Inter RAO expects 9-9.5 bln rubles IFRS profit in 2014
MOSCOW. Nov 27 (Interfax) - Inter RAO expects net profit of 9 billion-9.5 billion rubles to International Financial Reporting Standards (IFRS) in 2014, Dmitry Palunin, head of the electricity holding's finance and economics center, said on a conference call.
"We target net profit in the 12 months in the IFRS financials in the neighborhood of 9 billion-9.5 billion rubles," he said.
Payment of the put option to Vnesheconombank (VEB) will not affect earnings, Inter RAO's head of strategy and investment Ilnar Mirsiyapov said
"Today, based on our IFRS results and the draft for 2014, payment of the put option to VEB will not affect IFRS net profit. We were able to structure the deal with VEB so that this would be spread over a number of years. We are not simultaneously writing off the delta between the current price and the price for exercising the put option," he said.
Inter RAO expects to avoid losses in Q4 2014.
Capex will total 48 billion-50 billion rubles in 2014. "This will be 15 billion less than we planned previously," he said, due to underspending of resources under capacity provision agreements program. "We will have a small carryover, a small shift to the right with the advent of 2015 in terms of volumes to cover spending on the CPA," he said.
Inter RAO plans to raise VEB financing in 2015, Palunin said. "Talks are underway with VEB right now. We count on receiving financing from then in the first half. That is the understanding. We are planning a medium-term deal, roughly five-seven years, those were the maturities mentioned. They are absolutely market terms and they are now under discussion," he said.