CEZ Heads for Best Three-Day Gain This Year on Disposal Plan
CEZ AS (CEZ) headed for its steepest three- day gain in almost six months as the biggest Czech utility moved closer to the sale of two power plants that would resolve a coal-supply dispute and help finance atomic reactors.
The stock climbed as much as 2.3 percent and traded up 0.9 percent to 744.5 koruna by 3:32 p.m. in Prague, the second-best performance in the 14-member PX (PX) equity index today. A close at that level would be CEZ’s highest since May 2 and mark the steepest three-day jump since Dec. 2.
CEZ may sell the Pocerady and Chvaletice coal-fired plants next year, the state-run company said today in a statement, after a legal row with Czech Coal Group over the price of brown coal supplied to the facilities. Prague-based CEZ aims to choose a supplier of two new reactors at its Temelin power station in 2013, Chief Executive Officer Daniel Benes said on May 10.
“The sale would be a logical outcome of a year-long row with the coal supplier,” Josef Nemy, an analyst at Komercni Banka AS in Prague, wrote in e-mailed comments. “CEZ is trying to reduce other investments as the planned Temelin expansion is a really large project. The company also has a long-term goal of reducing the share of coal plants in its generation portfolio.”
Czech Coal, which owns the Vrsany mine located 5 kilometers (3 miles) from the Pocerady plant, and EP Holding have expressed interest in buying the plants, CEZ said in the statement today.
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