CEZ CEO: Dual Listing In Poland On Hold

Czech 67% state-owned utility CEZ AS (BAACEZ.PR) is halting its planned dual listing on the Warsaw Stock Exchange, Chief Executive Martin Roman told reporters Thursday in Prague."We are for now putting on hold the planned dual listing in Poland due to market volatility caused by carbon credit trading," Roman said.

The prices of carbon credits halved earlier this month as results of a European Commission audit showed that states have issued too many permits. The permits effectively make the right to pollute a tradable commodity - giving companies the ability to buy and sell permission to emit extra carbon dioxide. Prices on the credits have since recovered but the market remains volatile.

CEZ, which has a surplus of these credits, has seen this asset drop in value and stands to lose from a carbon selloff.

While the dual listing is officially on hold, CEZ still expects to complete the planned dual listing as soon as the carbon credit market volatily subsides.

"We still believe that the market should stabilize in late autumn or early winter of this year," Roman said.

He added that the nervousness on the carbon credit market should wane when the European Commission decides later this year on national carbon credit allocations for the second phase of the national allocation plan, which will be enacted in 2008.

After acquiring two power companies in Poland in late 2005, the company was to launch a dual listing in Warsaw prior to further acquisitions -a move analysts saw as a public relations effort.

They also said the dual listing was an attempt to further CEZ's operations in Poland and to access Poland's carbon credit surplus.

The intended dual listing should be have been completed by June this year.

CEZ is listed on the Prague Stock Exchange.

Company Web site: http://www.cez.cz
Source: -By Sean Carney and Leos Rousek,
Dow Jones Newswires