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IBI-Rating has affirmed credit ratings of «ODESAOBLENERGO» PrJSC and its series А bonds

23.09.2016
IBI-Rating informs on affirming of the long-term credit ratings of «ODESAOBLENERGO» PrJSC and its interest-bearing series А bonds at uaBBB- grade, with a «stable» outlook.

«ODESAOBLENERGO» PrJSC is engaged in the electricity transmission and supply by local grids to consumers of Odesa region. The Issuer has the necessary licenses with an unlimited validity period to carry out the above-mentioned activities. The Issuer is a natural monopoly in Odessa region in the transmission and supply of electricity at regulated tariffs, which ensures stable sales.

In the first half of 2016, the trend of reduction in the volume of productive electricity supplies to own consumers of «ODESAOBLENERGO» PrJSC continued. The volume of electricity transit by the Issuer’s grids also decreased, the share of the revenues generated by this type of activities in the general revenue structure remained insignificant. The increase in electricity tariffs resulted in growth of net income in the period under review, – i.e. net income for 6 months of 2016 increased by 32.6%, as compared to the similar period of the previous year, amounting to UAH 2 754.3 mln. Net profit of «ODESAOBLENERGO» PrJSC amounted to UAH 14.5 mln., versus UAH 81.5 mln. in the first half of 2015.

During January-June 2016, the Issuer’s indebtedness on debt obligations slightly increased as a result of the revaluation of the foreign currency denominated loans due to devaluation, while in the currency obligations, amounts of the outstanding loans remained unchanged, amounts of debt on the placed interest-bearing bonds decreased as a result of partial redemption. «ODESAOBLENERGO» PrJSC kept an acceptable level of the debt burden at the end of June 2016.

The Issuer remains susceptible to currency risk, caused by the existing foreign currency denominated loans under the conditions of hryvnia devaluation. The Issuer’s need in considerable amounts of capital investments in renewal of fixed assets remains, given the need for constant upgrading of fixed assets according to the legislation of Ukraine. The amount of financing under the investment program of «ODESAOBLENERGO» PrJSC during 6 months of 2016 amounted to UAH 174.6 mln. (VAT excluded). The main directions (accounting for 87.1% of the total amount of financing) were the construction, modernization and reconstruction of the electrical grids and equipment.

A positive impact on the credit ratings grade may have, as follows: improved financial results at simultaneous increase in performance indicators and increase in liquidity ratios, liberalization of the energy market of Ukraine. A negative impact on the credit ratings grade may have, as follows: default on debt obligations, a significant increase in the debt burden, substantial reduction in the level of consumer payments and deterioration of the political and overall economic situation in the country.

In order to conduct the analytical research the materials provided by «ODESAOBLENERGO» PrJSC have been used, including: annual financial statements for 2013-2015 and 6 months of 2016 , background information on the enterprise activities, parameters of the series A bonds issue, other necessary internal information, expectations of the Rating agency IBI Rating, as well as the information from the public sources, which the Rating agency considers credible.

Corporate department.


For additional information please contact:
Press office of IBI-Rating
(044) 362-90-84
press(at)ibi.com.ua