PwC Confirms RosUkrEnergo's 2006 Earnings At USD785 mln.

Following their recent audit Of RosUkrEnergo (RUE), PricewaterhouseCoopers confirmed the company’s earnings of USD785 mln, a 4% increase from 2005. Vladimir Nesterenko: RUE’s revenues growth of 37% in 2006 (according to unaudited financials), mean that its net margin was nearly cut in half. As expected, political pressure and higher prices for Central Asian gas led to RUE’s profitability being squeezed last year. It is unclear whether net the income disclosed by PwC includes 50% of the JV Ukrgaz-Energ’s 2006 income. If it does, the figure is very close to our earlier estimate of RUE’s 2006 net income of USD 755 mln.