Khersonoblenergo (HOEN: HOLD) Announces Q105 Results

The regional electricity distribution company Khersonoblenergo posted USD 19.4 mn in revenues, and net losses of USD 0.27 mn in Q105. High electricity losses (23% of purchased electricity, compared to the allowed level of 19.5%), led to the poor results, as did high debt obligations. The company spent USD 0.37 mn in Q105 on past debts. Concorde Capital: HOEN is the worst performing Oblenergo among those privatized in 2001. The company has problems with its main creditor, the wholesale electricity market operator. HOEN owes USD 103 mn to the company, which is more than HOEN?s full-year 2004 revenue (USD 76 mn). Debt continues to threaten the company, as the new government canceled the energy sector restructuring agreement signed by the previous Cabinet.