CEZ profit, hit by assets writedown in Romania

The shares of CEZ, the biggest Czech electricity producer, recorded the most significant decline in six weeks, after its second-quarter profit was below analysts’ estimates, after the assets depreciation in Romania, bloomberg.com informs.

More exactly, net income for the April to June period shrank to 3.75 billion koruna from 7.9 billion koruna a year earlier because of low electricity prices and a 900 million-koruna asset writedown in Romania, the company said in a statement on Tuesday.

The biggest Czech electricity producer slumped as much as 4.9 percent, the most since June 24. CEZ has slumped 25 percent in the past 12 months.

Also, Czech utility supplier decreased its full-year earnings guidance. CEZ says it cuts 2016 guidance for earnings before interest, tax, depreciation and amortisation (EBITDA) to 58 billion crowns (USD 2.38 billion) from 60 billion, mainly due to extended outages at its nuclear power plants.

asset writedown in Romaniaassets depreciationCEZCzech electricity producerelectricity priceskorunaprofit
Comments (0)
Add Comment