Kyivenergo posts UAH 672 mln net income in 1H09

Kyivenergo (KIEN) recorded net income of UAH 672.7 mln in 1H09, vs. a net loss of UAH 120.9 mln in 1H08, it said in a company filing yesterday. Kyivenergo attributed its net income figure to partial compensation by the city of Kyiv for maintaining tariff rates below cost. The company said it had to use the funds to repay debts to Gas Ukrainy and Energorynok. Kyivenergo also reported net revenues of UAH 3.3 mln in the half-year, up 10.7% yoy; and a gross loss of UAH 610.2 mln, slightly less than its gross loss of UAH 681.5 mln in 1H08. Yegor Samusenko: As we forecasted, the city of Kyiv finally compensated Kyivenergo for losses incurred due to low tariffs for heating. The amount was insufficient to cover all this year’s losses from heating supplies, and we anticipate further delays in compensation from Ukraine’s capital. Though, we believe these delays are already priced into the stock, and do not anticipate any significant price movements until there is certainty regarding a tariff increase for heating in Kyiv.