Zaporizhiaoblenergo raises profit 26% in 2012
22 February 2013
The nation’s third largest power GenCo Zaporizhiaoblenergo (ZAON UK) reported a 26% yoy increase in 2012 net income to UAH 28.4 mln. The company’s top line advanced 8% yoy to UAH 5.44 bln, while EBITDA fell 66% yoy to UAH 37.4 mln.
Alexander Paraschiy: The result clearly contrasts with the company’s 9M12 reporting in which it posted UAH 190 mln EBITDA and UAH 93 mln net income. However, it was predictable given the practice of profit killing widely employed by state-controlled electricity companies.
As we wrote before, the companies don’t report a high full-year bottom line in order to avoid cash outflow in the form of dividends (as its holding company typically practices a standard 30% payout policy). All in all, the financial result is slightly better than we initially expected.
The reported bottom line suggests the company should pay UAH 0.47/share in dividends in 2013, which implies a dividend yield of 3.5% (vs. our initial expectation of 3.0%).
