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CEZ Distribution Bulgaria cuts net profit to 9 months due to higher expenses

SOFIA (Bulgaria), November 1 (SeeNews) – Electricity grid operator CEZ Distribution Bulgaria [BUL:CEZD] said its self-sustaining net profit fell to 27.1 million lev ($ 16.3 million / 13.9 million euros) during the period January-September 2021, from 37.1 million lev. during the same period of last year.

CEZ Distribution Bulgaria’s expenses reached 260.4 million Lev in the first nine months of this year, up from 226.5 million Lev a year earlier, the company said in an interim financial report last week.

The company’s revenues amounted to some LE 289.6 million during the reporting period, compared to LE 268.4 million in the first nine months of 2020.

Last month, the financial and energy group Eurohold Bulgaria [BUL:EUBG] said the financial regulator had approved revised takeover bids from Dutch-based Eastern European Electric Company BV (EEEC), a unit wholly owned by the group, for 33% stakes each in Sofia-based CEZ Distribution . [BUL:CEZD] and CEZ Electro. EEEC will acquire 636,240 shares in the capital of CEZ Distribution for a total of 185.2 million levs. Eurohold Bulgaria also said that EEEC plans to finalize the acquisition of the respective stakes in the two companies by the end of November.

Earlier this year, Eurohold completed the acquisition, via EEEC, of ​​a 67% stake in CEZ Distribution Bulgaria and CEZ Electro Bulgaria from Czech energy group CEZ, as well as 100% of the shares of licensed electricity trader CEZ Trade Bulgaria, IT services company CEZ. ICT Bulgaria, the Free Energy Project Oreshetz solar park, the Bara Group biomass power plant, and CEZ Bulgaria, the coordinator of the CEZ group units in Bulgaria, for a total of 335 million euros ($ 387.5 million)

CEZ Distribution Bulgaria operates the electricity grid in the Sofia region and parts of western and northern Bulgaria.

At 12:15 am CET, shares of CEZ Distribution were trading down 0.69% at 286 lev on the Bulgarian Stock Exchange floor.

(1 euro = 1.95583 levs)

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