Electricity

A representative of the State Property Fund of Ukraine informed that the state is preparing to sell blocking stakes in five regional electricity distributors: Chernigivoblenergo [CHEON UZ, BUY], Lvivoblenergo [LVON UZ, BUY], Poltaveoblenergo [POON UZ, BUY], Prykarpattyaoblenergo [PREN UZ, BUY], and Sumyoblenergo.

During its EGM held on March 13, shareholders of Ukragzbank [UGZB UZ, U/R] decided to ask the state to purchase a stake in the bank.

At its AGM last Friday, the southern Ukrainian electricity distribution company Krymenergo [KREN UZ, BUY] decided to pay out UAH 4.2 mln in dividends for the year 2008.

Ukrainian power stations decreased electricity production by 15.2% in Jan-Feb 2009 compared to Jan-Feb 2008, according to the Ministry of Fuel and Energy.

Dniprooblenergo [DNON UZ, BUY] held its first AGM in 2009, making it the first among Ukrainian electricity distributors to do so. The company decided to capitalize 100% of its 2008 net income. 5% will be allocated to the reserve fund and the other 95% will go to fund the development of grids. DNON’s net income in 2008 totalled UAH 84 mln.

The World Bank and Ukraine have started a project aimed at the improvement of electricity transmission networks, which is part of the integration of Ukrainian grids into the UCTE (Union for the Co-ordination of Electricity Transmission). The project terminates in 2013.

DTEK Holdings Limited has accumulated 28.8% of Donetskoblenergo’s shares [DOON UZ: SELL]. Earlier, DTEK reported that as of January 1, 2008 it had 19.5% of DOON’s shares. A majority stake in the company (65%) is controlled by the state-owned Energy Company of Ukraine.

Yesterday, National Electricity Regulatory Commission (NERC) increased the wholesale electricity tariff and dropped oblenergos’ 2009 investment programs, along with a respective cut in transmission and supply tariffs.

Centrenergo [CEEN UZ, U/R], Donbasenergo [DOEN UZ, U/R] and Zakhidenergo [ZAON UZ, U/R] have reported on their preliminary 2008 financials. The net revenues of CEEN and ZAEN grew 36% YoY and 34% YoY, respectively, to UAH 4.7 bln and UAH 4.8 bln. CEEN posted UAH 198 mln net loss whereas ZAEN ended 2008 with UAH 90mln net loss.

The electricity distribution company Dniprooblenergo [DNON UZ, U/R] has stated it recorded a UAH 83.7mln (USD 15.9 mln) net income in 2008, which is a 195% gain compared to the 2007 figure. The company’s net sales climbed 13.5% YoY to UAH 8,023.3 mln (USD 1.5 bln).