Tuesday, May 16, 2017

Cez annual report 2016

Front page of the annual 2016 report from Cez

For the report in full please go here, to see the previous summary please visit Cez annual report 2015 and to find out more regarding Cez then click on analysis of Cez 2016.

As we can see in the table below Cez is on a slipping slope downwards and in the last two years they have not managed to bring in the money needed to pay out the dividend of 40 CZK per share that they have been doing for the last four years. The revenue dropped yet again compared to 2015 and very clearly they have not managed to balance that with decreased costs hence they only brought home 26.7 CZK per share. This is not a good result and they are spending a lot of money on maintenance of their plants and electrical network as well as being forced to write down assets especially in Turkey due to much less than expected profits being generated.

Financial statement for Cez 2016

It should also be stated that they are messing around with their reporting. They have previously reported the "group" and now they are doing a summary of that, see above, while in the IFRS regulated they only report the revenue and earnings for Cez. This means that they have reported all the revenue and earnings as being theirs while in reality they have only received a certain amount of those earnings paid back to them in dividends.

Conclusion: Cez is still not looking good and from my point of view they should not pay out dividends but I suspect that the government would not be pleased if they would not get their 40 CZK per share. I am not very happy with this investment but I will remain as a grumpy shareholder for now.

No comments: