DTEK pledges to fulfill Dniproenergo investment commitments

In a meeting with analysts yesterday, a representative of DTEK said they would begin fulfilling commitments made to invest UAH 202 mln (USD 42 mln) annually into Dniproenergo (DNEN: BUY) over the next five years, as DTEK pledged to do in an agreement with the state on September 13, 2007. The announcement is in response to Dniproenergo’s registrar, Prominvestbank’s move to, with the approval of the Ukrainian State Securities and Exchange Commission, issue a certificate of shares, which legally backs up DTEK’s stake in the company (confirming the registered number of Dniproenergo shares at 5.9 mln, after DTEK bought ~34% of the company through an additional share issue. Thus, DTEK owns ~45% of DNEN shares). Dniproenergo’s Acting CEO and Financial Director Sergiy Bedin, also present at the meeting, said that the company would receive coal from DTEK mines at prices below those offered by state company Coal of Ukraine. He said the company is targeting 2008 net income of UAH 22 mln (USD 4.5 mln), but that it could outperform those (we stick with our more optimistic forecasts). Management said they will be ready to announce a mid-term development strategy for Dniproenergo in September.