Centrenergo P&L improves in 3Q20

Net revenue at power
generation company Centrenergo improved 56% yoy to UAH 5.68 bln in 3Q20,
according to its abridged financials published on Oct. 16. Its EBITDA in the
quarter turned to positive UAH 0.40 bln (from negative UAH 0.29 bln a quarter
ago and negative UAH 0.26 bln a year ago) and its bottom line improved to
positive UAH 0.33 bln (from negative UAH 0.29 bln a quarter ago and negative
UAH 0.33 bln a year ago).

In 9M20,
Centrenergo’s revenue increased 27% yoy to UAH 14.93 bln, EBITDA was marginally
positive at UAH 0.04 bln (vs. negative UAH 1.44 bln a year before) and its
bottom line remained negative at UAH 0.16 bln (improvement from UAH 1.49 bln in
losses in 9M19).

Alexander
Paraschiy: The
reason for the company’s improvement in P&L in 3Q20 is not clear, taking
into account that Centrenergo’s power generation was about 40% lower yoy and
the average electricity price on the wholesale market was 19% weaker yoy
in the quarter.
Therefore, the only explanation for its improved top line is the company’s
heavy involvement in electricity trading operations, so we are looking forward
to see more detailed reports from the company. Thus far, it is impossible to
derive any conclusions about the sustainability of Centrenergo’s accounts from
the latest report.