Russian Grids posts IFRS net profit of 31.5 bln rubles in H1
MOSCOW. Aug 29 (Interfax) - Russian Grids posted a net profit to IFRS of 31.54 billion rubles in the first half of 2014, compared to a loss of 2 billion rubles in the same period of 2013, the company reported.
First half revenue rose 9% to 379.5 billion rubles. Operating costs were up 4% to 331.7 billion rubles. Pretax profit jumped 17-fold to 41.85 billion rubles.
Earnings before interest, taxes, depreciation and amortization (EBITDA) in H1 increased more than 50% to 113.7 billion rubles. Adjusted EBITDA was 121.9 billion rubles against 115 billion rubles in H1 2013.
Russian Grids said adjusted net profit rose 5% to 38.1 billion rubles. The figures were calculated excluding losses from impairment of financial investments, promissory notes and receivables. Both corrected figures increased due to faster revenue growth, including revenue from electricity transmission services, in comparison with the growth of operating costs.
Operating costs rose due to an increase in the cost of electricity transmission services of territory grid operators. In addition, the rise in salaries for personnel, the increase in reserve volumes for court proceedings and other factors had an effect. The company also pointed to an increase in the cost of purchased electricity by certain subsidiaries acting as guaranteed suppliers in H1.
Besides that, the net financial expenses of the company also fell by 70% to 8.8 billion rubles. This is related to the fall in the volume of recognized losses from the impairment of financial investments. Last year the company had to acknowledge losses from the impairment of OJSC Inter RAO shares, the market value of which substantially dropped as of June 30, 2013.
Russian Grids' net debt increased by 27% to 467.9 billion rubles. The company raised loans for the financing of investment programs, it said.
Russian Grids is the largest electricity transmission and distribution grid company in Russia, bringing together a main power grid complex, as well as inter-regional and regional distribution grid companies. The state is the company's largest shareholder with 85.3% of shares.