A Word of the ŠKODA JS a.s.’ Chairman of the Board of Directors and General Manager Mr. Miroslav Fiala on the Results of the 2010 Year
Date: 25. 4. 2011
Comments of financial results
Ladies and Gentlemen,
Allow me to state at the very beginning that 2010 was a successful year for ŠKODA JS a.s. We generated audited sale revenues based on the IFRS methodology in the amount of CZK 4.6 billion (17% more than in 2009) and a profit before tax (PBT) of CZK 365 million. Exports account for 73% of these sale revenues.
These results were achieved from three fundamental business activities of ŠKODA JS a.s.: nuclear power engineering - 54% of the revenues (supply of turnkey systems), service activities - 13% of the revenues (services for operated nuclear power plants) and the manufacture of nuclear equipment - 33% of the revenues (for nuclear power plants and spent nuclear fuel storage).
The generated financial results mean that the 2010 plan, laid out by the shareholder, has been met; in addition, they influence positively our company's stability in all areas. Right now I have an opportunity to thank all of our company's employees for their top-quality, responsible work that made these achievements possible.
ŠKODA JS a.s. operates exclusively on the nuclear market. Our customers include primarily big power generating companies in the Czech Republic and abroad as well as major global suppliers in the field of nuclear power. During the year we won and signed new contracts worth over CZK 1.5 billion, especially involving the manufacture of nuclear equipment and services for nuclear power plants.
Implementation of Key Projects in 2010
In the field of nuclear power plant engineering, we successfully perform all activities and supplies relating to the completion of Units 3 and 4 of Mochovce NPP for our customer Slovenské elektrárne, a.s. The preparation of detailed design documentation was launched and assembly work initiated. The reactor pressure vessel was successfully mounted in the concrete cavity in the reactor building of Unit 3.
Likewise, supplies for stage 2 of the complete refurbishment of the control system in Dukovany NPP (customer: ČEZ, a.s.) are on schedule also thanks to successful cooperation with the plant's personnel. All operations on all four units are performed during planned outages, i.e. production of electricity in the course of the year is not impaired.
Engineering's strategic goal is to build up a major share of ŠKODA JS a.s. in the planned completion of Units 3 and 4 of Temelín NPP. In 2009, a Czech-Russian consortium was established, involving ŠKODA JS a.s., "JSC Atomstroyexport" and "JSC OKB GIDROPRESS", where ŠKODA JS a.s. acts as the leader. The consortium enrolled in a tender announced by ČEZ, a.s. and passed the qualification stage in the spring of 2010. The expected commencement of work on a specific bid in 2010 has been shifted by the customer to the following year. As a turnkey project, the consortium will offer the supply of two nuclear units with a unit output of 1,200 MW, with an advanced VVER reactor (commercial name MIR.1200, i.e. Modernized International Reactor). We believe that the orientation of all three consortium members on supplying VVER-type projects to third countries is very important for the future.
In the field of services for nuclear power plants, the company achieved very good results thanks to activities performed in the Czech operating Dukovany and Temelín power plants. Our goal is to continue improving all service activities, provided as turnkey projects for our customer ČEZ, a.s. The strategic goal in this area is to extend the supply of complex service packages to include other VVER nuclear power plants operated abroad.
As regards the manufacture of nuclear equipment, the highly challenging manufacture of a complete assembly of internal parts for an EPR European reactor, designed for a new unit in Olkiluoto NPP, Finland, was successfully finished. Winning a contract for the supply of hermetic cable penetrations for the completion of Units 3 and 4 of Mochovce NPP was also a great achievement. On the same note, other contracts were also performed and delivered as planned, including equipment for VVER nuclear power plants and equipment for spent nuclear fuel storage.
As far as its future strategy is concerned, ŠKODA JS a.s. will particularly focus on further manufacture of equipment for spent nuclear fuel storage and on components for VVER and EPR nuclear facilities, where the fundamental objective is to renew manufacture of complete VVER nuclear reactors with outputs of 1,000 MW and more.
At the end, I would like to thank our shareholder for its efficient support and all of our business and banking partners for their substantial assistance needed for the successful financial performance of ŠKODA JS a.s. in 2010. I believe we will be equally successful in 2011.
Miroslav Fiala
Chairman of the Board of Directors
and General Director
ŠKODA JS a.s. – is one of the leading engineering and production companies with worldwide experience in construction and service of nuclear power plants. Škoda was established in 1859, and the origins of its activities in nuclear power industry fall in 1956. Throughout the period of its existence, the company has supplied engineering, equipment and service for nuclear power plants, research reactors and spent fuel storage facilities in Central and Eastern Europe, Scandinavia, France, Germany, USA and the Far East. Up to the present day, ŠKODA JS has produced and supplied 21 complete PWR nuclear reactors of the VVER 440 type and three reactors of the VVER 1000 type.
OMZ Group - is one of the leading heavy industry companies specializing in engineering, production, sales and service support of equipment for nuclear, oil and gas, mining industries, as well as special steel production and industrial services. OMZ Group’s facilities are located in Russia and Czech Republic. The Group is controlled by OAO Gazprombank