Donbasenergo Announces 1H05 Results

Donbasenergo (DOEN: BUY) posted a net income of USD 6.9 mln in 1H05, compared to USD 0.05 mln in 1H04. The company increased its revenues by 5.4% yoy to USD 94.5 mln. The volume of electricity generation in 1H05 decreased by 1.8% yoy, mainly due to a halt in operations at the Slaviansk power plant, which is closed for repairs. Concorde Capital: The key driving force for the increase in net income was outlined in our July DOEN report. The company cleared its debt accounts, meaning that debt provisions no longer distort the company?s bottom line. In addition, the operation of a cheap energy unit in 1H05 reduced DOEN’s operating costs.