Centrenergo doubles revenue yoy in 1Q16

Power generator Centrenergo (CEEN UK) reported its 1Q16 net revenue doubled to UAH 2,512 mln, according to its April 25 filing. The surge was the result of 82% yoy more electricity sold (to 2.43 TWh) and an 11% yoy advance in the electricity price (to UAH 1,025/MWh). Improved revenue enabled the company to boost its EBITDA to UAH 370 mln (from negative UAH 171 mn a year before) and its bottom line to UAH 270 mln (from negative UAH 230 mln a year before).

Its negative operating cash flow amounted to UAH 139 mln in 1Q16, as it spent UAH 537 mln to repay some “other” obligations. The result was better than negative operating cash flow of UAH 209 mln a year ago. The company’s cash balance decreased 36% YTD to UAH 330 mln, while its financial debt remained insignificant at UAH 144 mln.

Alexander Paraschiy: Centrenergo’s improved operations and financials are based solely on the imporved availability of anthracite coal in Ukraine, which powers two company power plants. The company’s results look especially spectacular compared to the negative EBITDA reported by DTEK’s GenCos, Dniproenergo and Zakhidenergo. All in all, Centrenergo remains well-prepared for privatization.