Donbasenergo ups sales 1.2x, EBITDA 2.7x yoy in 9M12

Donbasenergo (DOEN UK), the smallest publicly listed Ukrainian electricity generator, reported 20% yoy growth in UAS-based revenue to UAH 3.4 bln in 9M12, on 6% growth in power output. EBITDA improved 2.7x yoy to UAH 411 mln, mainly on lower coal costs. This allowed the company to post 6x yoy growth in 9M12 profits to UAH 305 mln. The third quarter alone was much weaker: Donbasenergo was the only GenCo that cut its output (-3% qoq) and revenue (-7% qoq) in 3Q12. EBITDA was 40% smaller qoq and its bottom line worsened 45% qoq.

Alexander Paraschiy: The company’s worsened 3Q operating result is related to the temporary stoppage for repairs of the only power unit at the Slaviansk power station. A slight decline in profits on sticky tariffs, observed in 3Q12, is very likely to persist in the next quarter, which is traditionally unfavorable for Ukrainian power producers. A positive is that unlike Centrenergo (CEEN UK), Donbasenergo was able to manage its working capital and improve its cash position 1.4x YTD to UAH 67 mln.