24 May 2008
Several Oblenergos Announce 1Q06 Results.
Recently released revenues and profitability figures for several electricity distribution companies:
Revenue USD mln Growth yoy Net margin 1Q05 1Q06
Cherkassyoblenergo CHON: N/R 26.53 60% 10% -6%
Kharkivoblenergo HAON: BUY 60.13 5% 0% 1%
Lvivoblenergo LVON: BUY 44.71 25% -1% 1%
Prikarpatoblenergo PREN: BUY 25.09 19% 2% 4%
Sevastopolenergo SMEN: HOLD 11.60 26% 13% 15%
Zakarpatoblenergo ZOEN: SELL 17.89 16% 0% 4%
Source: Energobiznes, company data, Concorde Capital
Concorde Capital: We see profitability improvement for all the companies except for CHON.CHON’s high revenue growth is due to the return of Azot Cherkasy, the largest energy consumer in the region, which used to buy electricity directly from the wholesale market. SMEN’s relatively high margins are due to the preferential tariff policy applied to the companies privatized in 2001 (refer to our Oblenergo report of December 15, 2005).