Centrenergo, Zakhidenergo report 1Q09 results

Ukrainian power generation companies Centrenergo (CEEN) and Zakhidenergo (ZAEN) have reported their 1Q09 results. Centrenergo decreased net revenue by 8% yoy in 1Q09 to UAH 984 mln, lowered its EBITDA to negative UAH 37 mln (compared to positive UAH 104 mln in 1Q08), and reported net losses of UAH 64 mln (vs. net income of UAH 53 mln in 1Q08). Zakhidenergo increased net revenue by 17% yoy in 1Q09 to UAH 1267 mln, decreased EBITDA to negative UAH 29 mln (compared to positive UAH 694 mln in 1Q08), and reported net losses of UAH 81 mln (vs. net income of UAH 35 mln in 1Q08). Alexander Paraschiy: The key factor that spoiled the companies’ financials in 1Q09 was a decrease of power production (- 21% yoy for CEEN and -10% for ZAEN), and a lag between tariff increases and the companies’ fuel costs growth.