Luhanskteplovoz’s Revenue up 12% yoy in 2007

According to Ukrainian News, Luhanskteplovoz (LTPL: U/R) increased its sales by 12% yoy to UAH 560 mln (USD 111 mln) in 2007. The company’s chairman Viktor Bikadorov noted that in 2008 the company targets to triple its revenue, and by 2011 to reach an annual revenue of UAH 5 bln (USD 1 bln). Inna Perepelytsya: We believe that Luhansteplovoz’s long-term targets are only achievable if Transmashholding remains in control. We believe the market will only react to these plans after uncertainty regarding reprivatization is cleared up. In an interview earlier this week, Bikadorov said that Transmashholding would continue to fight for control of its stake in Luhanskteplovoz, because it was acquired legally (see our report of January 15). He said that Transmashholding has fulfilled all the conditions of the company’s privatization tender. He also stated that in any case, Luhanskteplovoz’s cooperation with Transmashholding would continue in 2008. Last week, Ukraine’s Supreme Court refused to hear an appeal that could have overturned lower court rulings that the March privatization of a 76% stake in Luhanskteplovoz should be returned to the state.