(Adds details, quote, analyst, updates share price)
By Jan Korselt
PRAGUE, Nov 15 (Reuters) - Czech power firm CEZ <> posted a better-than-expected 61 percent jump in third-quarter net profit and raised its full-year outlook on Thursday on higher electricity prices and solid demand.
CEZ, whose market capitalisation of $42.3 billion makes it the largest Czech stock, said net profit rose to 8.41 billion crowns ($463.4 million) from 5.22 billion a year ago.
A Reuters poll of 10 analysts had forecast net profit at 7.8 billion crowns.
"Higher production, growth in wholesale prices, cost savings and results of the group abroad contributed to the (profit) growth," CEZ said.
Earnings before interest, tax, depreciation and amortisation jumped to 16.98 billion crowns from 13.97 billion, beating a forecast of 16.56 billion.
CEZ raised its 2007 net profit outlook to 41.4 billion crowns, including minority interests, from 35.1 billion, in part due to a 3 billion crown windfall from tax changes.
It increased the profit outlook on a "business as usual" basis, excluding the one-off items, to 36.9 billion crowns.
The firm raised its full-year EBITDA outlook to 73.4 billion, including one-offs, from 70.9 billion.
The improved EBITDA outlook included an one-off gain of 1.9 billion crowns from a recalculation of unbilled electricity, CEZ Chief Financial Officer Petr Voboril told a news conference.
CEZ shares jumped 2 percent at the opening bell on the results, but later slipped to 1,313, down 0.9 percent, as European markets fell.
"The structure of the guidance of core profit (EBITDA) might be accepted slightly negatively by the market because of the one-off item that boosts the overall outlook," said Robert Keller, an analyst for KBC's Czech brokerage Patria Finance.
"But even if we exclude the one-offs, still the financial issues are developing in a good direction. Overall, I think that the results are positive," Keller added.
The stock has dropped from all-time high of 1,421 seen on Nov. 7 but is still up 47 percent in the last 12 months.
CEZ said it expected full-year power consumption to rise year-on-year, making up for a drop in early 2007 caused by warm weather.
MOL TALKS GO AHEAD
CEZ Chief Executive Martin Roman said the company believed it could conclude talks on a strategic partnership with Hungary's oil group MOL <MOLB.BU> by the end of the year.
The two firms have agreed an alliance to build gas-fired power plants in Hungary and Slovakia. CEZ would take an up to 10 percent stake in MOL under the deal.
Roman told a news conference the exact size of the stake would depend on the extent of cooperation the two firms agree upon. He added construction of the power plants may start in 2009 if the deal goes through. (Reporting by Jan Korselt; writing by Jan Lopatka; Editing by Louise Ireland) ((jan.lopatka@reuters.com; +420 224 190 477; Reuters Messaging: jan.lopatka.reuters.com@reuters.net))
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Keywords: CEZ RESULTS/
