Generous tariff increases Donbasenergo’s 1Q14 profit 1.9x yoy

Generous tariff increases Donbasenergo’s 1Q14 profit 1.9x yoy



24 квітня 2014 года
Конкорд Капитал

Донбассэнерго (DOEN)


Power GenCo Donbasenergo (DOEN UK) has increased its net revenue 10% yoy to UAH 1.30 bln in 1Q14, the company reported on April 23. At the same time, its power supplies to the wholesale market have decreased 9% yoy to 2.05 TWh. The company’s EBITDA increased 82% yoy to UAH 239 mln, while its net profit jumped 87% yoy to UAH 197 mln.

Alexander Paraschiy: The only reason for Donbasenergo’s financials increase in 1Q14 was a granted additional markup to its power tariff. The company generated an extra UAH 234 mln from additional surcharges, or 18% of its total revenue in the quarter. In 1Q13, the total revenue from tariff markup was UAH 16 mln. The additional markup is usually approved by the sector regulator to cover reconstruction costs of GenCo’s power units, and the cost is passed on to all electricity consumers.

Net of proceeds from tariff markups; Donbasenergo generated UAH 1.07 bln revenue (-9% yoy) in 1Q14, while its quarterly EBITDA was UAH 4 mln (vs. UAH 114 mln in 1Q13) and net losses were UAH 38 mln (vs. net profit of UAH 89 mln a year before).

Despite retail power tariffs for all the groups of consumers in Ukraine being frozen since September 2013 (and so are wholesale power tariffs), we expect that bottom line of Donbasenergo will remain nearly flat yoy this year, mainly due to a much higher revenue from the additional surcharges. The total amount of revenue to be generated by Donbasenergo from additional surcharges (as stipulated by the power regulator) will be UAH 937 mln in 2014 – a significant increase from UAH 269 mln in 2013.

Источник: Конкорд Капитал

Аналитик: Александр Паращий
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