JSC TGC-1 net profit up by 4.9% for Q1 2014, according to Russian Accounting Standards

05.05.2014

JSC TGC-1 is reporting its financial statements for the first 3 months of 2014, which have been compiled in accordance with the Russian Accounting Standards.

More detailed information is provided below on the key figures that form the financial results for the 3 month period of 2014 and 2013. All figures listed in the table are stated in RUR million.

Financial results statement – key indicators

3 months 2014

3 months 2013

Revenue

21,036.7

21,886.2

Cost of sales

(17,421.7)

(17,984.8)

Gross profit

3,615.0

3,901.4

Other income

504.6

1,774.4

Other costs

(454.2)

(1,856.6)

EBITDA*

5,580.2

5,727.2

Change in deferred tax liabilities

486.4

(539.2)

Change in deferred tax assets

(504.1)

(175.0)

Net profit

2,702.6

2,575.4

* EBITDA = profit before taxation – interest receivables + interests payable – income earned from equity participation in other companies + depreciation.

The Company’s revenue for the first 3 months of 2014 amounted to RUR 21 billion 36.7 million, a decrease of 3.9% compared with the same period last year. The following had a restrictive impact on the Company’s revenue figures:

−          A reduced demand for electricity in the day-ahead market, resulting in a 16.7% drop in sales of electricity in this sector; 

−          A drop of 14.7% of capacity sold in Competitive Capacity Outtake; as a result, Competitive Capacity Outtake 2014 passed with less capacity taken off;

−          A 4.7% fall in the average selling price of capacity under capacity supply agreements – a logical consequence of the calculation procedure for this price;

−          A two-fold drop in electricity exports, due to unfavourable market conditions on the Nord Pool market.

Revenue from electricity sales, therefore, amounted to RUR 7 billion 822.2 million, a decrease of 10.5% compared to the same period in 2013. Proceeds from the sale of electricity on the day-ahead market fell by 7.9%, to RUR 6 billion 385.0 million. Following the tariffs growth in 2013 and an increase in supplies, income from regulated contracts grew by 31.7%, reaching RUR 1 billion 62.6 million in this reporting period. 

Revenue from capacity sales fell by 3.5% to RUR 3 billion 782.7 million. Income from the sale of capacity under capacity supply agreements, therefore, remained at the level of Q1 2013.

As a result of the rise in heat tariffs, revenue from heat sales was up by 1.9% in Q1 2014, reaching RUR 9 billion 246.5 million. Other sales totalled RUR 185.4 million.

Production costs fell by 3.1% to RUR 17 billion 421.7 million. The main factors to have an impact on the pattern of production costs were as follows: CHPP cutbacks in production; effective operation of the new units with regard to reducing the specific consumption of fuel and a series of programme initiatives to increase operational efficiency.

JSC TGC-1’s gross profit amounted to RUR 3 billion 615.0 million, a decrease of 7.3%. EBITDA was recorded at RUR 5 billion 580.2 million, 2.6% down on last year’s figure. Q1 2014 net profit increased by 4.9% to RUR 2 billion 702.6 million.