OGK-2 genco to invest 20 bln rubles in capacity contract projects in 2014
MOSCOW. April 9 (Interfax) - OGK-2 will invest 20 billion rubles in the construction of new capacity under capacity supply contracts in 2014, the acting head of the genco's construction division, Sergei Medvedev, said during a conference call.
Medvedev said that on the whole, the company needed to invest 50.8 billion rubles in capacity supply contract projects. It invested 18.42 billion rubles in them last year, when the overall investment program was 20.3 billion rubles.
OGK-2 could invest just under 5 billion rubles re-equipping and renovating capacity this year.
Investment in capacity supply contracts might be approximately 20 billion rubles in 2015 and 10 billion in 2016.
All amounts are inclusive of VAT.
Medvedev also said spending on retooling and renovation might decrease slightly due to the commissioning of new capacity.
Natalya Vaitulensis, deputy CEO, economics and finance, said debt/EBITDA might be 4 by the end of the year. She said the company planned intra-group borrowing. In order for that figure not to be any higher and remain at a comfortable level, the genco's board of directors decided to raise intra-group loans. Vaitulensis also said the company is not planning to increase shareholder capital.
"The volume of investment program financing is quite a lot [at end-2014], probably the most of all periods. Accordingly, the raising of credits and credit resources is rather sizeable. At the end of the year the debt/EBITDA ratio is not significant, but it will exceed 4. But in this situation we can't not finance the investment program," she said. That ratio had increased to 2.53 at end-2013 from 1.86.
