Centrenergo Announces 1H05 Results

Centrenergo (CEEN: HOLD) posted USD 1.81 mln net income in 1H05, compared to USD 0.7 mln net losses in 1H04. The company reduced electricity generation by 6.5% yoy. Concorde Capital: New management of CEEN, which started its operation in March 2005, has significantly improved CEEN?s financial results in 2Q05 compared to the first quarter, when the company posted USD 1.2 mln net losses. However, CEEN?s generation has decreased in 1H05 by 6.5% yoy (mainly due to decrease in 1Q05 by 11.5% yoy), which is the worst result among the GenCos.  We are sceptical that they will be able to improve CEEN production volume and top line in 2H05, due to tough competition.