CEZ Distribution Bulgaria increased profit in Q1 2020

Electricity distributor CEZ Distribution Bulgaria, a subsidiary of Czech energy company CEZ, recorded non-consolidated net profit in the amount of 9.7 million euros in the first quarter of 2020, compared to 2.65 million euros recorded in the same period last year.The company’s operating revenues rose to 54.6 million euros in Q1 2020 from 52.5 million euros in 2019. Operating expenditures dropped to 43.8 million euros from last year’s 49.6 million euros. CEZ Distribution Bulgaria distributed a total of 13,12 TWh of electricity in the first quarter of the year. In February 2018, Czech energy company CEZ agreed to the sale of its Bulgarian assets, including CEZ Distribution Bulgaria, to local company Inercom for an undisclosed sum, but the media speculate that the amount is around 320 million euros. However, the Commission for Protection of Competition (CPC) prohibited the sale of CEZ’ Bulgarian assets to Inercom because this sale agreement would lead to the establishment of a dominant position, that would affect the competition on the market. In April 2019, CEZ terminated the sale agreement with Inercom and started negotiating the sale with the largest public holding company in Bulgaria – Eurohold. In June, CEZ agreed to sell its Bulgarian assets to Eurohold for a sum of 335 million euros. However, In October, the CPC once again prohibited the sale of CEZ’ Bulgarian assets.