Zakhidenergo reports positive EBITDA, one-off-driven profit in 1H12

DTEK Zakhidenergo (ZAEN UK) reported a 32% yoy increase in net revenue to USD 596 mln in 1H12, caused mainly by 21% growth in power output.  IFRS-based EBITDA amounted to just USD 1.4 mln (vs. USD 45.1 mln for the UAS-based number in 1H11). A USD 34 mln one-off financial income (a result of revaluation of the company’s payables) allowed it to report positive USD 14.8 mln net income for 1H12.

Alexander Paraschiy: The result is broadly in line with our expectations: slightly positive EBITDA and negative bottom line (if adjusted for the one-off item) for 1H12. We expect the company will again improve its bottom line in 3Q12 on a higher achieved power tariff and additional surcharges that have been granted to the company for the reconstruction of its power units. Though, unlike for its state-controlled peers, the company will not undergo a significant turnaround as its coal costs (effectively determined by parent DTEK) are remaining higher than the market.