Dniproenergo (DNEN) Announces 2004 Results

Ukraine’s largest thermal power generation company, Dniproenergo, posted a 2004 revenue of USD 328 mn (a 2.7% decrease yoy). The company showed net losses of USD 5.2 mn on net revenues of USD 72.3 mn in 2003. DNEN sold 12 TWh of electricity to the wholesale market (a 15.6% decrease yoy) and was paid for 99.3% of electricity sold. Concorde Capital: While the top-line was more or less what we expected at USD 334 mn, losses were significantly higher than our estimates of USD 2 mn (please see our January Strategy report). We attribute the losses to DNEN’s debt problems: The company’s accounts payable decreased by USD 27 mn in 2004, while it?s A/R increased by USD 3.9 mn.