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2015/03/04 / Erste Group Research
- CEZ reported FY14 EBITDA at CZK 72.5bn (-11.6% y/y). The result was driven mainly by declining wholesale power prices and an extremely warm and dry winter in the Czech Republic. The group provided guidance for FY15 EBITDA at CZK 70bn (-3.4% y/y). The negative impact of falling power prices on EBITDA will be smaller but still sizeable in 2015.

- CEZ generated positive free cash flow in FY14 and reduced its net debt by CZK 9.2bn (on CZK 147.2bn). Nevertheless, the ratio of net debt to EBITDA deteriorated slightly to 2.03x (FY13: 1.91x).

- The group plans to spend CZK 37.9bn on CAPEX in 2015. This amount should stabilize around CZK 25-28bn per year during 2016-19. However, a large-scale acquisition such as Slovenské elektrárne cannot be ruled out.

- In spite of the solid fundamentals in comparison to most of its peers, the uncertainty in the acquisition plans are the biggest driver for the higher spreads of CEZ bonds in comparison to the ‘A-‘ peers, especially at the long end of the curve, in our view.

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General information

AuthorErste Group Research
Product nameCredit News
Topic in focusCredits/ Corporate bonds
Economy in focusCEE
Currency in focusEuro
Sector in focusUtilities


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