Centrenergo to Pay USD 1.9 mln in Dividends

At their AGM on April 3, Centrenergo (CEEN: U/R) shareholders voted to direct USD 1.9 mln (15% of 2007 net income) into dividends. The ex-dividend date is May 1, 2008; dividends will be paid from May 1 to December 31, 2008. DPS is USD 0.0051, dividend yield 0.11%. Shareholders also approved the company’s financial results: net revenue of USD 678.5 mln (+29% yoy), EBITDA of USD 67.0 mln (down 4% yoy, margin of 9.9%) and net income of USD 12.6 mln (down 28% yoy, margin of 1.9%). Like at Zakhidenergo, the NC ECU replaced the company’s supervisory board with people loyal to the current NC ECU president. Alexander Paraschiy: Centrenergo showed the largest decrease in EBITDA and net income of traded GenCos in 2007 – mainly because the company stopped receiving surcharges for loan payback (USD 7.3 mln in 2006). Adjusting for the loan surcharge, the company raised its EBITDA margin by 6pp in 2007. We are currently revising our forecasts for the company, and we believe Centrenergo will significantly outperform the management’s forecasted net income of USD 9.5 mln this year.