RPT-EARNINGS POLL-Czech CEZ Q4 EBIT seen up 66 percent

 (Repeats to format table) 
    * 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]