Adjusted FGC EBITDA 40.4 bln rubles in H1, net profits 7.87 bln rubles
MOSCOW. Aug 28 (Interfax) - OJSC Federal Grid Company has reported first-half adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of 40.4 billion rubles, up from 37.7 billion rubles a year earlier, and net profits of 7.87 billion rubles, down almost by half.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) amounted to 40.4 billion rubles, up from 37.7 billion rubles a year earlier. Sales revenues were up 13.3% at 75.8 billion rubles, including income from power sales of 1.4 billion rubles, up 48.8%. An FGC presentation for investors says the growth in earnings was largely due to higher charges for the transportation of electricity.
Analysts at six investment companies and banks surveyed by Interfax had predicted H1 FGC net profits of 12.3 billion rubles, EBITDA of 41.2 billion rubles, and sales revenues of 168 billion rubles.
The company's net debt increased from 168 billion rubles to 173.4 billion rubles.
Operating expenses rose 12.7% year-on-year to 34.7 billion rubles.
"The accrual of allowance for doubtful debtors in H1 2013 amounted to 3.738 million rubles, compared to 1.933 million in H1 2012. This increase was primarily due to recognition of allowances for receivables from OJSC Far East Distribution Grid Company and OJSC IDGC of the South," the company said. "Materials, repairs and maintenance expenses accounted for 6.3% of total costs, and declined by 10.3% to 2.189 million [rubles]," FGC said.
"Other operating expenses, which accounted for 31.3% of total operating expenses in H1 2013, increased by 17.3% year-on-year to 10.892 million rubles for the reporting period. This was primarily due to a 188.8% increase of property tax expense and 43.5% increase in expenses for electricity transit via foreign countries," the power company said.
The Russian government contributed its 79.64% stake in FGC UES to Russian Grids , the former IDGC Holding, on June 14. FGC UES owns and manages power grid facilities in Russia's Unified National Power Grid.