Prykarpatoblenergo (PREN: HOLD) & Odessaoblenergo (ODEN: SELL) Post Q105 Results

PREN finished Q1 with an income of USD 0.14 mn, and revenues of USD 25 mn. ODEN finished Q1 with net losses of USD 5.4 mn. Its Q1 revenue amounts to USD 42.6 mn. According to management estimates, ODEN lost about USD 15 mn in Q1, due to unauthorized electricity consumption. Concorde Capital PREN, despite internal shareholder conflicts, remains one of the best performing regional utilities. ODEN, which supplies the largest Ukrainian region by area, suffers from the highest level of unauthorized electricity consumption. The company is permitted to lose an average of 16.3% of purchased electricity, however, losses in Q105 totaled 26.2%. The Problem of high losses makes ODEN the worst performing utility in Ukraine.