Kharkivoblenergo Announces 2005 Results.

Kharkivoblenergo (HAON: BUY) reported USD 195 mln net revenue (4% growth yoy) and USD 2.6 mln net income in 2005. In 2004, Kharkivoblenergo recorded net losses of USD 18.5 mln. The volume of HAON’s electricity sales remained constant in 2005. The company’s AGM decided to distribute 40% of HAON’s net income towards dividends (DPS USD 0.004, dividend yield 1.2%). Concorde Capital: The company efficiently reduced electricity losses in 2005, which led HAON to obtaining additional profit. We expect further improvement of the company’s electricity supply schedule to bring additional profit (due to the increasing difference between the actual level of electricity losses in grid and the level of losses which are compensated) in subsequent years.