JSC “TGC-1” releases its audited consolidated Financial Statements for the period ended December 31, 2010 prepared in accordance with International Financial Reporting Standards (IFRS).
|
Consolidated Statement of Comprehensive Income figures (mn RUR) |
2010 |
2009 |
|
Revenue |
54,104 |
41,350 |
|
|
|
|
|
Operating expenses |
(44,899) |
(30,950) |
|
Operating profit |
9,205 |
10,400 |
|
Profit before income tax |
9,083 |
10,632 |
|
EBITDA* |
12,589 |
13,191 |
|
Profit for the year |
7,173 |
8,350 |
|
Adjusted profit for the year** |
4,002 |
4,004 |
* For business planning purposes EBITDA is calculated as “Operating profit + Depreciation of PP&E and intangible assets”.
** Excluding impairment loss reversed during the year (net)
In 2010 the Company’s consolidated revenue increased by 31% compared with 2009 – to RUR 54,104 mn. The increase is associated with the following factors:
- increase of electricity output and heat generation;
- hike in regulated and unregulated electricity and capacity prices;
- higher heat tariffs;
- increase of electricity and capacity sales as a result of market liberalization.
|
Revenue (mn RUR) |
2010 |
2009 |
|
Electricity sales |
31,101 |
22,320 |
|
Heat sales |
22,347 |
18,023 |
|
Other sales |
656 |
1,007 |
|
Total revenue |
54,104 |
41,350 |
In 2010 Operating expenses rose by 45% in comparison with the previous reporting period – up to RUR 44,899 mn. The increase was mostly attributed to variable costs hike – 70% of the total increase of Operating expenses in 2010.
|
Operating expenses (mn RUR) |
2010 |
2009 |
|
Variable costs |
33,463 |
23,708 |
|
Fixed costs |
12,195 |
11,590 |
|
Non-recurring expenses |
(179) |
(1,707) |
|
Depreciation of PP&E and intangible assets |
3,384 |
2,791 |
|
Total operating expenses, net |
48,863 |
36,382 |
|
Impairment loss reversed during the year |
(4,007) |
(6,154) |
|
Impairment loss recognized during the year |
43 |
722 |
|
Total operating expenses |
44,899 |
30,950 |
Variable costs were up, mostly, due to:
· higher fuel expenses associated with a significant growth of electricity generation by the Company’s CHP, as well as the hike in fuel prices;
· increase of electricity and capacity purchases on the wholesale market in order to fulfill the obligations of unregulated electricity and capacity contracts and export sales;
· increase of electricity and capacity purchases as a result of higher prices in the spot market.
Fixed costs are under control of the Company’s management. In 2010 the figure increased to RUR 12,195 mn, which is up 5% year-on-year. The increase is within the Russian Federation inflation level, which amounted to 8.8% in 2010.
As a result, FY2010 Operating profit under IFRS was down by 11% compared with 2009 and amounted to RUR 9,205 mn, while Profit after tax decreased by 14% year-on-year to RUR 7,173 mn.
According to JSC “TGC-1” General Director Mr. Boris Vainzikher, “Last year turned out to be a successful one. In 2010 the Company’s Net profit, secured by the flow of funds (excluding Impairment loss reversed during the year), reached RUR 4,002 mn. It happened despite the decrease of hydraulicity. Of particular importance is that the Company was able to completely implement the projects within the framework of the investment program, and this has already had its impact on effectiveness of JSC “TGC-1” operations in 2011.”
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