EARNINGS POLL-Czech CEZ Q4 EBIT seen up 66 percent

...

* CEZ Q4 earnings

* Feb. 22, around 0815 GMT

* Q4 operating profit average forecast 10.32 billion Czech

crowns ($480.2 million); net profit average forecast 7.28

billion crowns.

By Jan Korselt and Jan Lopatka

Dominant Czech power firm CEZ is expected to report a 66 percent rise in fourth-quarter operating profit due to higher electricity prices and acquisitions, analysts said on Thursday.

A Reuters poll of nine analysts showed an average forecast for earnings before interest and tax (EBIT) of 10.32 billion crowns, up from 6.2 billion a year ago.

Net profit after minority interests was forecast up 6 percent at 7.28 billion crowns, or about 12.3 crowns per share. The year-earlier net profit was boosted by a one-off 1.7 billion crown gain related to goodwill.

Analyst Jakub Zidon at Ceska Sporitelna said the market would focus on CEZ's 2007 profit outlook when the company reports its results on Feb. 22. CEZ had last forecast 34 billion crowns profit for 2007, before minorities, below Zidon's forecast of 35.2 billion.

CEZ, majority state-owned, is the largest Czech company and has a growing appetite for acquisitions and investments abroad with the aim to become an energy leader in central and south-eastern Europe.

"There was a positive effect of the inclusion of the Varna plant (in Bulgaria), which was not there the previous year, of course higher prices, both export and domestic, and there were cost savings," said CA IB analyst Dan Karpisek, commenting on the fourth-quarter forecast.

Analysts added the company would also book profit on forward sales of carbon dioxide allowances and foreign exchange gains.

On the negative side, warmer weather hit consumption in the final quarter, although overall demand for power in the country rose 2.7 percent in 2006.

A total of 12 analysts forecast full-year net profit of 28.4 billion crowns after minorities, a 32.5 percent year-on-year rise, or 48 crowns per share.

They forecast full-year earnings before interest, tax, depreciation and amortisation (EBITDA) at 64.07 billion and EBIT of 40.49 billion.

CEZ itself had forecast full-year 2006 EBITDA of 63.7 billion, EBIT of 39.8 billion and net profit, before minorities, of 28.5 billion.

CEZ trades at 15.1 times forecast 2007 earnings, according to Reuters Estimates, a slight discount to the European utility index , which has a multiple of 16.

CEZ shares hit an all-time high of 1,013 crowns in December, but have since dropped to 945 crowns.

Consolidated figures in billions of crowns:

Q4/06 Average Median Q4 2005 Range Sales 42.27 41.90 35.68 38.12-47 Core profit (EBITDA) 16.08 15.81 11.75 15.34-17.96 Oper profit (EBIT) 10.32 10.12 6.20 8.09-12.41 Net profit * 7.28 7.07 6.86 6.42-8.22

FY 2006 Average Median 2005 Range Sales 153.57 154.07 125.08 143 -159.56 Core profit (EBITDA) 64.07 64.02 50.13 62 - 66.26 Oper profit (EBIT) 40.49 40.53 29.40 37.86- 42.35 Net profit 28.40 28.21 21.44 27.50- 29.34

The following equity houses took part in the poll: Atlantik, BH Securities, CA-IB, Citigroup, Deutsche Bank, Erste/Ceska Sporitelna, Goldman Sachs, ING, Komercni Banka, KBC Securities/Patria, Sal.Oppenheim, Wood and Company. ((Editing by Erica Billingham ; prague.newsroom@reuters.com; Reuters Messaging: jan.lopatka.reuters.com@reuters.net; +420-224 190 474)) ($1=21.49 Czech Crown)

Keywords: CEZ RESULTS/

[PRAGUE/Reuters/Finance.cz]