Poltavaoblenergo’s sales up 28% yoy in 1H08

Poltavaoblenergo (POON: BUY) reported yesterday its 1H08 financial results: net revenues of USD 130.0 mln (+28% yoy); EBITDA of USD 18.7 mln (+11% yoy); net income of USD 8.0 mln (-2.0% yoy). The company’s EBITDA margin amounted 14.4% (16.4% in 1H07); net margin is 6.2% (8.1% in 1H07). Alexander Paraschiy: We relate decrease in Poltavaoblenergo’s margins tofast increase in the company’s reported sales, which consist of revenues from heat and power production (the company runs Kremenchuk CHPP), and from power supply. Yoy reduction in net income is explained by higher effective tax rate in 1H08: 35%, vs. 18% in 1H07. We forecast 34% increase in Poltavaoblenergo’s net revenue to USD 269 mln for FY08, EBITDA margin of 11.8% and net margin of 6.3%.