TGC-1 has published its financial report for the first half of 2012 under Russian financial accounting standards.

The company’s revenue decreased by 5.6% year-over-year in the first six months of 2012 and equaled RUR30,739.6 mln. The decrease in revenue over the first half of the year was caused by the continued tendency for lower electricity prices on the day –ahead market, taking away the status of required electricity generation from 8 thermal power plants in the 1st quarter of 2012, low water levels, and a reduction in volume of exported electricity due to the continued poor market situation on external markets.

Revenue from electricity sales decreased by 14.2% and was recorded at RUR13,304 mln., including a decrease in revenue from exports by 63.2% to RUR436.2 mln. Power capacity sales had a positive effect on revenue: revenues for this item amounted to RUR5,475.8 mln. for the first 6 months of 2012, which is 16.3% greater than the same period in 2011. Meanwhile, revenue from power sales under CSC (capacity supply contracts) increased by more than 2.5 times year-over-year for the period. Revenue from the sale of heat decreased by 2.9% to RUR11,865.2 mln.

Production costs increased by 2.5% to RUR27,464.3 mln. The main causes of growth in expenditures were the increase in electricity production by thermal power plants, which resulted in additional costs for fuel, and the growth of depreciation caused by the commissioning of new equipment.

TGC-1 gross profit amounted to RUR3,275.3 mln for the first six months of 2012. Net profit in the reporting period decreased by 54.4% year-over-year and totaled RUR2,132.7 mln.