Prykarpatoblenergo (PREN) reported net revenue of USD 77.2 mln in 9M08 and net income of USD 8.7 mln: its net margin (11%) is the highest in the sector. Alexander Paraschiy: The key reason Prykarpatoblenergo became the most profitable Oblenergo is a significant reduction in power supply by the company, due to departure of its main client, LukOR in late 2007. The decrease in power supply put downward pressure on its reported revenue (the company’s revenue growth was 0.4% yoy for 9M08 vs. the sector aggregate of 28%), which did not effect its bottom line (profit grew 3.2x yoy), effectively raising its margin. For more details on this effect, see our Nov. 27, 2007 note on Prykarpatoblenergo.