Four GenCos announce preliminary 2008 results

The four Ukrainian power generation companies announced preliminary 2008 financial results: as we expected, the EBITDA of all GenCos except Donbasenergo (DOEN) fell. DOEN’s EBITDA grew mainly due to an increase in subsidies via the special surcharge to electricity tariffs by UAH 44 mln (USD 8.5 mln). Zakhidenergo (ZAEN) and Dniproenergo (DNEN) were the biggest disappointments: their EBITDAs under-performed our forecasts by about 20%, mainly due to higher than we expected fuel costs and lower tariffs in 4Q08. Centrenergo’s (CEEN) EBITDA was close to our estimates.

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                        Net revenue         EBITDA         Net income
                                 $ mln  yoy   $ mln   yoy  mgn  $ mln   yoy  mgn
——————  ———–   —————-  —————-
Centrenergo   CEEN      898.6  36%    45.7  -30%   5%  -38.0   n/m  -4%
Dniproenergo  DNEN     899.3  22%    51.6  -33%   6%   -3.1   n/m   0%
Donbasenergo  DOEN   424.4  50%    45.2   41%  11%    2.9  -43%   1%
Zakhidenergo  ZAEN     932.4  34%    25.0  -44%   3%   17.3   80%   2%
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