Daily monitor

Electricity generation company, Donbasenergo [DOEN UZ], reported improved financials for 2Q08. Net sales went up 45% YoY, gross profit increased by 20% YoY improving gross profit margin from 12.4% to 15% YoY.

Zaporizhstal [ZPST UZ, Strong BUY] reported in an official press release some of the details on the two main aspects of its vast USD 1.7-2.0 bln modernization program.

In the July 24 issue, Kommersant-Ukraine featured a piece on a possible merger between the Evraz Group [EVR LI, N/R] and the Industrial Union of Donbas (IUD).

Alchevsk ISW [ALMK UZ, BUY] signed a contract for the rest of 2008 for deliveries of directly reduced iron (DRI) briquettes from Lebedinskiy GOK of the Russian Federation.

At the AGM on the July 22, 2008, Slavutych Brewery [SLAV UZ, BUY] corroborated financial results for 2007: net revenues USD 232.8 mln (+55.1% YoY), EBITDA USD 51.6 mln (+ 83% YoY), net income USD 19.3 mln (increased 4.4 times YoY).

Nikopol Ferroalloys [NFER UZ, N/R] reduced output 1% YoY to 541 thsd metric tonnes in 1H2008.

On July 22, 239.8 thsd mt of crude oil were sold at Resources Auction 119, which took place on the floor of the Ukrainian Interbank Currency Exchange.

The wholesale electricity price in Ukraine is expected to increase 41% YoY by the end of 2008, reaching USD 81 per MWh.

According to an announcement by Ukraine’s Fuel and Energy Ministry, Ukrainian electricity export prices will increase 119% during 2008 and 2009 from an average export price of USD 41 per MWh in 2007 to USD 90 per MWh in 2009.

In July, Kryukiv Railcar [KVBZ UZ, BUY] joinly purchased a finishing milling center with the mobile column of the Czech company TOS KURIM that will be used for processing details for passenger railcar and subway car trucks.