Kyivenergo's Heating Supply Losses Amount to USD 97 mln in 2007
14 February 2008
According to electricity company Kyivenergo (KIEN: HOLD), the company’s losses from the generation and supply of heating amounted to USD 97.2 mln in 2007. Only 78% of this amount was compensated from the Kyiv city budget. Kyivenergo forecasts USD 128 mln in losses from its heating segment in 2008 (if heating tariffs are not be revised in Kyiv), while the city budget only foresees compensation of 44% of this amount. Alexander Paraschiy: The company’s losses from heating are 1.2% above our forecast. The compensation level from the city budget is 3% above our 2007 forecasts. We expect the same or higher compensation in 2008. Keeping our forecasts unchanged, we stick to our recommendation on the stock.
