Dnirpoenergo Announces 9M05 Results.

Dniproenergo (DNEN: BUY) posted 9M05 revenue of USD 260 mln (10% growth yoy) and net losses of USD 12.3 mln (compared to USD 0.2 mln losses a year ago). The company decreased electricity production 3.9% yoy. Concorde Capital: The main factor causing the high net losses was a USD 10.9 mln income tax claim, which appeared due to a temporary difference in tax and financial accounting. DNEN slightly improved its physical output compared to 1H05, however, output is still following a negative trend. We expect about a 5% decrease in physical output for DNEN for the year, as competition in the generating sector will grow in 4Q05.