Dniproenergo Announces Strong 1H07 Results.

Dniproenergo’s (DNEN: HOLD) 2% yoy increase of electricity output, led to a 27% yoy increase of revenues. An increase of fuel efficiency and reduction of gas use allowed the company to significantly increase its bottom line.

  Sales, USD mln                EBITDA, USD mln            Net Income, USD mln

  1H07     YoY                    1H07      YoY   margin      1H07    YoY      margin

  315.4   +27%                 50.72  +29.26    16%       21.01  +24.26    7%

Alexander Paraschiy: The company’s interim margins are higher than our forecast for the full year 2007. Notably, Dniproenergo’s margins are similar to those of Donbassenergo (DOEN: HOLD) – 16% EBITDA and a 6% net margin.