JSC TGC-1 releases its 3rd Quarter and 9 months 2010 financial results according to Russian accounting standards.
The revenue in January-September increased 36.5% compared to the same period of 2009 and totaled RUR 34,464 mn. The revenue from electricity and capacity sales was up 47.6% to RUR 21,634 mn, revenue from heat sales – 25.9% to RUR 12,406 mn. The increase in electricity and capacity sales in explained by liberalization of the sector, and hike in electricity useful output.
CoGS was up 37.9% to RUR 31,126 mn. The major factors contributing to the change in costs were:
- increase of fuel costs as a result of higher electricity and heat output, as well as one-off rather than quarterly (as was the case in 2009) gas prices hike;
- increase of purchases of electricity – majorly to fulfill unregulated electricity and capacity contracts and export sales;
As a result, operating profit in January-September 2010 totaled RUR 3,338 mn (+24.6%), net profit – RUR 2,023 mn (-14.6%). The decrease of the bottom-line is due to the following factors:
- higher CoGS growth vs. revenue in 3rd quarter as a result of seasonal decrease of heat output and, as a result, decrease of electricity output in cogeneration mode;
- higher interest payments to service the outstanding debt;
- decrease of other income.
The table below summarizes the key RAS financials in Jan-Sep 2009-2010:
|
|
9M2010 |
9M2009 |
Chg (%) |
|
Sales |
34 464 |
25 247 |
36,5 |
|
CoGS |
31 126 |
22 569 |
37,9 |
|
Operating profit |
3 338 |
2 678 |
24,6 |
|
Pre-tax profit |
2 727 |
3 137 |
-13,1 |
|
Net profit |
2 023 |
2 368 |
-14,6 |
|
EBITDA |
5 517 |
4 826 |
14,3 |
|
Total assets |
98 978 |
88 434 |
11,9 |
TGC-1 will disclose consolidated unaudited IFRS accounts for the 3rd Quarter and 9 months 2010 in late November.
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