Centrenergo reports strong P&L in 9M16
26 October 2016
Net revenue at Ukraine’s state-controlled power GenCo Centrenergo (CEEN UK) rose 67% yoy to UAH 7.62 bln in 9M16, according to its Oct. 25 filing. The growth was fueled by both much stronger electricity output (+30% yoy to 7.1 TWh) and a stronger achieved electricity rate. That also benefited the company’s EBITDA, which surged 41x yoy to UAH 1.36 bln in 9M16. Its EBITDA margin was at a record-high level of 17.9%. The company’s net profit was UAH 1.02 bln, up from losses of UAH 0.08 bln a year before. The company’s net debt was negative at UAH 0.51 bln as of end-September.
Alexander Paraschiy: Centrenergo appeared to be the key winner of a new electricity pricing methodology that covers exceptional coal costs (calculated as international benchmark plus delivery costs from western Europe). The company’s 4Q16 results promise to be even stronger, as the electricity price paid in the first 20 days of October suggests (the price was 43% higher than the average for 3Q16). With such exceptional profitability parameters, Centrenergo is an attractive privatization target in 2016 and early 2017.
