Romania: CEZ profit drop in 1H2015, production and distribution decreased

20. August 2015. / SEE Energy News

CEZ Group’s operating profit in Romania fell by 14% in the first half, to 65.5 million euro. Major reason was the negative impact of the suspension of the allocation of green certificates in the second half of last year for CEZ Cogealac wind park.

In the first six months, profit obtained in Romania before interest, taxes, depreciation and amortization (EBITDA) was 77.7MEUR. CEZ owns in Romania Fantanele and Cogealac wind parks and a number of SHP.

Production and distribution segment, CEZ Romania recorded in the first six months of profit EBITDA of about 14.5 million, down 55% from the same period last year, according to a financial report of the group.

The factors that led to the halving of production and distribution earnings per CEZ notes are “the negative effect of suspending the allocation of green certificates for Cogealac windfarm (from October 1, 2014)” , the lowest average price of electricity and lower average price of certificates.

CEZ energy production in Romania in the first six months stood at 726 GWh, up by 22% compared with the same period last year. Wind farms produced 696 GWh of CEZ in January-June, up by 26% compared to the same period in 2014, due to better weather conditions. SHP production decreased by 34% to 30 GWh. For the current year, CEZ Romania estimated energy production rising by 8%, to approximately 1.4 TWh.

Sales and distribution segment, EBITDA rose by 5% to around 51.8MEUR. The result for the first half of last year was significantly influenced by exceptional profits associated with a contract with the Romanian Post.

However, the gain in the first half of the year was supported by higher margins on electricity distributed, as a result of higher price and cost developments fixed. Czech group notes that, following the approval of an act by the European Commission in May, resumed individual notifications approval process for wind farms Fantanele and Cogealac West.

However, CEZ has initiated an accreditation process temporarily, after the entry into force in early June an amendment allowing temporary accreditation by ANRE and the resumption of allocating green certificates.

At the group level, CEZ reported revenues rising by 1%, to 3.74 billion euros for the first quarter and a profit of 560 million euros.

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