Wednesday, 25 May 2016

Cez report Q1 2016

Cez has for a long time been pushed down just like all the other utilities which means that I have a pretty big red figure in connection with this company. What happened upon the day of the release I no longer remember.

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.

In the financial statement we see that the sales have kept dropping even further so even for the mighty Cez the pillars start to shake as they have done for E.On and RWE since a long time. The sales are now down by -5% which is a lot. They have managed to control their costs but mainly due to luck with derivative trading, less interest on debt payment and joint-ventures performing better they ended up with higher earnings compared to Q1 in 2015.

I am a bit confused with Cez... first they said that they wanted to buy the coal + water from Vattenfall and then all of a sudden they pulled back and a Czech oligarch all of a sudden arrived with an offer. To me this feels very much like corruption. I cannot say that I was happy to see the assets of Vattenfall being bought by Cez so the outcome might be good but the way it happened confuses me and makes me concerned with the management.

Conclusion: Cez is in trouble like all the rest of them but seemed to have managed to pass the quarter well enough due to luck. I will remain as a shareholder but I start to have doubts concerning the management. I know they are strongly tied to the government and will most likely do things that sometimes are more in the interest of the government than the rest of the shareholders and I kind of accepted this when I bought the shares but that they would additionally maybe do things based on requests from oligarchs that I do not like.

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