By Sean Carney 
 

PRAGUE--Czech-based electricity company CEZ AS (BAACEZ.PR) doesn't plan any exceptional financial charges or write downs this year and will calculate its dividend payment based on adjusted earnings to maximize the payout to shareholders.

"At the current time if there are no major changes of the regulatory [environment] we don't see any big reason for any significant charges. It's difficult to predict, but we don't plan any [such charges]," Chief Financial Officer Martin Novak said on Tuesday.

Charges on assets are non-cash and they don't have an impact on cash flow yet at the same time they have an impact on unadjusted profits. As such the company plans to calculate dividend payouts on adjusted profits going forward, Mr. Novak said.

The company posted unadjusted net profit of 2.8 billion Czech koruna ($114.1 million) in the three months ending Dec. 31, while adjusted fourth-quarter profit was CZK5.2 billion including CZK2.3 billion in goodwill.

Chief Executive Daniel Benes said it was too early to say whether the company would maintain its dividend policy of paying out 50% to 60% of net profit to shareholders as dividends, or if that payout ratio could be increased.

The company will propose a dividend payout sometime next month, he said.

Mr. Benes also declined to comment on the status of possible bids for majority stakes in utilities in Slovakia and Germany offered by Italy's Enel Spa (ENEL.MI) and Sweden's Vattenfall, respectively.

At 0946 GMT CEZ shares traded 0.8% higher at CZK634.85, outperforming the broader Prague market.

Write to Sean Carney at sean.carney@wsj.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires