Despite a decrease of electricity output (-8.1% yoy), Donbassenergo (DOEN: BUY) showed a 10% yoy increase of revenues, due to an increase in electricity tariffs. The increase in fuel efficiency, reduction of gas use and drop in social expenses 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
139.9 +10% 21.98 +10.22 16% 8.53 +11.86 6%
Alexander Paraschiy: The company’s 1H07 margins are higher than our 2007 forecast (EBITDA 8%, net margin 0.6%). We believe the full-year results will be higher than we previously forecasted.