TGC-1 increased RAS net profit by 24% in Q1 2018

28.04.2018

TGC-1 published its 3 months 2018 financial statements under the Russian Accounting Standards (RAS).

Statement of financial performance (mln RUB)

3M 2017

3M 2018

Revenue

24,660.7

27,691.8

Costs

(19,920.7)

(22,285.3)

Gross profit

4,740.0

5,406.5

EBITDA*

7,087.9

7,692.8

Net profit

3,726.4

4,620.5

* EBITDA = profit before tax – interest receivable + interest payable – revenue from participation in other companies + depreciation & amortization.

The Company's revenue for the first quarter of 2018 amounted to RUB 27 billion 691.8 million, which is 12.3% higher than for the same period in 2017. In particular, the revenue growth was influenced by factors such as increasing demand for electricity in the Northwest region, growth of electricity output by hydro power stations of all the Company's branches due to high water content, as well as growth of heat supply due to prolonged heating period.

Total revenue from electricity sales increased by 17.1% to RUB 9 billion 97.7 million for Q1 2018. Revenue from capacity sales amounted to RUB 5 billion 425.9 million, representing growth of 6.1%. Revenue from heat sales rose by 12.3% to RUB 13 billion 123.6 million.

Production costs increased by 11.9% to RUB 22 billion 285.3 million. The main factor causing increase in production costs is growth of fuel expenses due to higher volumes of electricity output and heat supply.

TGC-1's gross profit amounted to RUB 5 billion 406.5 million (an increase of 14.1%).

EBITDA grew by 8.5% and reached RUB 7 billion 692.8 million.

Net profit for the reporting period amounted to RUB 4 billion 620.5 million, which is 24% higher than for the first quarter of last year.

To find out more about the financial performance of TGC-1 in the 3M 2018, please visit the Reports section at the corporate website.

About

TGC-1 is the leading producer of electricity and heat in the North-West region of Russia. It operates 53 electric generating stations in four regions of Russia: St. Petersburg, Republic of Karelia, Leningrad Oblast, and Murmansk Oblast.

TGC-1 installed electric capacity of the Company’s stations amounts to 6.95 GW and heating capacity of 13.65 thous. Gcal/hr. Major shareholders are Gazprom Energoholding LLC (51.79 %) and Fortum Power and Heat Oy (29.45 %). Total headcount of the Company, including subsidiaries, totals circa 7 thousand.