One of my latest investments as well as my latest dividend payer, Cez, arrived with their latest Q2 report fro 2014. The market accepted it well and the share price jumped up around 1.5%. In the report we found that?
They have not been doing too well, but still much better than what they did in the Cez report Q1 2014 as I then report on and if you want to read the full Cez Q2 report then please go to their homepage by clicking the link.
By looking at their income statement we see that their revenue for the half year dropped by 11 billion which is around -11% and even though they claim to have decreased costs I tend to disagree especially when I see an -11% drop in revenue and no drop in costs but instead that it is flat compared to one year ago. The earnings come out pretty bad also with -40% in comparison to half year 2013... the only thing that is semi good is that the biggest change comes from the comparison of Q1 2013 and Q1 2014 and that Q2 2014 showed a slight improvement again but it is still far away from 2013.
The only thing that I kind of liked with the report was that they have managed to decrease their long term debt by almost 9.2 billion. The reason for the "kind of" is due to that it is easy to get cheap credit today for a company and maybe it would have been financially better to borrow money and buy back shares then to pay back some long term loans. Generally I will however always be pro that a company is decreasing their debt.
Conclusion: Cez bad business continued also this quarter and now with the summer running and few people having air conditioning in their area of activity I doubt that the Q3 figures will become any better. Our hopes must go for a very long and cold winter this year and increased inflation would also be great! I see no reason to sell my shares even though I am unhappy with the result and the high taxes I was forced to pay on the dividend.
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