CEZ Distribution posts 2.8x y/y surge in 9M16 consolidated net income to BGN 17.6m, according to the Company’s consolidated 9M16 financial statements.
The Company which operates the electric distribution network in Southwestern Bulgaria, reports considerable profitability improvement in 2016 with net income improving ever since the start of the year. In 3Q16 alone the Company booked BGN 5.4m of net profit, up 4.5x y/y.
The overall result is due both to rising revenues and optimized costs. Revenues are up15% y/y to BGN 289.4m while costs expanded only 9% y/y to BGN 268.8 on lower external service expenses.
CEZ Electro profit also surging
CEZ Electro (1CZ BU) net profit triples for the 9M16 to BGN 17.1m, according to the Company’s 9M16 financial statements. The electricity trading Company in Southwestern Bulgaria booked BGN 9.7m of net profit in 3Q16 alone despite lower electricity prices which it translated into lower costs.
CEZ Distribution performs the operation of the electricity distribution network and facilities. It distributes electricity to the end customers in West Bulgaria. The fixed assets of CEZ Distribution are substantial as network and other equipment are property of the company. It covers an area of 40 000 sq. km and 2.9 m residents.
CEZ Electro supplies the electricity in the same region and manages the Group’s marketing and sales strategy. As a natural monopoly, the distribution of electricity is under strict regulation, including the determination of electricity prices and all fees that the Company receives as revenues. CEZ Distribution and CEZ Electro depend on the retail electricity prices set by the regulator.