Donbasenergo reports 3Q10 financials

Yesterday Donbasenergo (UX: DOEN UK), an electricity generating company with 2, 7 MWh installed, reported its 3Q10 financials: its revenue totaled to USD 100 mln (up 29% y-o-y), EBITDA improved to USD 4.8 mln (margin of 5%, up 1 pp y-o-y) and net losses amounted to USD 0.5 mln in 3Q10. Yegor Samusenko: We view these results as negative since Donbasenergo reports the lowest margin among its local peers. We expect 4Q financials being improved to double-digit EBITDA margin (Donbasenergo`s power plant at Slavyanska TPP reports operating profit only in high-load season). However, we don’t anticipate stable earnings until the change of management. We expect the company to be privatized in late 2011-2012.