Donbasenergo’s earnings return to black in 4Q10

Donbasenergo (UX: DOEN UK) reported its 4Q10 results on Friday, posting revenue of UAH 862 mln, down 4% y-o-y, and net income of UAH 51 mln. Yegor Samusenko: Notably, Donbasenergo’s bottom line crossed back into the black after three consecutive quarters of losses. The fourth quarter is seasonally good for the company; its largest power unit traditionally works at full load in 4Q, while in other quarters it works at half-load and consumes more fuel per kW generated generating losses. We expect Donbasenergo to be the only GenCo to report a positive bottom line in 4Q10 and anticipate a positive market reaction.