Kyivenergo Preliminary 2006 Results Reported
22 February 2008
Net income of electricity company Kyivenergo (KIEN: BUY) in 2006 came to USD 8.6 mln, which is 4.6 times higher than in 2005, according to Ukrainian News. Alexander Paraschiy: Kyivenergo’s financial results are much higher than we expected (USD 0.8 mln) and at the moment it is hard to say what allowed Kyivenergo to generate USD 14.4 mln income in the last quarter of 2006 (2.5 times yoy growth). In addition to a warm winter in 2006 that allowed the company to save on heat production costs and the city of Kyiv’s compensation for part of heat division losses, there must be other non-recurrent reasons for its high profitability. In any case, we support our BUY recommendation on the stock and our 2007 forecasts presented in our Jan. 24, 2007 report.
