Moscow, 23 August 2006. RAO "UES of Russia" has published the 2005 financial statements of OAO RAO "UES of Russia" (the Parent Company) prepared in accordance with the International Financial Reporting Standards (IFRS).
Balance Sheet as of 31 December 2005:
The Company's total assets as of 31 December 2005 were RUB304.3 billion, an increase of RUB17.5 million. The Company's non-current assets in 2005 grew to RUB278.4 billion, up RUB18.9 billion, while the current assets declined by RUB1.3 billion to RUB26 billion as at 31 December 2005.
As at 31 December 2005, the property, plant, and equipment of OAO RAO "UES of Russia" stood at RUB6.3 billion, an almost twofold decrease from year-end 2004. The reduction in the fixed assets was due to the assets sale to subsidiaries and dependent companies, and contribution of assets to the SDCs capital in the course of the Company's reorganization.
The Company's accounts receivable and prepayments increased in 2005 by RUB2.6 billion to RUB12.9 billion, while the accounts payable declined over the year by RUB0.6 billion to RUB1.7 billion.
Statement of Operations for 2005:
The Company's revenues in 2005 totalled RUB33.5 billion, down RUB9.4 billion compared to 2004. These changes in revenues were largely driven by the transfer of electricity export/import function to a subsidiary; the ceasing to provide services after the asset sale to SDCs, and asset contribution to the SDCs capital in the course of the Company's reorganization.
The Parent Company's operating costs in 2005 fell by RUB7.6 billion to RUB8.9 billion. Such cost reduction was due to the factors set forth above.
The Company also released RUB1.5 billion of allowance for doubtful debts as a result of a better accounts receivable structure.
The Parent Company posted an operating profit of RUB24.6 billion in 2005, down RUB1.8 billion compared to 2004. As a result, the net income of RAO "UES of Russia" in 2005 amounted RUB19.8 billion, an increase of RUB2.4 billion compared to 2004.
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* The IFRS financial statements of the Parent Company, OAO RAO "UES of Russia", have been prepared on a standalone basis since 1998. The IFRS financial statements of the Parent Company for 2005 were audited by ZAO "PricewaterhouseCoopers Audit".
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