Dniprospetsstal forecasts sales of USD 800 mln, EBITDA of USD 150 mln in 2008
6 June 2008
Dniprospetsstal (DNSS: HOLD) expects an 8.1% yoy increase in sales to USD 800 mln in 2008, CEO Daniel Valk said at an investment conference in Kyiv yesterday. Planned EBITDA is over USD 150 mln, 40% higher than in 2007. Valk said that Dniprospetsstal is considering attracting investments of USD 200 mln for modernization in 2009-2012. According to Valk, the company is in the process of opening new representative offices abroad. Eugene Cherviachenko: In May, Ukrainian businessman Viktor Pinchuk sold his stake in Dniprospetsstal to an undisclosed company (Russian VS Energy, according to daily Kommersant-Ukraine) that, in our view, calls into question its modernization and IPO plans. The announced financial targets are close to our projections as of October 2007: revenues of USD 745.5 mln and EBITDA of USD 137.9 mln. We stick to our forecasts and HOLD recommendation on the stock.
