JSC TGC-1: 9M 2011 IFRS Results

06.12.2011

JSC TGC-1 releases its interim abbreviated consolidated Financial Statements for the 9 months period ended September 30, 2011 prepared in accordance with International Financial Reporting Standards (IFRS).

Consolidated Statement of Comprehensive Income figures (mn RUR)

9M 2010

9M 2011

Change,%

Revenue, including

36,849

43,708

19

electricity sales  

21,671

27,541

27

heat sales

14,738

15,789

7

Operating expenses

(33,679)

(37,915)

13

Operating profit

3,171

5,793

83

Profit before income tax

2,999

5,311

77

EBITDA*

5,619

9,216

64

Profit

2,461

2,996

22

* For business planning purposes EBITDA is calculated as “Operating profit + Depreciation of PP&E and intangible assets”.

In 9 months 2011 the consolidated revenue of JSC TGC-1 increased by 19% year-on-year and amounted to RUR 43,708 mn. The increase is associated with the following factors:

     

    • Increase of electricity output by 5%;
    • Growth of regulated and non-regulated electricity prices and an increase in tariffs for heat;
    • Commissioning of new efficient combined cycle units at Pervomayskaya CHP and Yuzhnaya CHP.

     

In 9 months 2011 operating expenses increased by 13% year-on-year to RUR 37,915 mn. In particular, variable costs amounted to 63% of the total costs increase, growing by 13% year-on-year. Fixed costs increased by 13% year-on-year.

Major cost changes are reasoned by the following:

·         Higher fuel expenses associated with a growth of electricity generation by the Company’s CHP, as well as increase in fuel prices;

·         Increased costs of repairs and maintenance caused by the following:

       —   Periodic service in the 3d quarter,
       —     Consolidation of the city district networks of SUE TEK, which were incorporated to the structure of OJSC "Heating network of St. Petersburg",

·         Rental expense reduction and increased employee benefits expenses after consolidation of the St. Petersburg city district networks by JSC "Heating network of St. Petersburg";

·         Other operating expenses decrease in 9 months 2011 by the subvention sum (RUR 328 mn), received by JSC “Murmanskaya CHP” in 2nd quarter of 2011.

Operating profit for 9 months 2011 increased by 83% year-on-year, up to RUR 5,793 mn, EBITDA  by 64%, up to RUR 9,215 mn.

According to the financial statements under IFRS for the 9 months ended September 30, 2011, profit increased by 22% and amounted to RUR 2,996 mn.

Full JSC “TGC-1” 9 months 2011 results under IFRS can be found on the corporate website in the “Reports” section.