Centrenergo EBITDA, net profit doubles in 9M17
30 October 2017
Power generation company Centrenergo (CEEN UK) reported on Oct. 27 its 9M17 net revenue rose 7% yoy to UAH 8.14 bln. The growth was mostly fueled by increased achieved power price as the company’s electricity output fell 44% yoy to 3.94 TWh. The company’s EBITDA and net profit jumped 2.1x yoy to UAH 2.87 bln and UAH 2.09 bln, respectively.
In 3Q17, Centrenergo’s net revenue decreased 16% yoy and 27% qoq to UAH 2.11 bln, its EBITDA dropped 56% yoy and 87% qoq to UAH 0.20 bln and its bottom line fell 78% yoy and 94% qoq to UAH 75 mln.
Alexander Paraschiy: The worsening of Centrenergo’s financial performance after solid 1H17 results is what we expected. The weak 3Q17 financials are the result of lower average prices for electricity in the quarter as compared to 2Q17 and smaller power output on a year-over-year basis (-41%).
We expect fourth quarter results will be weak as well, still hoping that the company’s 2017 bottom line won’t fall much below levels shown in 9M17. We expect the company’s 2017 profit will be UAH 1.5-2.0 bln and therefore expect Centrenergo will be a generous dividend payer next year: it should pay UAH 2.0-2.5 in DPS next year, implying 18%-24% in dividend yield. We remain bullish on Centrenergo stock.
