Electricity

State Property Fund’s officials announced yesterday that the Fund might privatize one of the four state-owned, fossil-fuelled generating companies [CEEN UK, DNEN UK, DOEN UK and ZAEN UK] by the end of 2010. However, massive privatisation of electricity-sector companies is more likely in 2011, the SPF notes. Regarding the privatisation of 25% stakes in four power-distributing companies, the SPF may decide to break up the shares sold on the stock exchange into smaller blocks so that the market can absorb them.

The State Property Fund officials told on Friday that the fund is considering sale of the state owned 25% stakes of Odessaoblenergo [ODEN UK], Prykarpattyaoblenergo [PREN UK], Poltavaoblenergo [POON UK] and Sumyoblenergo [traded OTC] on the stock exchange. Last year the SPF failed to sell the stakes in four oblenergos through the auctions.

Ukraine’s electricity consumption grew 11.2% YoY in January-March 2010 to 40 TWh. Growth in electricity consumption was seen in most of the sectors of the economy, with metallurgy adding 27% YoY to electricity consumption, machinery +17% YoY, chemical and oil refining + 12%, heating +4%. Household electricity consumption grew by 10%. Households still hold the major share in aggregate electricity consumption with 28%, whereas share of metallurgy grew by 3 p.p. to 25%.

Odesaoblenergo (ODEN UZ) posted a UAH 25 thsd (USD 3 thsd) net income for 2009, which is even less that the modest UAH 5.6 mln (USd 1.1 mln) income recorded in 2008. At the same time, the Company’s net sales grew by 14% YoY in 2009 to UAH 2.2 bln (USD 0.28 bln).