CEZ Distribution audit with no difference to preliminary figures (NEUTRAL)

The audited unconsolidated report of CEZ Distribution resulted in no differences with preliminary figures. Revenues added 2.5% YoY to BGN 361.5m while distributed electricity declined 1.2%. EBITDA surged 30.6% to BGN 103.5m mainly on the better regulatory pricing during H2’19 and reduced energy losses (8.01% vs 9.06% in 2018). The 11.4% YoY growth of depreciation expense and the 33.8% increase of financial cost partly reduced the profitability. Still, net profit improved almost 5-fold to BGN 18.7m (EPS of BGN 9.72). IB debt added BGN 30.6m YoY on increasing balance of loans from CEZ a.s. and introduction of IFRS 16 while CAPEX for the period amounted to BGN 111.5m.