Friday, 27 November 2015

Cez report Q3 2015

Cez, Q3, 2015, report, front page

My eastern European electricity investment Cez arrived with their Q3 report. The share price has during the last six months not been going very well but it was not as a response directly to this report but I think the investment is down by around -20% right now (like almost all my electricity investments are). I have read several articles about the trouble Vattenfall is in and that they are forced to sell their coal plants and mines in Germany. Cez has given Vattenfall an offer on all of that including ten hydro plants. I hope that Vattenfall will accept the deal.

For the report in full please go here, to see the previous summary please visit Cez report Q2 2015 and to find out more regarding Cez then click on analysis of Cez 2015.

In the financial statement from Cez we see that they, as all the other energy companies, have increased their revenue and for the running nine months they are up with 4.4% and this I find very good. The costs, and this refers to purchased power and related services have increased far too much! It is up by 17.8% so I hope they are working on new deals there because such cost increases are not sustainable.

We have a net earnings for the nine months of 16.6 billion CZK which is almost 16% less than in 2014 for the same period and we are only up at 31 CZK per share so that 40 CZk per share dividend is looking high unless Q4 will become a true super-duper month with a cherry on the top but that I doubt. I do not think that they will decrease the dividend because the government would not like to see that but they are up sniffing at a very high %-age of the earnings paid out in dividends and I do generally not like that.

Cez, Q3, 2015, financial statement

Conclusion: At least the purchased power did not increase any more but have remained at the same level as in Q2. They must however manage to change that! Cez like all the others are having a tough time today and this final quarter was awful. I will remain shareholder in Cez and I hope I will soon own a bit more electrical production units here in Germany.

No comments: