Russian Grids IFRS adjusted net profit falls 7% in H1
MOSCOW. Aug 29 (Interfax) - Russian Grids (the former IDGC Holding) saw its adjusted net profit to International Financial Reporting Standards (IFRS) fall 7% year-on-year to 36.3 billion rubles in the first half of 2013, the company said in a statement.
On an unadjusted basis, the company had a net loss of 2.1 billion rubles in the period.
Adjusted earnings before taxes, depreciation, and amortization (EBITDA) grew 9.5% to 115 billion rubles in H1 2013. On an unadjusted basis, EBITDA was down 23.3% to 67 billion rubles. The EBITDA margin was 19.2%.
EBITDA and net profit declined mainly due to write-downs for the depreciation of Inter RAO UES shares and promissory notes totaling 26.5 billion rubles and creation of a reserve for receivables amounting to 21.6 billion rubles. Excluding those charges, EBITDA rose in the period and the net profit was down only slightly, mainly due to a decline in revenue from technical connections.
Revenue in the six months grew 11.1% year-on-year to 348.8 billion rubles. The increase was the result of higher revenue from electricity transmission and sales connected with acquisition of guaranteed supplier status by a number of subsidiaries: IDGC Center , IDGC Volga , IDGC North-West , IDGS Siberia and IDGC Center and Volga .
Five analysts from investment companies and banks polled by Interfax had expected Russian Grids to have 27.8 billion rubles in net profit and 99.6 billion rubles in EBITDA.
Russian Grids' financials include the half-year results of OJSC Federal Grid Company UES .
Russian Grids combines 11 inter-regional and five regional distribution grid companies managed by FGC. The state owns 61.7% of shares. It received a 79.64% stake in FGC on June 14.
