Zaporizhiaoblenergo (ZAON: SELL) To Pay USD 0.15 Mn In Dividends

ZAON’s AGM decided to transfer 40% of its 2004 net income for dividends. This amounts to a dividend of USD 0.0008 per share, or a 1.4% dividend yield. The dividends will be paid between August 1 and October 1, 2005. Concorde Capital:ZAON?s main shareholder is the state-owned National Energy Company of Ukraine (NC ECU) with a 60.25% share. The company demanded a 40% dividend payout, which is a normal policy for state-run companies this year. ZAON is the third largest energy distribution company in Ukraine. It serves one of the most industrialized regions, with high share of large electricity consumers. Thus, it has a high risk of losing its customers, if large plants decide to purchase electricity from the wholesale market directly, not from ZAON. Our SELL recommendation remains unchanged.