HN: Křetínský wants to raise EPH's operating profit to CZK 50bn in a yr

Prague, Jan 23 (CTK) - Daniel Kretinsky, the CEO and co-owner of energy and industrial holding Energeticky a prumyslovy holding (EPH), wants to raise the group's operating profit before write-offs from Kc8bn up to Kc50bn in a year, Kretinsky said for Wednesday's issue of daily Hospodarske noviny.

Acquisition of gas pipeline operator Net4Gas from the firm RWE is to be the biggest purchase. The price is estimated at up to Kc50bn.

"My target is that our operating profit before write-offs moves around EUR2bn. This is a level where we wanted to be and that is absolutely sufficient for us. The long-term plan correlates with the plan for twelve months, it may even be lower. A period of stabilisation will follow because we will already be large enough," Kretinsky said.

EPH plans to strengthen its role in electricity production. It has submitted a bid for brown coal power plant Chvaletice and black coal power plant Detmarovice of the CEZ group.

The gas industry is to be the second pillar of EPH's activities in the coming years. The holding is interested in the heating plants of Kladno and Zlin of Swiss company Alpiq whose price is estimated at Kc10bn to Kc14bn. EPH in January bought 49 percent in Slovak gas company Slovensky plynarensky priemysel (SPP) in the biggest acquisition in its history, HN adds.

EPH is the largest heat supplier and the second largest electricity supplier in the Czech Republic. It comprises over 30 companies involved in brown and black coal mining, heat and electricity production, heat distribution, trade in electricity and gas and other areas of the energy industry.

In brown coal mining, EPH ranks third in Germany where it owns company Mibrag whose production reached 19 million tonnes of coal last year.

EPH's shareholders are the PPF group with 44.44 percent, J&T with 37.04 percent and Daniel Kretinsky with 18.52 percent.