Electricity

Kyivenergo [KIEN UZ] registered a UAH 130 mln net loss. KIEN's CFO noted that the Company's operating profit totaled UAH 464 mln, whereas the negative net income was mainly a result of fixed assets’ revaluation. The Company noted that the Kyiv City Administration owes KIEN compensation in the amount of UAH 1.5 bln for heat tariffs in 2008-2009.

The power generating companies Centrenergo [CEEN UZ] and Zakhidenergo [ZAEN UZ, HOLD] have reported net losses for 4Q09 and the full year of 2009. Notably, in 2009, CEEN posted a USD 32 mln net loss, negative USD 3 mln EBITDA, and USD 559 mln in net sales. In 4Q09, the Company carried a USD 4 mln net loss, but fortunately had a positive USD 4 mln EBITDA.

The VS Energy-owned Kirovogradoblenergo [KION] posted a UAH 34 mln net loss, compared to the Company’s 2008 situation, when it registered a meager UAH 1.2 in earnings. Yesterday, all other Ukrainian power distributers reported that they ended 2009 with net earnings. The VS Energy-owned Odesaoblenergo [ODEN] showed a tiny net income of UAH 0.03 mln. The state-owned Kharkivoblenergo [HAON] recorded UAH 21 mln in 2009 earnings, while those figures stood at UAH 13 mln for Khmelnytskoblenergo [HMON], UAH 22 mln for Vynnytsiaoblenergo [VIEN UZ], UAH 19 mln for Krymenergo [KREN UZ], and UAH 5 mln for Mykolayivoblenergo [MOEN UK].

According to the State Statistics Committee of Ukraine, in 2009, Ukraine’s coke imports contracted by 80% to reach 0.25 mln tonnes. At the same time, coke exports decreased by 8.5% to 0.92 mln tonnes.

Another two electricity distributing companies have reported their preliminary financial results for 2009. Namely, Chernivtsioblenergo [CHEN UZ] recorded a UAH 19.8 mln net income in 2009 (-36% YoY), decreasing its net margin by 3 p.p. to 5%. The Company’s net sales grew by 11.8% YoY to reach UAH 413 mln.

Two small electricity distributing companies have reported their preliminary financial results for 2009. Zakarpattyaoblenergo [ZOEN UZ] registered a UAH 1.0 mln net income in 2009 (-96% YoY), after posting a UAH 7.0 mln net loss in 4Q09. The Company's net sales grew by 7.6% YoY to reach UAH 523 mln.

Poltavaoblenergo [POON UZ, BUY] ended 2009 with a UAH 55.4 mln (USD 6.9 mln) net income, which is 2.8 times more than the 2008 result. Other results: EPS total UAH 0.25, net margin 3.1%, PER2009 12.0. The Company’s net sales in 2009 grew by 35% and totalled UAH 1758.5 mln (USD 219.8 mln).

On February 16, 2010, Ukrenergo will conduct the next monthly auction for accessing electricity export capacities in March 2010. The state transmission grid operator will be putting up for sale access to a 2765 MW capacity, including a 250 MW capacity integrated into UCTE.

The electricity generating company Centrenergo [CEEN UZ, U/R] and Ukraine’s largest power distribution company Dniprooblenergo [DNON UZ, BUY] have disclosed their 2009 financial results. CEEN recorded a USD 31 mln (UAH 244) net loss in 2009 on the whole and a USD 4 mln net loss in 4Q09. DNON reported a USD 10 mln (UAH 80 mln) net profit for 2009.

In January 2010, electricity generating companies owned by Energy Company of Ukraine (ECU) boosted their aggregate power output by 15% MoM to 7.1 TWh, or by 14.5% compared to January 2009. Notably, ECU’s fossil-fuelled power generating companies, including Centrenergo [CEEN UZ], Dniproenergo [DNEN UZ], Donbasenergo [DOEN UZ] and Zakhidenergo [ZAEN UZ], saw their electricity output increase by 17.4% YoY in January 2010, whereas the ECU’s non-public combined heating and power plants saw electricity output drop by 25%.