Centrenergo reports strong 2Q12 financials

Centrenergo reports strong 2Q12 financials



25 липня 2012 года
Конкорд Капитал

Центрэнерго (CEEN), Донбассэнерго (DOEN)


Centrenergo (CEEN UK), the Ukrainian electricity generation company, increased net revenue 38% yoy to USD 542 mln in 1H12 on higher electricity output (+30% yoy) and an increase in its effective power tariff by 6% yoy. EBITDA increased 18% yoy (to USD 41 mln) and the bottom line was up 29% yoy (to USD 22 mln) in 1H12. The results for 2Q12 alone are even more spectacular: EBITDA reached USD 56 mln - up from negative USD 15 mln in 1Q12 and 62% higher yoy. The quarter’s net income reached USD 44 mln (vs. a USD 22 mln loss in 1Q12).

Alexander Paraschiy: The key driver for the recovery in Centrenergo’s P&L in 2Q was a cut in fuel costs caused by the reduction in the wholesale coal price benchmark from UAH 770/t in 1Q to UAH 700/t (USD 88/t) since April 2012, as well as an upward adjustment in its achieved power tariff. The resulting increase in the spark spread in 2Q12 allowed the company to double-cover its net loss posted a quarter ago. We expect Donbasenergo (DOEN UK) will report much stronger 2Q12 results as well, and we see 3Q12 as good for GenCos too: usually the regulator allows for higher profits in mid-year so GenCos can smoothly accumulate coal stockpiles and prepare for the winter season. The situation is very likely to change for the worse in 4Q12: power tariffs traditionally decrease in 4Q and there is a risk that coal prices will be adjusted upward later this year.

Источник: Конкорд Капитал

Аналитик: Александр Паращий
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