Mosenergo (899416)...ein Kauf? ( Seite 19)

Mosenergo reports strong 2Q2011 operating results

Rating: Buy
Price: 0,094 $
Target price: 0,15 $

25.07.11 12:39

In 1H2011, Mosenergo showed 7% y-o-y growth in electricity output, with the load factor appreciating by 4.4 ppt y-o-y to a considerable 66.2%. Strong 2Q2011 production results could boost the company’s financials.

On June 22, Mosenergo, the largest national thermal genco, disclosed 1H2011 production results, showing a strong appreciation on electricity and heat productions in 2Q2011. In the second quarter of the ongoing year, the company increased electricity output by 12% y-o-y, while heat output showed a more modest growth, appreciating by 7% y-o-y. Nevertheless, Mosenergo saw a 1.7% drop y-o-y in heat output, which was mainly caused by a rather weak numbers in 1Q2011. Due to the relatively good condition of generating equipment and its high fuel efficiency, Mosenergo features one of the highest load factors among the Russian gencos. In 1H2011, the company’s load factor increased by 4.4 ppt to 66.2%.

Source: company data, FINAM estimates
We are upbeat on the 1H2011 operating results from Mosenergo and note that in the ongoing year the generator has a chance to exceed the FY2010 production figures, which were higher than pre-crisis numbers. Mosenergo posted strong 4Q2010-1Q2011 IFRS numbers, showing an improvement in the EBITDA and NI levels, both in absolute terms and margins. We believe that the disclosed 2Q2011 operating results should back the company’s 2Q2011 financial figures.