Six Oblenergos release 9M08 financial results

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Company                        Ticker  Net revenue        EBITDA             Net income
                                       USD mln  yoy  USD mln   yoy  mgn  USD mln   yoy  mgn
————————————  ——————  ——————
Cherkasyoblenergo CHON     94.1    34%     14.7   44%  16%      8.2   54%     9%
Dniprooblenergo   DNON      1261.4  20%     47.6  114%   4%     19.9  403%   2%
Ternopiloblenergo TOEN       49.0     33%      5.5   115%  11%     -1.6   neg    -3%
Volynoblenergo    VOEN       55.0     26%      7.2   136%  13%      0.3  -50%    1%
Zhytomyroblenergo ZHEN     99.1    32%     12.7   109%  13%      2.1   n/m    2%
Zakarpatoblenergo ZOEN      69.1    24%      8.5   196%  12%      1.6  199%    2%
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Alexander Paraschiy: All electricity distribution companies showed double to triple-digit increases in EBITDA yoy. The drop in the net income of Ternopiloblenergo and Volynoblenergo is a one-off event caused by a more than 3x increase in depreciation expenses on their P&L. We also highlight news from the balance sheets of Volynoblenergo and Zakarpatoblenergo: both companies restructured debt to Energorynok of USD 8 mln and USD 56 mln, respectively, mitigating their bankruptcy risk. This is in line with our expectations that Oblenergos with relatively small amounts of overdue payables would restructure them by the end of 2008 (refer to our Oblenergo update of July 16).