Daily monitor

DTEK, the major shareholder of electricity generation company Dniproenergo [DNEN UZ] will invest USD 41 mln annually for reconstruction and modernization of power blocks at Dniproenergo during 2008-2012.

Electricity generation company, Dniproenergo [DNEN UZ], plans to put into operation 300 MW of installed capacities of #10 block at Kryvyy Rig TPP by the end of November 2008.

Electricity export from Ukraine decreased overall during 7M08 by 26.5% YoY. Exports to Hungary which account for the larger share of Ukrainian electricity exports decreased by 10% YoY or by 187 mln kWh to 1,670 mln kWh.

Today Slavutych [SLAV UZ, BUY] held a conference, where the IFRS financial results for 1H2008 were released: net revenues increased by 40% to USD 223 mln, EBITDA rose by 60% to USD 22 mln, and net income improved to a positive USD 2 mln ( vs. a negative USD 2 mln in 1H2007).

The Holding Company (HC) “Luganskteplovoz”, a Ukrainian monopolist manufacturer of mainline freight locomotives increased production in January-July more than four-fold over the same period in 2007 – rising to USD 123 mln.

The new registrar of electricity generation company Dniproenergo [DNEN UZ] – Prominvestbank – has officially restored the register of shareholders of Dniproenergo, now allowing the company to hold an official AGM. This allows Dniproenergo to resume corporate governance and during the next EGM approve financial results for 2007 and approve development strategy for 2008.

The State Statistics Committee of Ukraine released figures on real industrial output growth in July 2008. Real output in July 2008 grew 1.9% MoM (vs. 2.5% decline in June 2008) and grew 5.1% YoY (vs. 5.2% in June 2008).

The merchandise balance deficit in Ukraine for 1H08 is USD 9.8 bln; USD 1 bln higher than in January-May and 2.3 times higher than in the same period in 2007. Merchandise exports grew 40.7% in 1H08 YoY, while merchandise imports grew 60%.

The Automobile Plant "Bogdan" [LUAZ, BUY], a member of the Bogdan Corporation, increased its production of passenger cars by 80.2% YoY in the period January-July 2008 - up to 50.4 thsd units.

Prydniprovsk Dairy [KPRD, BUY], a Ukrainian independent dairy producer, has been submitted for listing on the PFTS Ukrainian exchange on August 4, 2008. The company has 7 mln shares outstanding with a par value of USD 0.52.