TGC-1 releases unaudited interim consolidated Financial Statements for the 12 months period, ended December 31, 2016 prepared in accordance with International Financial Reporting Standards (IFRS).                                 

Consolidated Statement of Comprehensive Income Highlights (RUB mln)	2015	2016
Revenue	69,424	78,891
Operating Expenses*	(59,407)	(70,290)
Operating Profit	10,017	8,601
EBITDA**	17,222	16,285
Profit for the Period	5,826	5,324

_{* With account to Other operating income and Government subsidy.}

_{** EBITDA is calculated as Operating profit + Depreciation of PP&E + Amortization of intangible assets and investment property.}

Consolidated TGC-1 Group revenue for 12M 2016 increased by 13.6% year-on-year, up to RUB 78,891 mln. Factors of the growth were the following:

• Growing capacity sales volume at competitive capacity outtake;
• Priority load for highly efficient combined-cycle units;
• Increased production at hydro power stations on the back of higher water factor at Nevsky branch.

Operating expenses for FY2016 grew by 18.3% year-on-year, up to RUB 70,290 mln. Variable costs increased by 10.5%, up to RUB 41,198 mln mostly on the account of higher fuel costs, caused by growing heat output. Fixed costs increased by 26.6%, up to RUB 20,920 mln, mainly due to the provision for impairment of accounts receivable, growing repair and maintenance expenses and loss, caused by impairment of PP&E.

TGC-1 operating profit decreased by 14.1% year-on-year totaling RUB 8,601 mln. EBITDA amounted to RUB 16,285 mln, down by 5.4% year-on-year.

Profit for FY 2016 declined by 8.6% year-on-year, down to RUB 5,324 mln, mostly on the account of loss, caused by impairment of PP&E.

Full TGC-1 FY 2016 results under IFRS are available at the corporate website in the “Reports” section.

 About

TGC-1 is the leading producer of electricity and heat in the North-West region of Russia. It operates 53 electric generating stations in four regions of Russia: St. Petersburg, Republic of Karelia, Leningrad Oblast, and Murmansk Oblast.

TGC-1 installed electric capacity of the Company’s stations amounts to 6.95 GW and heating capacity of 14,53 thous. GCal/hr. Major shareholders are Gazprom Energoholding LLC (51.79 %) and Fortum Power and Heat Oy (29.45 %). Total headcount of the Company, including subsidiaries, totals circa 7 thousand.