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CEZ shares fall, but the adjusted profit holds ground

12 August 2016
Electricity
energynomics

CEZ AS fell the most in more than six weeks after its second-quarter profit missed all analyst estimates and the utility cut its full-year earnings guidance amid protracted nuclear-reactor outages.

Investors sold the stock as the biggest Czech electricity producer said Tuesday its net income dropped 51 percent from a year earlier because of low power prices and an asset writedown in Romania. The utility cut its projection for 2016 earnings before interest, taxes, depreciation and amortization to 58 billion koruna ($2.4 billion) from 60 billion koruna, while keeping its forecast for adjusted profit, the basis for dividend payout, at 18 billion koruna.

“The reported figures were below our and market estimates from top to bottom,” Erste Group Bank AG analyst Petr Bartek, quoted by Bloomberg . “Still, the outlook for dividends is unchanged as adjusted net profit guidance was confirmed.”

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