Zakhidenergo Announces 1H05 Results.
25 July 2008
According to information from the CEO of Zahidenergo (ZAEN: BUY), the company posted USD 3.3 mln net income in 1H05, which is 6.9 times higher increase yoy. According to the CEO, the company increased electricity production in 1H05 by 6.3% yoy, and revenue by 6.8% yoy. Concorde Capital: ZAEN profitability is highly sensitive to gas prices, as 35% of the company?s electricity is produced by using gas. As the wholesale electricity price is less sensitive to gas tariffs in Ukraine, ZAEN profitability falls during periods of rapid gas price growth. As we do not expect significant changes in gas prices this year, we expect ZAEN?s profitability to improve this year. The lastest information from ZAEN supports our expectations.
