Donetsk Coke Sales Decline 13.4% yoy in 2007

Donetsk Coke (DKOK: N/R) posted sales of USD 27.9 mln (-13.4% yoy), net income of USD 0.7 mln (-41.7% yoy) in 2007. Andriy Gerus: Reported decline of financial results are in line with our expectations as we believe major company’s shareholder Metinvest redirects existing orders from Donetsk Coke to another Metinvest-related coke plant, Avdiyivka Coke (AVDK: BUY). In January 2008 Donetsk Coke halted two coke batteries. Therefore, only the two batteries in the Donetsk area are in operation. We think there is a high probability that Donetsk will be idled completely (see Ukrainian Coke Update, Nov 16, 2007; Avdiyivka Coke Update, Oct 18, 2007).