IDGC South boosts net profit by almost 27 times in H1
ROSTOV ON THE DON. Aug 10 (Interfax) - Regional grid company OJSC IDGC South posted 689.386 million rubles in net profit for January-June 2012, an increase of 26.8 times from the first half of 2011, the company said in its materials.
Sales revenue went up by 0.8% to 12.2285 billion rubles.
The company told Interfax that the increase in net profit and revenue had been driven, in part, by threefold growth in revenue from technical connections, a decrease on production costs of 5%, and contraction in the balance between revenue and expenditures by 4.4% in comparison with the same period of 2011.
A company representative said: "The decrease in costs was the result of efforts in the financial recovery program: optimization of expenditures, as well as raising their efficiency."
OJSC IDGC South's main financial results (in thousands of rubles):
| H1 2012 | H1 2011 | |
| Sales revenue | 12 228 528 | 12 128 491 |
| Costs of sale | 9 952 368 | 10 451 914 |
| Gross profit | 2 275 670 | 1 676 577 |
| Profit from sales | 1 885 631 | 1 302 491 |
| Pretax profit | 821 101 | 168 903 |
| Net profit | 689 386 | 25 733 |
The company's accounts payable increased from 5.405 billion rubles on December 31, 2011 to 5.893 billion rubles on June 30, 2012. Accounts receivable rose from 8.903 billion rubles to 11.369 billion rubles.
OJSC IDGC South transports electricity in the Rostov, Astrakhan, and Volgograd regions, as well as the Republic of Kalmykia. The company is part of the IDGC Holding.