Rosagroleasing closes 2012 with net loss of 1.9 bln rubles due to provisions
MOSCOW. Aug 13 (Interfax) - Rosagroleasing, the state leasing company that supplies machinery and breeding livestock to Russian farmers, closed 2012 with a net loss of 1.9 billion rubles, compared to a net profit of 17.1 million rubles in 2011, the company reported.
The loss was due to provisioning for bad debts, according to the company's annual report. In the course of a review of receivables in 2012, the company identified troubled debt on 850 contracts signed prior to 2010. Provisioning for troubled debts amounted to 2.548 billion rubles.
If it had not needed to make the provisions, the company could have posted a profit of 639.143 billion rubles, the annual report said.
Revenue dropped to 2.4 billion rubles in 2012 from 8.8 billion rubles in 2011, and gross profit fell to 1.2 billion rubles from 1.4 billion rubles.
Rosagroleasing delivered 10,000 pieces of machinery and 56,000 head of cattle to farmers in 2012, and plans to increase these figures to respectively 11,500 and 65,000 this year.
It was reported earlier that the government is discussing an Agriculture Ministry proposal to recapitalize Rosagroleasing to the tune of 10 billion rubles, but has not yet made a decision. Rosagroleasing now has charter capital of 78.8 billion rubles and a leasing portfolio of 153 billion rubles.
Rosagroleasing was excluded from the privatization plan this year. Economic Development Minister Alexei Ulyukayev said in June that there are proposals to implement a "special plan" in regard to Rosagroleasing and Russian Agricultural Bank (RusAg) to "restructure and turn them into development institutions."