Centrenergo EBITDA improves 20% yoy in 3Q15
27 October 2015
State-controlled power GenCo Centrenergo (CEEN UK) reported a 16% yoy decline in net revenue to UAH 4,671 mln in 9M15, according to its Oct. 26 filing. This result was mostly caused by a 41% yoy decline in its power output to 5.45 TWh, due to a low load at two of its three power plants burning anthracite, a deficit coal type for Ukraine since mid-2014. The company’s EBITDA plunged 11x yoy to UAH 34 mln and bottom line was negative at UAH 82 mln in 9M15.
The 9M15 result implies an encouraging performance in the third quarter, when Centrenergo’s revenue showed a 2% yoy decline in revenue (to UAH 1.82 bln), a 20% yoy increase in EBITDA (to UAH 225 mln) and a 31% yoy increase in bottom line (to UAH 187 mln).
Alexander Paraschiy: Centrenergo’s key success factor in 3Q15 is the decline in its coal costs, roughly by 15% from 1H15. This seems to be the result of state’s regulation of the market price of coal in Ukraine, which is the consequence of the government’s fight with DTEK’s monopoly on the coal market. In the next quarter, Centrenergo’s result is likely to become worse, given that it needs to import some anthracite for its power plants at a higher price than what the internal market “offers”. All in all, we do not expect the company will be able to finish this year in black.
