Energougol Reports Preliminary 2006 Results

PES Energougol (enug: BUY) posted USD 2.95 mln net income in 2006 (+75% yoy). The company supplied 1.17 TWh of electricity in 2006 (-3% yoy). Energougol is a part of SCM’s energy wing DTEK, which consolidated about 60% of the company’s shares. Energougol specializes in supplying electricity to coal mines in Donetsk region. Alexander Paraschiy: The company’s net income is 15% larger than we forecasted (refer to our Energougol initiating report as of Sep. 20, 2006); the company’s output parameters are close to our forecasts. We re-iterate our BUY recommendation for the stock.