Zakarpatoblenergo And Zaporizhiaoblenergo Announce 2Q05 Results.
22 July 2008
Zakarpatoblenergo (ZOEN: SELL) posted a net income USD 0.24 mln in 2Q05 up from USD 0.02 mln in 2Q04. The company’s 2Q05 net revenue amounted to USD 11.8 mln. Zaporizhiaoblenergo’s (ZAON: SELL) net income amounted to USD 1.24 mln in 2Q05 down from USD 2.16 mln in 2Q04, the company?s net revenue was USD 83.9 mln. Concorde Capital: Zakarpatoblenergo and Zaporizhiaoblenergo showed relatively poor results in 2004. However, we can see improvements in ZOEN’s operating results: the company has reduced the level of excessive electricity losses in its grid from 8.9% of total electricity purchased in 2Q04 to 3.4% in 2Q05. This improvement allows the company to increase its bottom line significantly. Due to a large amount of strategic industrial consumers, ZAON is over-regulated. This reflects adversely on ZAON’s profitability compared to other distributors, and we can hardly expect significant improvement in its financial results this year.
