stepped into a large part of Eastern Europe and are then also offering several of their services.

Cez, where are they?, Europe

More important though is the result they had in 2013 and in my opinion it was not good. They have a decreased installed capacity, decreased generated electricity, decreased sold electricity. There were maybe two half good things. One was that their sold heat increased by 20% and that they decreased their workforce by almost 15%. When I looked further into the report they did however pay more in salaries during 2013 than in 2012 so I hope that the decreased salary effect will kick in sometime during 2014.

Cez, key figures, 2009 to 2013

It was simply not a good year for Cez in 2013 and one very strongly contributing effect to that was also that the price for electricity decreased by 18% compared to 2012. That means a lot of money and they received the lowest average electricity price since eight years back. As I shareholder I hope that that inflation as well as electricity prices will increase again during 2014 since this will significantly push up the earnings again.

Conclusion: Cez has a tough time in comparison to the past and still they are making a lot of money. Their growth has flattened and that probably also comes from some failed attempts to enter new markets (Albania) and massive price demonstrations in others (Bulgaria). As a shareholder I am not concerned and times will yet again change to the better so I will remain as shareholder and might consider to increase when a good moment appears (such as me actually having some money to spare for investing...). To find out more then here you can find the previous analysis of Cez.

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