Ukrzaliznytsya Leaves Luganskteplovoz Hanging.

Luganskteplovoz’s (LTPL) net revenues decreased by 3.4% yoy to USD 77.5. EBITDA fell by 26% to USD 4.9 mln. The company’s effective tax rate of 105% led to net losses of USD 0.09 mln in 2005, as opposed to net income of USD 0.04 mln in 2004. The government has not adopted a financial plan for Ukrzaliznytsya in 2006 – Luganskteplovoz’s main customer.  The company’s lack of defined orders in April has put Luganskteplovoz on a 3-day working week, which is expected to return to normal in June, when LTPL’s management expects Ukrzaliznytsya’s financial plan to be made official. This delay has put ~43% of Luganskteplovoz’s initially planned orders from Ukrzaliznytsya in 2006 on hold. This year LTPL management plans to increase net revenues by 22% to USD 94.3 mln, and post net income of USD 0.21 mln. Look for Olha Pankiv’s notebook on LTPL’s AGM later today.