OREANDA-NEWS. August 2, 2010. The Motor Sich, a major producer of aircraft engines in the CIS region, posted a net income of UAH 218.6mn in 2Q2010, the company disclosed in its quarterly report July 30. The net income grew 2.1% yoy and 6.3% on the qoq base. The company increased its net revenues by 21% yoy to UAH 1,014.3mn in 2Q2010, while the qoq growth constituted 5.0% over the same period. Furthermore, the quarterly EBITDA reached UAH 303.6mn in 2Q2010, which represents a 6.7% qoq gain.

At the same time, a recognized local news paper, reported on July 30, the company may lose the exclusive right to supply its D-436-148 engines for Russian AN-148 aircrafts as Russia might substitute them with SaM146 engines produced by PowerJet company.

Millennium Capital considers the news as positive for MSICH. The growth in the second half of the 2010 is attributed to profitable contracts that company has entered into with the Indian Air Force and Russia (Ansat helicopters). Millennium Capital sees some risks connected to the Russia’s intention to replace D-436-148 engines on its aircrafts. Motor Sich may potentially lose up to 5% of its annual net revenue in case the Russian plans are implemented. However, potential loss may be covered by orders from Asia and the Middle East.