CEZ turns to negative EBITDA in Bulgaria in H1

SOFIA (Bulgaria), August 12 (SeeNews) – Czech energy group CEZ said on Tuesday it turned to negative earnings before interest, taxes, depreciation and amortisation (EBITDA) of 200 million Czech crowns ($9.6 million/7.2 million euro) from power production and trade in Bulgaria in the first half of 2014 from a positive EBITDA of 100 million crowns a year earlier.

EBITDA from power distribution and sales in Bulgaria dropped 16% on the year to 300 million crowns through June due to a negative price decision from December 30, 2013, CEZ said in a financial report.

The output of CEZ’s coal-fired thermal power plant (TPP) in Varna, which has an installed capacity of 1,260 megawatts, increased slightly mainly due to higher demand for supplies to the regulated market.

In June, CEZ signed an amendment to its investment memorandum with Bulgaria to invest 40 million euro in Varna TPP. The company has extended the initial investment framework to include energy efficiency and environmental projects.

The Czech company is facing proceedings in Bulgaria to revoke the licence of its sales company CEZ Electro. The delicensing procedure - which alongside CEZ targets also the country's other two power distributors owned by Czech firm Energo-Pro and Austria's EVN - was launched by Bulgaria's State Energy and Water Regulatory Commission in April.

CEZ began operations in Bulgaria in November 2004. Its local power distribution and sales business covers the city of Sofia, the Sofia region and parts of western and northern Bulgaria.

(1 euro = 27.839 Czech crowns)

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