OREANDA-NEWS. February 02, 2011. Enakievo Steelworks has scheduled the AGM for Mar 23, 2011. In this announcement, the company disclosed preliminary financial results of ENMZ for FY10. Net loss for the year stands at UAH 778mn, implying UAH 10mn in profits in 4Q10. Surprisingly, its equity turned out to be positive at UAH 162mn vs. the negative UAH 210mn in 3Q2010.

Millennium Capital thinks that the news is POSITIVE for ENMZ. The UAH 10mn profit in 4Q10 (vs.MFKe loss of UAH 285mn) suggests milder transfer pricing, while positive equity in the BS implies a reduced risk of an additional share issue. Millennium Capital would not call for any implications for AZST and ALMK as Millennium Capital believes most of the improvement in the bottom line was driven by the company specific factors (the reduced scope of transfer pricing) rather than any improvement in the market fundamentals.