CEZ shares plunge in stock market

CEZ claims in its report for 2011 that the Albanian Energy Regulation Entity decision, which increased the purchase price for the Albanian Energy Corporation, will cause them a loss of 515 million USD during 2012 and 2014. According to Bloomberg, the CEZ quotes fell with 711 points in 5 days.

CEZ entered the Albanian market in 2009, when they bought the former state owned power distribution enterprise for 60 million EUR, or 9 times less than the losses that they claim to have in the next three years.

This Thursday the company published the financial balance for the first three months of the year. According to CEZ, the net profit fell with 14% during the January-March period, compared to one year ago, and the main cause, according to them, are the losses in Albania.

The prestigious news company Reuters says that the Albanian losses are the worst illustration of troubles in CEZ’s former expansion strategy in central and south-eastern Europe. The company has threatened to activate a 60 million euro World Bank guarantee related to the privatization deal if there is no agreement, after a long time of disagreements with the ERE and the Albanian government.

CEZ says that they are holding some meetings in Albania for changing the billing method, which was presented on January 2012, a matter that they are even following penally. The Company says that they are prepared to use all possibilities, even sending the case at the International Court, if the negotiations will bring no progress.

The CEZ problems in Albania brought the Czech Prime Minister in Tirana, Peter Necash, who met the Albanian Prime Minister, Sali Berisha. Their conversation focused exactly on CEZ and the Albanian authorities, and the company hopes to have a solution through negotiations.

Top Channel