Chernihivoblenergo raises bottom line 4.3x in 9M08

Chernihivoblenergo’s (CHEON: BUY) net revenue for 9M08 amounted to USD 81 mln (+30% yoy), EBITDA was USD 12 mln (2.1x yoy growth) and net income came to USD 6 mln (4.3x yoy growth). Alexander Paraschiy: We see the Oblenergo sector as one of the most attractive in terms of profitability growth in 2008-2009. As we highlighted in our July 16, 2008 report, most Oblenergos are expected to show triple-digit bottom line growth in 2008 due to increases in their tariffs. The majority of the sector’s companies are not reliant on external financing (they finance their CapEx mainly from tariffs), thus their operating performance and investment plans are not affected by any trouble on the financial markets.