Donbasenergo reports 1Q09 results

Power generation company Donbasenergo (DOEN) increased its revenue by 43% yoy in 1Q09 to UAH 682 mln. The company’s EBITDA dropped to UAH 3.3 mln (compared to UAH 50.0 mln in 1Q08), and its net income decreased to UAH -26.3 mln (compared to UAH +2.3 mln in 1Q08). Alexander Paraschiy: Two things spoiled Donbasenergo’s bottom line in 1Q09 vs. 1Q08: (1) tariffs for electricity grew slower than coal costs; and (2) in 1Q08 Donbasenergo received UAH 20 mln in additional payments from the wholesale market to repay its loan from the EBRD, while in 1Q09 the company did not get any additional compensation. An additional payment to Donbasenergo amounting to about UAH 50 mln is stipulated in 2009 by a Cabinet of Minister’s decree, but the National Electricity Regulation Commission still has not scheduled this payment for DOEN.