Centrenergo (CEEN: HOLD) Announces 1Q05 Results

Centrenergo posted revenues of USD 83.5 mn in 1Q05, a 5.3% growth yoy. The company?s net losses in 1Q05 amounted to USD 1.25 mn. In 1Q05, CEEN decreased its electricity output by 7% yoy. Concorde Capital: As we noted in our May ?Generation Companies? report, CEEN?s management said its 1Q05 results would be unsatisfactory, due to internal conflicts at the beginning of the year. The company decreased electricity production by 9-12% yoy at two out of three its power plants, due to low demand for thermal electricity and increasing competition in thermal sector. The internal conflicts have been resolved and the management remains optimistic about the company?s electricity output growth in 2005. Due to increased competition in the sector and the weak competitiveness of CEEN?s power plants, we do not share the management?s optimism.