Five Oblenergos report 9M08 results

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Company                   Ticker  Net revenue        EBITDA             Net income
                             USD mln  yoy  USD mln   yoy  mgn  USD mln   yoy  mgn
——————- ——————-  ——————  ——————
Kharkivoblenergo    HAON    261.4  32%     33.2   85%  13%      9.6   48%   4%
Odesaoblenergo      ODEN    276.3  35%     24.0   73%   9%      0.6   n/m     0%
Sevastopoblenergo   SMEN    48.8  23%      8.9   55%   18%      4.2   52%   9%
Sumyoblenergo       SOEN     81.5  25%     14.5   83%  18%      7.3  246%   9%
Vinnitsyaoblenergo  VIEN     90.6  32%     13.8   240%  15%      5.0  433%   6%
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Alexander Paraschiy: Kharkivoblenergo’s relatively low net income increase is explained by a USD 10 mln rise in D&A expenses. Sevastopolenergo’s bottom line growth beat our expectations: we expected only a moderate increase in the company’s EBITDA and net income (refer to our July 2008 report). We also highlight Vinnytsyaoblenergo, which restructured its USD 54 mln in outstanding payables, eliminating its bankruptcy risk.