DNSS Increases Net Income 6-Fold In 2006

In DniproSpetsStal’s (DNSS: BUY) press release to mass media the company announced that its net income increased by nearly six times in 2006 to USD 38 mln. The company has not yet released its net sales. DNSS is scheduled to hold its AGM on March 14, at which time the company’s shareholders will examine operating results and vote to pay dividends for 2004 and 2006. Eugene Cherviachenko: The jump in reported income is likely a direct result of solid corporate governance improvement at DniproSpetsStal. The reported net income is even 18% higher than our previous forecast USD 33 mln for FY2006. Apparently Interpipe group materialized its plans, to buy out the stake of Russian businessman Konstantin Grigorishyn and thereby consolidated 60% in the company. If it is true this would mean the end of a lingering corporate conflict that plagued DniproSpetsStal. At the upcoming AGM we expect to get final confirmation of the conflict settlement.