TGC-1 releases 1Q RAS results

TGC-1 releases its financial statement for the 1Q 2010 according to Russian accounting standards.

Company’s revenue increased by 33.6% and totaled 16,012 mn RUR on the back of higher revenue from electricity and capacity sales in deregulated sectors of the market (+140%) and increase of heat sales (+28%) as a result of lower temperature in all regions of operation.

Revenue from heat sales was 50.4% of the total revenue and exceeded revenue from heat sales (48.8%).

46% от TGC-1 installed electric capacity is hydro, while 54% is thermal generation mainly in major cities with stable consumption of heat. General director of TGC-1 Boris Vainzikher commented: “Thanks to a mix of hydro and thermal generation our Company is less dependent on climatic factors. Last year higher water level let us increase hydro-generation, this year colder winter enabled us to effectively use combined-cycle thermal generation. Thus, loading HPPs or CHPPs we are able to maintain a stable electricity output”.

Costs in 1Q 2010 were up 33.5% and totaled 12,295 mn RUR. This was mainly due to higher fuel costs on the back of increased electricity and heat output on thermal plants, as well as higher costs to purchase power. Operating costs increased only marginally.

Thus, operating profit of TGC-1 was 3,717 mn RUR (+34%), while net profit increased 65% to 2,847 mn RUR.