JSC “TGC-1”: consolidated 1Q2011 IFRS results

20.06.2011

JSC “TGC-1” releases its consolidated unaudited 1Q2011 IFRS results.

Consolidated Statement of Comprehensive Income figures (mn RUR)

1Q 2011

1Q2010

Change, %

Revenue

21,175

17,448

21.4

Operating expenses

(16,076)

(13,646)

17.8

Operating profit

5,099

3,802

34.1

Profit before income tax

4,919

3,648

34.8

EBITDA*

6,124

4,619

32.6

Profit for the period

4,639

3,037

52.8

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

In 1Q2011 consolidated revenue of the Company grew by 21.4% year-on-year up to RUR 21,175 mn. The revenue growth is mostly due to the increase of electricity and capacity sales as a result of market liberalization and new capacity commission. 

Revenue (mn RUR)

1Q 2011

1Q2010

Change, %

Electricity and capacity sales

10,860

7,850

38.3

Heat sales

10,255

9,468

8.3

Other sales

60

131

-54.2

 Operating expenses in 1Q2011 rose by 17.8% year-on-year up to RUR 16,076 mn. The increase was mostly attributed to variable costs – 57.9% of the total increase of operating expenses.

Operating expenses (mn RUR)

1Q 2011

1Q2010

Change, %

Variable costs

11,889

10,482

13.4

Fixed costs

3,203

2,676

19.7

Non-recurring expenses (income)

(40)

(329)

-87.7

Depreciation of PP&E and intangible assets

1,025

817

25.4

Total operating expenses, net

16,076

13,646

17.8

The increase of the operating expenses is associated with the following factors:

-        increase of electricity and capacity purchases (+37.3%), resulting from the changes in regulation on the wholesale market,  in particular, terms of the electricity purchases for self consumption, and also in order to fulfill the obligations of export sales; current item’s share in the total costs is 11.6%;

-        higher fuel expenses (+10.6%) associated with the growth of electricity generation; 57.1% in the total costs;

-        considerable increase of heat transmission expenses (+36.4%) and decrease of rent expenses (-35.3%), due to the changes of the heat realization scheme and, as a result, change in the consolidated costs structure;

-        depreciation growth (+25.4%) resulting from the commission of CCGT-180 unit at Pervomayskaya CHPP and hydro unit replacement at Lesogorskaya HPP at Vuoksi HPP Cascade. Current item’s share in 1Q2011 totals 6.4%.

Thus, IFRS operating profit in 1Q2011 rose by 34.1%, up to RUR 5,099 mn, and profit for the period totaled RUR 4,639 mn, which is 52.8% more than the same figure in the previous year.

Full JSC “TGC-1” 1Q2010 results under IFRS can be found on the corporate website in the “Reports” section.