Centrenergo, Dniproenergo & Zakhidenergo Announce 1Q06 Results

Centrenergo, Dniproenergo & Zakhidenergo Announce 1Q06 Results.

 Summary Of The Thermal Generation Companies’ Financial Results:

                         Revenue USD mln     
   Growth yoy   EBITDA margin   Net margin  1Q05      1Q06            1Q05         1Q06

Centrenergo    CEEN       144.5  71%       12.0%     16.6%            -1.5%          6.4%

Dniproenergo  DNEN      140.6  49%       14.1%      5.3%               4.0%         -1.8%

Zakhidnergo    ZAEN     167.4  50%        5.4%      10.8%                0.4%        5.0%

 Source: company data, Concorde Capital calculations

Concorde Capital: The significant growth of GenCo revenue in 1Q06 is partially explained by output increases, but the largest percentage of sales growth (60% of CEEN’s and 71% of DNEN’s and 74% of ZAEN’s) is due to electricity tariff upgrade. Currently we are revising our target prices and recommendations for these stocks.