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CEZ says Romanian assets sale continues, timeframe to depend on Covid-19 situation

CEZ

BUCHAREST (Romania), May 12 (SeeNews) - Czech energy group CEZ said on Tuesday that the sale process for its Romanian assets continues, as its timeframe will depend on the coronavirus situation in the country.

"During the state of emergency, the Romanian government suspended the transfer of majority stakes in the companies of the national energy system. The sales process and negotiations with individual bidders continue," CEZ said in a financial report posted on its website. "Final timetable including the deadline for binding bids will be set depending on the development of situation in the country."

CEZ also said its earnings before interest, tax, depreciation and amortisation (EBITDA) from sales in Romania stood at 0.2 billion Czech crowns ($7.8 million/ 7.3 million euro) in the first quarter of 2020, compared to a negative EBITDA of 0.1 billion Czech crowns in the first quarter of last year.

On April 10, Romania suspended the sale and purchase of majority stakes until the end of the state of emergency declared to limit the coronavirus spread. The state of emergency will be replaced by a state of nationwide alert on May 15, president Klaus Iohannis said earlier this month.

The suspension came halfway through the procedure for the sale of CEZ assets in Romania.

In mid-March, CEZ said it expects to sign the sale contract and settle the transaction in the second half of 2020.

The sale process was officially launched on September 9. The sale includes but is not limited to the distribution and sales companies and the Fantanele and Cogealac wind parks.

The first stage was concluded with the receipt of 19 indicative offers, CEZ said earlier.

CEZ is one of the leading integrated energy companies in Romania. Its assets include one of the largest distribution companies in the country with a customer portfolio of over 1.4 million.

In Romania, CEZ also owns Europe's largest on-shore wind park Fantanele-Cogealac with installed capacity of 600 MW, as well as the hydro electric system Resita consisting of four water reservoirs and four small hydro electric power stations with 22 MW capacity in total. CEZ Romania also sells electricity and gas to end customers.

(1 euro= 27.5353 Czech crowns)

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