Zakhidenergo reports 10% EBITDA margin in 3Q10

Zakhidenergo (UX: ZAEN UK), an electricity generating company with 4.7 GW installed capacity, reported UAH 1,221 mln in revenue in 3Q10 (+15% y-o-y) and EBITDA of UAH 126.8 mln (margin of 10% vs. -3% in 3Q09), according to a company filing on Friday. Net income for the third quarter amounted to UAH 37 mln. Yegor Samusenko: We attribute the positive 3Q results to improved electricity pricing since May 2010 and expect similar results from Centrenergo (UX: CEEN UK) and Dniproenergo (UX: DNEN UK), which should be reported this week. For Zakhidenergo, we do not expect a market reaction to the news as the stock seems to be overpriced already on rumors of a buyout from DTEK.