CEZ Distribution Q3 EBITDA grows 120%; EPS at BGN 7.88 for 9m’19 (POSITIVE)

Q3’19 unconsolidated revenues of CEZ Distribution grew 10.2% YoY to BGN 83.3m, mainly on growth of the distribution tariffs while distributed electricity added 1.2% YoY. Total expenses, however, dropped 17.3% YoY on lower provisions (the company lost a court case against ESO in the comparable period) and lower energy losses. Note that Q3 energy losses declined to the record low of 6.24%. As a result, EBITDA surged 120.5% YoY to BGN 33.3m. Below the line, depreciation charges grew 12.5% on increased value of the depreciable assets and net financial cost increased by BGN 0.5m. Bottom line came to BGN 11.5m net profit vs BGN 2.3m net loss in Q3’18. 9m’19 unconsolidated revenues increased 5.1% YoY to BGN 261.2m while distributed electricity added 0.8%. EBITDA improved 24.1% to BGN 77.8m following the excellent Q3 quarter. The 12.4% YoY growth of depreciation expense and the 103.4% increase of financial cost (mainly on revaluation of financial assets), partly affected the profitability. Still, net profit improved 78% YoY to BGN 15.2m (EPS of BGN 7.88). IB debt on YtD basis added BGN 37m on increasing balance of loans from CEZ a.s. while CAPEX for the period amounted to around BGN 86m.