IDGC Center and Volga increases commercial electricity output by almost 2% in H1
NIZHNY NOVGOROD. July 31 (Interfax) - Grid company OJSC IDGC Center and Volga (Nizhny Novgorod) increased commercial production of electricity by 1.7% year-on-year 27.86 billion KWt hours in the first half of 2012, the company said in a press release.
The company was able to reduce electricity losses by 6% to 2.582 billion KWt hours, which accounted for 8.5% of total grid output.
The company's total assets came to 79.561 billion rubles on June 30, 2012 (up 11.6% from the same date in 2011), including 66.339 billion rubles in fixed assets and 13.222 billion rubles in circulating assets. Net assets came to 45.399 billion rubles for the first half.
It was earlier reported that IDGC Center and Volga reduced its RAS net profit by around 85% to 417.3 million rubles in the first half of 2012. Pretax profit decreased by 67% to 1.323 billion rubles. The company's sales revenue went down by 12% to 29.221 billion rubles while costs of sales declined by 11.5% to 25.336 billion rubles.
The press release said that sales revenue decreased in the first half owing to changes to plans to compensate for "cross subsidization" in payments with suppliers in the Nizhny Novgorod region during approval of 2012 tariffs.
"The decrease in profit this year was driven by rising costs in order to form reserves on problematic debts and estimated liabilities because of disagreements with power sales companies regarding total sales revenue from electricity transfer and costs for compensating grid losses," the company said.
OJSC IDGC Center and Volga's main financial results for H1 2012 (in mlns of rubles):
| H1 2012 | H1 2011 | |
| Revenue, including: | 29 220.6 | 33 233.5 |
| Revenue from transfer of electricity | 28 652.2 | 32 695.3 |
| Revenue from technical connections | 413.5 | 365.1 |
| Production costs | 25 335.9 | 28 622.9 |
| EBITDA | 4 657.8 | 6 435.5 |
| Margin, % | 15.9 | 19.4 |
| Gross profit | 3 884.7 | 4 610.6 |
| Margin, % | 13.3 | 13.9 |
| Net profit | 417.3 | 2 838 |
| Margin, % | 1.4 | 8.5 |
| Commercial output, in mlns of KWt hours | 27 860 | 27 381 |
| Losses, % | 8.51 | 9.15 |
IDGC Center and Volga is the main supplier of services in the transmission of electricity and technological connection to power grids in Vladimir, Ivanov, Kaluga, Kirov, Nizhne Novgorod, Ryazan, and Tula Regions, as well as in Mari El and Udmurtia. IDGC Holding owns 50.4% in the grid company.