RPT-EARNINGS POLL-CEZ Q3 net profit seen rising 62 pct

 (Repeats story published on Nov 10)  
    * CEZ Q3 earnings 
    * Nov 15, 9.45 a.m. (0845 GMT) 
    * Net profit average forecast 5.59 billion crowns ($254.9 
million) 
     
    By Jan Korselt 
    PRAGUE (Reuters) - Central Europe's largest utility group, 
CEZ <CEZPsp.PR>, is expected to post a 62 percent jump in 
third-quarter net profit due to rising electricity prices and 
foreign acquisitions, a Reuters poll showed on Friday. 
    The average forecast of nine analysts was for the 
Czech-based company to post net profit of 5.59 billion crowns 
($254.9 million) up from 3.45 billion a year earlier. 
    Ten analysts gave an average net profit forecast of 21.36 
billion crowns for the nine months to the end of September, up 
47 percent from 14.58 billion in the same period last year. 
    Nine-month revenue was forecast to rise 25 percent to 111.97 
billion crowns. Revenue for the third quarter alone was also 
expected to rise by a quarter to 34.63 billion. 
    CEZ has been on an acquisition trail throughout central and 
Eastern Europe, buying power generation plants and distribution 
assets in Poland, Bulgaria and Romania. 
    "We expect CEZ to show a 33.6 percent increase in 
third-quarter revenues driven by higher electricity prices, the 
consolidation of Romania's distribution company and the two 
Polish power plants," said Patria Finance analyst Tomas Gatek. 
    CEZ, the European Union member's most profitable company in 
2005, is awash with cash due to a gradual convergence of power 
prices in the region towards higher levels in neighbouring West 
European countries. 
    "We do not expect the results to provide an upward impulse 
for the stock as the recent growth in the share price has 
significantly lowered further upside," said Lukas Dufek, equity 
analyst at Komercni Banka. 
    CEZ stock, listed in Prague and Warsaw, has gained nearly 10 
percent since releasing half-year earnings in mid-August, having 
peaked at an all-time high of 901 crowns late last month. Shares 
traded at 895 crowns on Friday afternoon. 
    "Further growth is conditioned upon re-leveraging, which is 
a distant perspective in our view, with the exception of 
possible purchase of own shares from the government next year," 
said Dufek, who plans to revise his target price of 889 crowns 
after the results. 
    The Czech state holds 68 percent of CEZ, but government 
officials have been considering a stock market offering of about 
a 7 percent stake to aid the deficit-ridden budget. 
    CEZ has toyed with the idea of buying back a similar number 
of shares on the market to invest excess cash and revamp its 
capital structure. The plan has soothed investor concern about 
the government's stake sale leading to a drop in CEZ's shares. 
    The utility has traded at a multiple of nearly 19 times 
forecast 2006 earnings, a premium to about 16 times for European 
utility companies <.SX6P>, according to Reuters Estimates. 
 
    Consolidated figures in billions of crowns: 
 9M/06                Average   Median    9M 2005      Range 
 Sales                111.97    112.18     89.40   107.74-115.00 
 Core profit (EBITDA)  47.95     48.27     38.38    46.08- 49.40 
 Oper profit (EBIT)    31.42     31.78     23.20    29.74- 33.40 
 Net profit            21.36     21.40     14.58    19.58- 22.90 
 
 Q3/06                Average   Median    Q3 2005      Range 
 Sales                 34.63    34.90       27.69    30.56-37.80 
 Core profit (EBITDA)  13.81    14.11       10.79    11.92-15.20 
 Oper profit (EBIT)     8.32     8.60        5.64     6.54-10.10 
 Net profit             5.59     5.61        3.45     4.22- 7.09 
 
 
    The following equity houses took part in the poll: Atlantik 
FT, BH Securities, Citigroup, Deutsche Bank, ING Wholesale 
Services, KBC/Patria Finance, Komercni Banka, Sal.Oppenheim, UBS 
Investment Research, Wood & Co. 
 
 ($1=21.93 Czech Crown) 
 ((Writing by Marek Petrus; Editing by Erica Billingham; Reuters 
Messaging: rm://marek.petrus.reuters.com@reuters.net; e-mail: 
prague.newsroom@reuters.com or marek.petrus@reuters.com; Tel: 
+420 224 190 477)) 
 
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  Keywords: UTILITIES CZECH CEZ