Kyivenergo gets UAH 1.3 bln from Kyiv, sets it aside for gas

Kyivenergo (KIEN UK), an integrated utility company controlled by DTEK, said it received UAH 1.33 bln from the city of Kyiv as a part of compensation for low heating tariffs in three tranches between July 31 and August 14. The company already allocated the full amount to decrease its payables to Naftogaz of Ukraine (NAFTO). According to Kyivenergo, Kyiv owes  UAH 2.1 bln in compensation for the tariff difference, and the company owes UAH 1.25 bln to Naftogaz for gas supplies as of August 14.

Alexander Paraschiy: The amount compensated so far is 60% of the total amount provisioned in Ukraine’s 2012 budget (UAH 2.23 bln) for compensation of Kyivenergo’s “tariff difference”. We expect the company will receive the remaining amount over the next couple of weeks and therefore will report a record high net income in 3Q12 (vs. losses of UAH 0.79 bln in 1H12). In the next year, the company will have to start another campaign to claim compensation again, unless heating tariffs in Kyiv are upgraded.