TGC-1 releases 9M 2010 IFRS results

01.12.2010

 

TGC-1 releases its unaudited consolidated report under IFRS for the period ended September 30, 2010.

In Jan-Sep 2010, consolidated revenue increased by 35% - to RUR 36,849 mn. The increase is associated with a number of factors:

  • increase of electricity sales (+62%) as a result of expansion of the unregulated market as of January 1, 2010 (from 50% to 60%) and as of July 1, 2010 (from 60% to 80%) and higher spot prices;
  • increase of heat generation and, consequently, revenue from heat sales (+25%)
  • effective operations on the market, namely, the conclusion of unregulated electricity+capacity contracts. For example, revenue from electricity+capacity contracts shot up more than two-fold to almost RUR 3,130 mn.

Operating expenses were up 45% - to RUR 33,675 mn, in particular, as a result of:

  • higher fuel expenses associated with the increase of electricity and heat generation and one-off (and not quarterly like in 2009) gas price hike, as well as due to more expensive fuel oil prices which is the main fuel of Murmanskaya CHPP (+75%);
  • growth of electricity generation by Company’s CHPP in condensing mode in 3Q due to higher demand, which resulted in lower fuel efficiency;
  • increase of electricity and capacity purchases on the wholesale market in order to fulfill the obligations of unregulated electricity+capacity contracts and export sales and higher purchasing market prices;
  • decrease of one-off gains.

  

Operating profit was down 23% to RUR 3,170 mn. Profit for the period was RUR 2,392 mn, which is 14% less than last year.

 

The table below summarizes the key financials of TGC-1 for 9M 2010:

mn RUR

9M 2010

9M 2009

Revenue

36 849,3

27 260,3

  electricity sales

16 005,2

9 873,7

  capacity sales

5 665,5

4 820,7

  heat sales

14 737,9

11 804,9

  other sales

440,7

761,0

OPEX

(33 678,8)

(23 210,7)

Operating profit

3 170,5

4 049,6

Pre-tax profit

2 930,0

3 806,2

EBITDA

5 619,0

6 105,6

Profit

2 391,9

2 784,8

EBITDA margin, %

15,3%

22,8%

Net margin, %

6,5%

10,2%

 

Full operational results can be found on corporate website in Reports section.