Dniproenergo reports net income of UAH 42.6 mln in 1Q11

Dniproenergo (UX: DNEN UK), the largest thermal power generating company in Ukraine, reported UAH 2,018 mln in net revenue (43.4% y-o-y) and UAH 42.6 mln in net income for 1Q11 (vs. a loss of UAH 13 mln in 1Q10). Yegor Samusenko: Dniproenergo continues showing the highest growth in key financials in the sector, progressing from the least utilized GenCos to the most utilized (which we think the company will achieve in two years) as the company is the most efficient in the terms of fuel consumption. Though its fuel efficiency allows it to earn the highest margins in the sector, we believe its y-o-y improve in profitability (up by 2 pp) will be reflected in margins across the whole sector.